On Thursday morning, we were asked to participate in a radio chat with Melissa Ross, host of NPR’s First Coast Connect to chat on the current NFL Labor Negotiations and the CBA that is set to expire at midnight tonight. During the interview, many points were addressed but there are many other factors to consider that puts our favorite sport in jeopardy of ceasing operations for the 2011 season.
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“>You can listen to our chat here (skip to about the midway point on the player to get to the NFL segment) but as with any negotiation, the details change daily and they can always be elaborated on.
We break down every aspect that are affecting the talks and aspects of the negotiations you might not have considered just yet. Its much more than “greedy players wanting more money”.
Hit the title/read more to see what each side wants, how it affects the players, fans, vendors and what will happen next…
What’s Being Negotiated:
NFL owners argue that the league revenues are growing at a rate of 5.5% while player’s salary is growing at over 11%. Its a recipe for disaster in the future years if pay scales aren’t regulated. The owners, without opening their financial books to the PA, are asking for an additional billion dollars on top of the billion they already receive before anything is shared with the players.
The owners want a rookie pay scale, which is something many veteran and former players want as well, to reduce paying millions of guaranteed money to unproven players.
Also on the table for the owners is the request for an 18 game schedule, something the players ARE NOT willing to give especially if they have to hand over more money. Less money for more work and added risk of injury does not sit well with any player.
The Union, though fine with the current CBA which had an additional 2 years left on the deal had the owners not opted out; want:
- extended health benefits that last well over the current 5 years
- An independent appeals process for discipline on conduct and drugs
- more revenue sharing among owners with the allotment funneled to the players
Both sides know the number one factor that will affect the negotiations is how close it gets to the season -Darren Rovell of CNBC Sports
How This Affects Players
While many of the owners can survive without football in 2011, for the players its not realistic. While some players are millionaires, most make an average of $800, 000 a year. That’s not chump change by any means but when the average playing career is only 3.5 seasons, planning for 75 years of your life with a $10million signing bonus is not something a fresh faced 25 year old kid, fresh out of college, is thinking of.
In fact, 78% of NFL players are broke 2 years after leaving the game.
But its not just money that the players will lose. Its also health insurance as well. If there is a lockout, many of those same millionaire players will be forced to use COBRA as their insurance provider. One NFL player and his wife chose to induce labor prior to the expiration of the current CBA so that the labor costs would be covered under the NFL benefits rather than COBRA.
It doesn’t stop with the current players. Out of all players, rookies and free agents would probably see the worst affects as they would not be able to practice with NFL teams or participate in OTA’s, something essential to the development of a player.
Players and Teams Aren’t the Only Ones Affected
In Jacksonville, while Jaguars owner Mr. Weaver has said there will be zero layoffs if there is no football played, it doesn’t make up for the lost revenue that area restaurants, parking providers and other vendors will lose out on.
Even the gaming industry would take a huge hit as Madden sales could drop by over 5 million copies sold Madden was the 2nd best selling video game of 2010 next to Call of Duty: Black Ops.
Let’s not forget the fans, who seem to have been forgotten by the league, will not have their favorite sport to cheer on every Thursday, Sunday and Monday. No Fantasy Football, no tailgating and sports writers will soon have a longer dead period after the Fall Classic.
What happens next?
While there is a possibility the the Thursday midnight deadline could be extended, if a deal isn’t reached the PA has threatened to decertify the union, essentially making all players independent employees. This same tactic was used before in the 80’s, but its likely it wouldn’t be as successful this time around. If the union doesn’t decertify as they did in the past, the owners could avoid paying the players by saying they are “ceasing operations” rather than locking out.
Undrafted players and free agents would not be able to sign with a team and would not be able to participate with any team activities.
If the owners get their way allowing for an 18 game schedule, expect roster sizes to increase and a small cap increase to allow for injuries that are sure to come as a result of a longer season. Also look for the preseason games to become even more meaningless.
Let’s keep in mind that both the NFL and the PA have been negotiating the same terms, for two years. This will not get resolved by Thursday.
Important Notes:
- Judge Doty, who has ruled on every major CBA since 1993 ruled on Tuesday that the NFL acted without good faith when TV contracts were structured. Language was specifically added to all TV agreements to allow for over $4 billion in profits to be made in 2011, even if there is not a single game of football played. The judge’s ruling essentially places the owners on equal footing with the players in that they will not receive a paycheck if there is no football played.
- The NFL made over $9billion in revenue last year. The owners currently get $1billion of that automatically. And the rest, about 60% is shared between player salaries and benefits.
- 8 of the 10 top rated shows on TV last year were NFL games
- The highest rated TV programming ever was this year’s SuperBowl with the Green Bay Packers and Pittsburgh Steelers
- More people watched the NFL Draft than other sport’s playoff games
- According to the Sports Biz Journal, the NFL has a reserve fund of about $900M that will be accessible to team owners in the event of a work stoppage.
- Because the NFL is legally a non profit organization, they only share information on revenue, not costs. Denying the union knowledge of actual net profits. To quote our other writer on GG, Rob Lazlo stated a perfect example: :That’s like saying if someone offered you a million dollars, you would be ecstatic, until you found out the company was making $130 billion, which your measly million seems like chump change.”
- Mark Murphy, President/CEO of the GB Packers and also former player and union member makes a rather interesting statement that perhaps we do too much for current players and that former players were forced to work in the offseason and get a job after their playing days were over. They also never got health insurance, severance pay or 401K as current players do.
- Current Vegas odds have the NFL locking out for the 2011 season
In Closing…..
I think I speak for all of us when I say I hope all of these lawyers work this thing out to where we do not miss any football in 2011. While this has the makings to last well into the summer and possibly the fall, its hard to imagine the NFL and its players to leave $9 billion on the table.
Let’s all say a collective prayer to the NFL Jesus that a miracle is performed between now and midnight tonight.
