I have researched this a little bit and heard a few independent former general counsel/agents associated with the NFL and NFL athletes speak on this and all have said the same thing.
1. The Players are being greedy. The NFL will have a ton of increased revenue with some of the recent very lucrative deals they have signed, meaning the players, via the expanded cap, will receive a huge raise in pay as it stands now. Also, the NFL has already agreed to include some additional forms of revenue, but at a lesser percentage. That would raise the players overall monetary gain via the salary cap even more, just the percentage goes down (i.e., 60% of 100 is 60, but 55% of 150 is 82.5, so percentage down, but pie gets bigger). Upshaw is trying to increase the percentage, the revenue involved, and take advantage of the more lucrative streams of revenue (i.e., 60% of 100 is 60, 62% of 150 is 93). Forget a double dip, he's trying to triple dip in one fell swoop.
2. Both the owners and the players will be hurt by this. The players will be hurt because many players would be released who shouldn't be, forcing them out of as stable a situation as the NFL has. Other players, like Alexander and James, are unlikely to see the kind of money that free agents from previous years have seen. Most free agents will be forced to take remarkably less money than in previous years. Rookies will have contracts half what those before them have received. With no incentives allowed in deals, it will be tough to restructure deals to accommodate these top prospects requests. Sucks to be Leinart if this doesn't get done. NFL minimum salary restrictions vanish, meaning that NFL teams no longer are required to give veterans $400K plus deals (the working man is devastated by this). NFL minimums could be as low as $60K, and you better believe a lot of small market teams will take advantage of that, especially with rookies. NFL teams will not be required to spend a minimum on players salaries, meaning teams like the Cardinals could strip their rosters to bare minimum and still profit from existing NFL shared revenue. They can't win in an uncapped year if Daniel Snyder just buys every free agent for 3 times their true market value, so why try. Also, Players will not become unrestricted free agents until their 6th year in the league, rather than their 4th (sucks to be Lance Briggs).
The owners are at risk of losing the salary cap forever, and that cap is what has kept this league heads and tails above every other sports market in the USA. Sure, the diehards like most of us, will still watch. But its the crowd that is on the fence that has been drawn to the most competitive sport in America that is at risk of going elsewhere, and that means that cap is the difference between multi-billion dollar TV contracts and MLB rights that are paltry in comparison. The owners stand to lose billions over the years by not ironing this out.
Bottom line is that nobody wins here. It is in everyone's best interest to work this out. But don't be fooled by Upshaw coming down from 64% to 61%. Just because I set the bar 20 points above where I should've started, doesn't mean that when I come down 10 points I'm meeting in the middle. To the fans, it would appear so, but to the people in the know, it's a bargaining ploy to show that Upshaw is willing to negotiate in the fans eyes. Upshaw needs to work out his greed issues and a fair deal should be struck around the 58-59% range, or risk the greatest sports cash cow blowing up right in all of their faces.