Contary to our belief that the new round of Collective Bargaining Agreement discussions between the NFL and its union would require a new deal among owners regarding the sharing of unshared revenue that currently is included in the whole 59-cents-on-the-dollar formula from which the players are paid, we’re told that, for now, the issue of revenue sharing won’t be an issue.
It was a huge issue in 2006, given that the players’ share was jumping from a big piece of the primarily shared revenues to a smaller piece of a bigger pie including all of the football revenues.
At the time, the league instituted a system of supplemental revenue sharing, aimed at requiring certain high-earning teams to carve off some cash to be given to low-earning teams based on need. Apparently, that system has worked, so far.
But this doesn’t mean it won’t become an issue as additional NFL seasons unfold. If the disparity between the haves and the have-mores continues to expand every year, the teams who are earning the least (and thus paying the most, relatively speaking, to their players under a league-wide salary cap number pumped up by the big money earned by others) could begin to clamor for change.
As we understand it, those teams are currently being placated in part by logic based on the reality that much of the shared money from television contracts and sponsorships deals are a direct result of the presence of franchises in large markets.
Regardless of the specific reason for it, the fact that the owners apparently won’t be fighting among themselves is a good sign, since it’s one less issue that everyone will need to address as the CBA discussions unfold.
As to the real issues in the looming negotiations, we’ve summarized them all as part of our twice-per-week gig with SportingNews.com.
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May 24th, 2008 at 9:12 pm
“we’ve summarized them all as part of our twice-per-week gig with SportingNews.com”
Hey Mike,
Is that the royal we or is there a co-author we don’t know about.
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May 24th, 2008 at 9:27 pm
Nice simple SportingNews column outlining the simple issues involved - of course we all know the devil is in the details. Hopefully a portion of the overpaid rookie salaries can be diverted to players - young and old - who have actually done something to EARN their salary. Such a provision strenghtens the quality of play, and the higher the quality of play, the more revenue the NFL will generate.
The real bottom line issue is the 59/41 split between the players and the teams. None of really know what an equitable division of the revnues is - but with some of the inflated rookie salaries going theoretically to veterans, maybe that will soften the impact and allow the Players Union to soften their stance.
I guess in the interest of solidarity, revenue sharing among the organizations is not an issue - but at some point it should be. It’s simply not fair for one owner to build a stadium out of his own pocket while other owners somehow get the taxpayers to foot the bill. Maybe it need not be done in the context of the CBA but I think all owners need to be fair to each other as well as the players.
Hopefully everyone avoids an uncapped year as once Pandora is out of that box, I don’t think she’s ever going back in again.
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May 25th, 2008 at 5:40 am
I cannot imagine that the NFL will get all that ar without sharing all of the revenue from which the players get a cut. I understand the problmes that the “haves” might have with that. I understand that some franchises should be more valuable than others and that they should make a greater profit but I don’t think the profit margin relative to gross revenue is high enough to sustain anything less without creating a competitive disadvantage.
Tom S.
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May 25th, 2008 at 10:24 am
“As we understand it, those teams are currently being placated in part by logic based on the reality that much of the shared money from television contracts and sponsorships deals are a direct result of the presence of franchises in large markets.”
For this to be true, you would have to say that high NFL ratings are not also the product of close competition on the field.
And perhaps the large market owners would not have such valuable franchises if their home markets were not effectively protected from competition.
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May 25th, 2008 at 12:46 pm
Didn’t Gene Upshaw make it a bigger issue by demanding that the owners work out the revenue sharing before they made a deal with the NFLPA? Didn’t you believe (rightly) that it was more of a favor to Paul Tagliabue than it mattered to the NFLPA since they’d get the 59% of total revenue regardless of how the owners figured out revenue sharing amongst themselves?
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