Despite periodic hints from NFL Players Association Executive Director Gene Upshaw that the league claims its current Collective Bargaining Agreement has caused one or more teams to start losing money, it’s now clear that the looming labor battle isn’t about keeping franchises financially viable.
It’s about preserving a certain level of profit.
SportsBusiness Journal takes a close look at the situation, contrasting the NFL’s current predicament with genuine financial threats that baseball, basketball, and hockey have experienced in the past.
This reality suggests to us that, when push comes to shove, the owners won’t sacrifice their ability to pay the bills and to generate a certain level of profit in search of even greater profit.
Not that there’s anything wrong with profit. The goal of any private business enterprise isn’t to break even. It’s to make money. Typically, as much as possible.
Part of the reality here is that the NFLPA has no legal right to obtain financial information unless and until the league cites financial concerns as one of the reasons for seeking a new deal.
Still, the union wants more information to support the league’s position that its not making as much profit as the league’s teams would like to make. Without it, the union can’t even begin to justify making financial concessions.
Frankly, we continue to agree with the union on this one issue. There simply has to be some sharing of financial information to support the notion that the risk and the investment of time and worry and the value of the brands involved aren’t yielding a sufficient amount of money for those who own the teams once all expenses have been paid.
Again, the owners are entitled to make a profit. But they simply can’t expect the union to take their word for it when it comes to how much profit the owners already are enjoying.
It’s clearly a sticky situation for the league. Rich guys saying they’re not getting sufficiently richer never goes down well with the public.
Especially at a time when more and more members of the NFL’s audience are paying more than half their hourly wage for a single gallon of the stuff they use to get to and from the places where they earn their money.
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May 26th, 2008 at 11:13 am
Said Florio: “Rich guys saying they’re not getting sufficiently richer never goes down well with the public. ”
True, but don’t forget that the players are also viewed as rich guys getting paid big bucks to play a game and they will find it difficult to gain much sympathy from the public either.
Should this become ugly, the public view is likely to be “a pox on both their houses and just give me my football.”
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May 26th, 2008 at 11:24 am
Florio makes a good point in saying that there is nothing wrong with making a profit. But NFL owners are being, what’s the word, GREEDY.
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May 26th, 2008 at 11:28 am
Call it what it is.
Excessive greed………on both sides.
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May 26th, 2008 at 12:34 pm
The only nfl player who drove a worse car than me was Koy Detmer.
And that was only because he was cheap.
I have no sympathy for the rich players or the rich owners.
All of these leagues need to stop airing their money laundry in public.
It turns off fans in droves. We’re only reminded how filthy rich both sides are.
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May 26th, 2008 at 12:45 pm
I suppose a player that has never taken a snap in the NFL should be paid more than Manning and Brady?
Per the Players Asso. it’s only 1 or 2% of the total payroll of the NFL! A rising tade lifts all boats? I never thought Upshaw was a Reaganomics Major?
Is it greed or ensuring the League will be financially healthy for the long term? I don’t know? However, greed and envy runs rampent on this message board! E pluribus unim..
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May 26th, 2008 at 12:54 pm
i’m sure there are a couple of thousand
jobs out there for people who score 4,5 or
6 on the wonderlic test.i’m real sure.
million dollar jobs are out there,they’re
all over.right??
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May 26th, 2008 at 1:42 pm
Yeh, BOTH are greedy, but getting something done about rookie pay has to be a priority.
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May 26th, 2008 at 2:00 pm
Not all owners are part of the ‘billionaire boys club’ (i.e. Jones, Snyder, McNair, Bisciotti) who are “cash” rich. Look back on some of the previous owners who were “paper” rich but cash poor (i.e. Joe Robbie, Hugh Culverhouse, Art Modell)I am pretty sure there are still some out there now. Also, what is a “fair” return? 1% 5% 10% These owners have hundreds of millions of dollars invested. We, as investors or business owners, would be very upset with a return of 10% or less.
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May 26th, 2008 at 2:57 pm
i’m not a jerra fan,but put things into prospective.
jerra is betting a billion,yes!!billion dollars of his
own money on the new stadium.tell me what guarantees
he has that everything will be just fine.
jerra is entitled to as much as he can make,he’s the
guy who is putting his ass on the line,not any of you
who are complaining how much money the owners are making.
jerra is the only guy i can see who has the onions.
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May 28th, 2008 at 1:27 pm
What is never mentioned in the term “Total Football Revenue” is the amount of money that players make off the football field. I think the money that player’s make on endorsements should be considered into the equation. Would Payton Manning make $20 million in endorsements if he wasn’t in the NFL? Does the union get their “cut” of this?
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