Wednesday, June 22, 2011

Collective Bargining Agreement For Dummies

Breaking News - the National Football League is in a lockout!

Well, they've been in a lockout 99 days now but with the NBA playoffs stealing our attention for the majority of the past two and a half months it was easy to overlook the NFL's labor situation. But now that the dramatics of the NBA playoffs is over, all eyes intently go back to America's Obsession, the NFL.

So in case you have been living under a rock for the past four months or have been consumed with a magical Mavericks' championship run like many of us at TAG Radio, here is a summary of the issues in the 2011 NFL CBA negotiations.

Issue #1 = Money
Issue #2 = Money
Issue#3-Infinity = Money

That may be a bit of an over exaggeration, but it's not too far from the truth.

What the players, owners, and media will tell you is that the CBA negotiations are trying to solve league structure issues such as number of regular season games, rookie wage caps, free agency rules, and retirement benefits. While all of these problems are relevant in the CBA discussions, they all pale in comparison to the main issue at hand -- how to split the $9 billion profit the NFL makes every year.

As the title of this article suggests, this is not intended to be a fully inclusive CBA piece but rather a quick, easy guide to understanding the NFL CBA negotiations, so below you can find a summary of how the money was split in the previous CBA followed by what the new CBA negotiations are trying to achieve:

                -Previous CBA - In 2006 the owners are players agreed in terms to a CBA which split the $9 billion profits between the players and owners 60%-40% in favor of the players. To accommodate for this 20% deficit in revenues, the players conceded to give the owners $1 billion of profit right off the top before the 60%-40% split ever occurred. This CBA worked well for the first season (2007) it was in place, however, once the American economy got roughed up in the Fall of 2008, the deal began to turn sour for the owners. Currently the owners face $200 million yearly expenses per team which are only believed to rise every year causing the owners to feel they need to receive a larger split of revenue in order to remain profitable.

                - Current CBA Negotiations - These rising $200 million yearly expenses are why the NFL is having this lockout and why the CBA is going to have to change. The owners believe they need more money and the players don't want to give any of it up. Classic case of greed. And because of this greed, the lockout has gone on far longer than it should have but we are finally beginning to see some progress. At recent discussions it is believe the owners and players are close to agreeing to a CBA which will split the money 52%-48% this time in favor of the owners, with no $1 billion going straight to the owners.

At TAG Radio we know this is a trying time for football fans, but we want you to rest at ease. This lockout will end soon and we will have football - from training camps all the way through the super bowl. How do I know? Well, I just so happen to be working for the law firm who represents the NFL Player Association (NFLPA). Do I deal with the players or give my advice to the attorneys who do? Nope. But do I sharpen the pencils of the people who do deal with the players? Absolutely. And you can bet your sweet September there isn't a dull pencil in this entire place! Because of this, we at TAG Radio feel we are literally responsible for the outcome of this lockout and we personally guarantee that it will end soon enough.

The end is near, the mountain top is in sight. I can almost hear it now, "Are you ready for some football!..."

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