What’s Being Negotiated:
NFL owners argue that the league revenues are growing at a rate of 5.5% while player’s salaries are growing at over 11%.
Because the NFL is organized as a non profit, they are not obligated to share information on costs. They only publicize revenues and have consistently denied the players' union (hereinafter, "NFLPA") requests for information about net profits. The owners are now asking for an additional billion dollars on top of the billion they already receive from gross revenues before anything is shared with the players.
The owners also 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.
One of the most hotly contested items is the owners' 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 the following:
- extended health benefits that last well over the current 5 years
- An independent appeals process for discipline on conduct and drugs
- more revenue sharing
How This Affects Players
Many of the owners can survive without football in 2011, but 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 $10 million 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 rely on COBRA for insurance.
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.
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.
- 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