Possible NFL CBA Issues?!

[CraigSca]

From the ESPN article....

http://sports.espn.go.com/nfl/columns/story?columnist=clayton_john&id=2018691

They key aspect is the big market teams can't agree to what extent they share with the smaller market teams.

"Today, the entire league faces a critical business challenge – not unlike others that we have successfully addressed in the past two decades," Tagliabue told the owners. "The challenge is how to restructure our leaguewide economics to extend the CBA with the [NFL] Players' Association to ensure the continuing competitive quality of our game and to continue the construction of superb new stadiums. And we must achieve these three critical goals in ways that take account of the escalating costs of club operations and that are within reach of all 32 teams."
Tagliabue sounds concerned, and he should be. To get a new agreement, owners first have to restructure their business models. Currently, the players get 64 percent of designated gross revenues, which was $3.07 billion in 2004. But other revenue streams take that total to about $3.5 billion, meaning about 12 percent of revenues aren't designated to the players. That's roughly $418 million, a huge chunk of money.

The league and the players have agreed in principle to go to a total revenue formula. In the future, total revenues should grow to $5 billion-$6 billion with new stadium deals and increases in the television packages. But owners can't agree with other owners, and therein lies the biggest part of this dead end.

High-revenue teams such as the Redskins, Cowboys, Texans, Eagles and Patriots have a huge edge in revenues over the lower-end teams such as Arizona and Indianapolis. The differences in total revenues can be more than $100 million in some cases, and the NFL has always been a league that shares. Right now, chances of getting a settlement among the owners in Maui is bleak."

/sarcasm on

Gee, I thought the NFL was THE model of ownership that understands the entire league's health is paramount.

/sarcasm off

[flere-imsaho]

The current CBA expires in 2008. Sure, the league would like to get this sorted out now, but it's not like its in a situation of imminent doom.

ESPN is trying to generate a story where none (yet) exists.

[HomerJSimpson]

/sarcasm on

Gee, I thought the NFL was THE model of ownership that understands the entire league's health is paramount.

/sarcasm off

It is. Name one that is better. This hasn't even come close to boiling over yet. I would say there is a better than average chance that a deal is done on this long before it hurts the league.

[Arles]

Perhaps the NHL should have started this process three years before its CBA expired. Maybe that level of "forward thinking" is a main reason the NFL is the model to rely on. ;)

[bosshogg23]

The article mentioned rich owners not necessairly powerful owners. I didnt even see Paul Allen mentioned as a rich owner though.

Rooney was mentioned and clearly has alot of pull. Ford, of Detroit, wasnt mentioned but has strength as well. Robert Kraft seems to be gaining in popularity as well. The article seemed to be a lot of words with little impact.

The NFL would be well served to hammer out an agreement early. Got it, ignore the rest.

[dixieflatline]

The current CBA expires in 2008. Sure, the league would like to get this sorted out now, but it's not like its in a situation of imminent doom.

While not at imminent doom there are still lot's of issues here. 2007 is an uncapped year which would be very dicey for the league. Also there is this:

Long-term deals are becoming more difficult to do because signing bonuses can only be prorated for five years, and that term drops to four in 2006.

So this will make it even more difficult for teams in the next couple of years dealing with the cap. They aren't at an emergency state yet but because of the way the rules are written into the current CBA it will get to the doom stage well before 2008.

[Franklinnoble]

The current CBA expires in 2008. Sure, the league would like to get this sorted out now, but it's not like its in a situation of imminent doom.

ESPN is trying to generate a story where none (yet) exists.

Well put. And you didn't even have to illustrate it. :D

[CraigSca]

Not sure that ESPN was generating a story here, unless Paul Tagliabue is always gloom and doom when the owners meet in Hawaii.

[HomerJSimpson]

Not sure that ESPN was generating a story here, unless Paul Tagliabue is always gloom and doom when the owners meet in Hawaii.


To be fair, this isn't a ESPN "created" story. This is an important part of what is going on in these meetings. I think saying this is proof that football is doomed is silly, though.


edit: not saying this couldn't turn out bad, but if the past is any indication, the NFL will handle this. Unlike, say, baseball, where this would spell a strike, several months of arguing, and finally an agreement that doesn't even come close to fixing the problem.

[cthomer5000]

Not sure that ESPN was generating a story here, unless Paul Tagliabue is always gloom and doom when the owners meet in Hawaii.
Unlike other leagues they're dealing with this well in advance. It's a non issue until 2007 in my book.

[CraigSca]

Personally, I think one day the NFLPA may find themselves strong enough to ask for guaranteed contracts (since they're the only league without them). If that's the case, I can imagine a LONG, drawn-out war.

[Cap Ologist]

I wonder how this will affect this year's rookies since last years could only sign for 6 year contracts. Are teams going to have to prorate over 5 years?

[HomerJSimpson]

Personally, I think one day the NFLPA may find themselves strong enough to ask for guaranteed contracts (since they're the only league without them). If that's the case, I can imagine a LONG, drawn-out war.


I think we'll just see scabs again. The NFL owners have cojones.

[Franklinnoble]

I think we'll just see scabs again. The NFL owners have cojones.

Yep. We'll have replacement players. And the Redskins will probably win the Super Bowl again. :D

[HomerJSimpson]

Yep. We'll have replacement players. And the Redskins will probably win the Super Bowl again. :D


I didn't say replacement owners. Just players.

[HomerJSimpson]

Dola: Can you imagine the replacements Snyder would hire?

"The Washington Redskins have signed the first replacement player for the up-coming strike shortened season. O.J. Simpson is coming out of retirement after signing a 3 year, 45 million dollar contract...."

[General Mike]

Perhaps the NHL should have started this process three years before its CBA expired. Maybe that level of "forward thinking" is a main reason the NFL is the model to rely on. ;)

Maybe the NHL owners tried to talk to the players and the players didn't want to even sit down at the bargaining table. :rolleyes:

[Crapshoot]

Good. The Salary Cap is an essentially bad concept. I for one would cheer when it comes down.

[SteelerFan448]

I don't anticipate it coming down. That is why the league is working three years in advance. A league without a cap will be like MLB and the old NHL. That would also be a HUGE blow to football and its popularity. Pretty much the players want the same percentage of the revenue they get now, just including local stadium and sponsorship deals included, which are considered to be the "hidden" revenues.

[Anthony]

they shouldn't get those hidden revenues - they didn't negotiate the deals, why should they get the benefit?

that's like your company profits from your excellent work. so you get compensated as a valuable commodity. now what does you being a valuable commodity have to do with the revenue the company might get from other business deals? for the most part the revenue the players have a stake in is gate receipts, tv deals and merchandising (i know i'm missing something). they have a direct affect on gait reciepts - a bad team=decreased fan interest. the better the player is the more people will buy their jerseys. but local stadium/sponsorhip? i don't buy that.

[Karim]

Perhaps the NHL should have started this process three years before its CBA expired. Maybe that level of "forward thinking" is a main reason the NFL is the model to rely on. ;)
They did. Bettman approached the NHLPA as early as 1999 but the notorious "11th hour man" Goodenow refused to negotiate early.

[Solecismic]

This one is so simple. The owners are being idiots on this one. All they have to do is agree that revenue is revenue, and the players will move a little on the percentage. C'mon people, this isn't the NHL. This isn't Bud Selig and his used car sales approach to negotiations. Just everyone agree that you've got a great thing going and don't want to f it up.

[MikeVic]

Dola: Can you imagine the replacements Snyder would hire?

"The Washington Redskins have signed the first replacement player for the up-coming strike shortened season. O.J. Simpson is coming out of retirement after signing a 3 year, 45 million dollar contract...."

He'd sure kill on the field though.

[Wolfpack]

Just like that scene at the start of "The Last Boy Scout", right?