We heard that NFL Commissioner Roger Goodell was trying to persuade owners not to vote now on opting out early of the Collective Bargaining Agreement because Goodell feared that the move would trigger bad press for the league.
Apparently, the ultimate decision was to move forward — and then to try to control the P.R. regarding the move.
Moments after posting an item about the unanimous decision to pull the plug after the 2010 season, we received by e-mail a press release from the Baltimore Ravens setting forth several management-side talking points.
The release emphasizes the fact that football will continue without interruption for at least three more seasons.
The release also characterizes the uncapped year (2010) as a “season [that] will be played without a salary cap under rules that also limit the free agency rights of the players,” which is an accurate description that many players simply don’t realize.
The release characterizes the issues as follows:
“A collective bargaining agreement has to work for both sides. If the agreement provides inadequate incentives to invest in the future, it will not work for management or labor. And, in the context of a professional sports league, if the agreement does not afford all clubs an opportunity to be competitive, the league can lose its appeal.
“The NFL earns very substantial revenues. But the clubs are obligated by the CBA to spend substantially more than half their revenues — almost $4.5 billion this year alone — on player costs. In addition, as we have explained to the union, the clubs must spend significant and growing amounts on stadium construction, operations and improvements to respond to the interests and demands of our fans. The current labor agreement does not adequately recognize the costs of generating the revenues of which the players receive the largest share; nor does the agreement recognize that those costs have increased substantially — and at an ever increasing rate — in recent years during a difficult economic climate in our country. As a result, under the terms of the current agreement, the clubs’ incentive to invest in the game is threatened.
“There are substantial other elements of the deal that simply are not working. For example, as interpreted by the courts, the current CBA effectively prohibits the clubs from recouping bonuses paid to players who subsequently breach their player contacts or refuse to perform. That is simply irrational and unfair to both fans and players who honor their contracts. Also irrational is that in the current system some rookies are able to secure contracts that pay them more than top proven veterans.”
The last paragraph is the key, in our view. This fight might not be about reducing the 59 cents on the dollar that the players now receive. The goal might be to ensure that the players don’t try to get more — and to reverse the terms from the last CBA that the league overlooked as the owners tried to come up with an acceptable plan for sharing unshared revenues.
And that’s the one issue that the release ignores: The ability of the owners to come up with a long-term solution to the problem of the disparity in total revenues between teams making the most, and teams making the least. The use of a salary cap based on all revenues makes the player costs eat more deeply into the profits of the teams that generate the least revenue.
The supplemental revenue sharing plan apparently isn’t making enough of the owners happy, and it’s a problem that could ultimately cause the owners to fracture.
So even though a possible work stoppage is the thing about which most fans will periodically fret over the next couple of years, the actual worst-case scenario is the splitting of the NFL into two leagues — one with teams that share every penny, and one with teams that follow the “every man for himself” mold.
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May 20th, 2008 at 10:36 am
*Barf*
I hate spin. It makes me nauseous.
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Rating: 3 / 5 with 1 rating(s)
May 20th, 2008 at 10:42 am
here we go, the AFL is going to make a a come back
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May 20th, 2008 at 10:44 am
I don’t disagree with anything in this article, except the last point.
The NFL will never split into two leagues. Thats ridiculous to think. This thing will get pushed to the near last minute, a bandaid agrement will be reached, Upshaw will be gone and in a few years we will be right back where we are now and hopefully something long term in a less dramatic economic climate can be reached.
There is too much money at stake in a league that completely dominates pro sports.
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May 20th, 2008 at 10:45 am
I am really excited about this Opt-Out vote! Mike Brown and Ralph Wilson got railed for not voting for the current CBA and well well well, how right they were about how the clubs won’t be able to sustain their revenues and profit margins with the escalating costs that have cropped up over the past 2 years! The profit sharing definitely needs to be improved and reworked but the biggest point I get out of that Baltimore Press Release is the comment about Rookies getting bigger contracts than current players! I have been saying for years that this isn’t right. A rookie that has never played a down in the NFL should never be able to make more than a 10 year veteran at the same position who may be a superstar in his own right! The NFL needs to adopt an NBA style format for rookies that caps the #1 Pick and then assigns a percentage of contract money for each pick below after that!
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May 20th, 2008 at 10:52 am
The main problem is that you have 32 multi-millionaire owners and better than 1700-players that are bickering about how to carve out their “fair share”.
Here’s a novel idea: leave the owners and the players out of it, and assign a committee that would include a few lawyers, a few economists, a few marketing/advertising people, and at least one intelligent, die-hard football fan from each franchise. Lock them in a room with all the available data, make a new CBA that is fair and balanced across the board, and tell the owners and players that they need to follow it.
The owners put a product out there, and the players are in the employment of the owners. If we, as the football fans, aren’t getting our money’s worth, we need to be boycotting the game and all aspects of it (ie, games, internet, merchandising, etc.) Maybe when the owners and players realize that it’s OUR MONEY they are trying to get, and we’re not putting it into their pockets, they’ll get a deal done faster.
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May 20th, 2008 at 10:54 am
The key is stadium financing. The business model is changing from one with high labor costs and low fixed costs (due to government subsidized stadiums) to one with higher fixed costs. If stadiums are going to be financed (in excess of $500mm) out of cash flow (vs local taxes), then labor costs have to be below 60%. There is no other way. You pay the players and have someone else pay for your venue, or you pay the bank.
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May 20th, 2008 at 11:01 am
I hate this cr@p. They better figure it out, because I will seriously consider losing my life-long love for pro football if there is a work stoppage.
Whatever agreement they work out, they DEFINITELY need to create a rookie pay scale. It isn’t so much that the rookies are overpaid (though they are), it’s that it is ruining the competitive balance of the league. If a bad team picks early in the first round and pays somebody a guaranteed $30 million, and he becomes a bust, that team is essentially ruined for years.
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May 20th, 2008 at 11:01 am
Beyond revenue sharing one of the main fights is rookie contracts.
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May 20th, 2008 at 11:08 am
The problem is still the revenue sharing between the owners. Teams with lower revenue win fewer games than high revenue teams on average. The reason 59% is a problem is that revenues vary too greatly for teams like the Cardinals too keep up twith the patriots, as was said the other day.
Both sides are still making greater than normal profits, but competitive balance is hurt when some teams simply have more too spend. Whether that is on players, coaches, or facilities.
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Rating: 4.5 / 5 with 2 rating(s)
May 20th, 2008 at 11:45 am
They could have just said “we are opting out of the current CBA because of current gas prices” and the American public would have the owners back in a heartbeat. No need for all those paragraphs.
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May 20th, 2008 at 1:46 pm
Goodell should worry about the damage control over his botched handling of Spygate.
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