Drew Brees' take on the owners' strategy dating back to 2008
This is dated. Just saw it, but I know many of you don't get to the fanshots section of the site so I imagine a number of you didn't see this. Outstanding read. Drew Brees for President. -Michael B.-
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I know, I know, I loathe even mentioning the lockout these days as much as the next person. But it's hard to argue with Brees' analysis that there is a pattern of premeditated lockout actions dating back to 2008 on the part of the owners. And, as a former antitrust lawyer, I can tell you that it's exactly the kind of evidence of monopolization that a sympathetic judge would be looking for.
12 months ago
Flying Polamalus
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Comments
Although it has spin of its own...
At least the facts about the owners’ actions are not in dispute. The owners planned the lockout for a long time…to what purpose. If you are negotiating in good faith, why do you need a lockout? Why do you need to try to kill the golden goose? Facts are that 32 greedy people are trying to “break” the union and the only resolution to folks that won’t negotiate in good faith is to go to court.
"We have met the enemy and he is us" - Pogo (1970)
drew brees is going to be a senator or maybe even president someday
not kidding. my man crush knows no ends. knew this guy was special since he was just a kid. Amazing articulation of the situation by him.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
You just FPed this because it has Drew Brees
Back on the Sweed train. Choo Choo!
"It’s easy to lie with statistics, but it’s easier to lie without them." -Fred Mosteller
i'd agree
it’s the same propaganda speculation & BS that both sides have been spitting out since day 1. and i’m not referring to the idea that the owners have been planning this since march of 08 (that’s a no brainer). i’m talking about bringing up upshaw’s death.
Wonder how many people beyond the players are on the payroll(and how much they are paid)
Wonder how much is paid for stadium maintenance
Wonder how much is paid for travel in a year
The list goes on and on and on
Wonder how much the owners, you know those 32 greedy people as someone said above me, have to pay before they reap the benefits of the players.
Wonder what those 1600 odd players would be doing or should I say making if it wasn’t for those 32 greedy people.
Maybe, if the players union would offer to pick up half the expenses (travel, payroll-other than players, health care expenses, insurance, etc.) , those greedy owners would consider that 50-50 split equitable. Just a thought.
Thank yinz fer listin'in
well
The players’ don’t get stock options or equity in the team for their performance.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
like it or not
i am amazed that anyone has the balls to “dictate” how much an owner should be paid on his investment or how much he can pay his employees. did you ever tell the owner of your company how much they are “entitled” to make? i understand that some of the owners may be very greedy people but so is every business out there. since when did anyone complain about apple being too greedy and not lowering prices? (they have $65 billion cash on the books>> this is over 6X NFL total sales in any given year).
in this country you have no right to tell the owner of a private enterprise what they can do unless it is against the law. that’s the way capitalism works! our choice is to buy or not buy that is the extent of our rights. if you want to change that then you have to revamp our whole economic system.
you want to say owners may fight dirty and they are greedy. i agree! but they have the rule of law on their side if they want to pay players $100/game that is their right. of course they will destroy themselves in the process but that is also their right. no one has the right to tell an owner of a company what they are entitled to make. only the market can decide this effectively. gee, i think gas should be fixed at $2/ gallon that would help us consumers out a lot.
this is just ridiculous.
i hear you
But there’s one thing you’re forgetting man. I had a 45 minute conversation about this with 5020 today on the phone. Business is business, I hear you 10000%, but these owners are getting to fund LAVISH lifestyles with this football money, they’re (2) going to be able to cash out in the billions one day or be able to pass on a incredibly valuable and appreciating asset on to their children if they decide to not sell and (3) they get to OWN AN NFL TEAM!!!!!
I hate to go down that road, but seriously, you hear players talk all the time about making a living playing a game they’ve loved since they were a kid. Now, think about being an owner and it’s the same sentiment X 1,000,000,000. You get to be a part of the game you’ve loved growing up just like the players without all the health hazards, you get to manage a big group of men that are (mostly) all on the same page trying to win SB glory under your ownership (like fantasy football on steroids), and you get to hobknob with the best athletes and the most deep pocketed corporate sponsors on the planet.
CRY Me a FUcking River. Lots of these guys worked their assess off to get to where they are today, but nevertheless, not EVERY last activity in a cut throat person’s life has to be treated with the same slavish commitment to the spreadsheet and bottom line.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
i hear what you are saying
our system creates people like warren buffet and bill gates who have already pledged their fortunes to charity. but no one is going around telling them they have to do it.
both the players and owners are privileged to be involved in the NFL, but they earned it.
just like i would not tell the players to take a dime less than they feel they are worth, i would not tell the owners that making a $5, 10, or $20, or $100mm operating profit is enough.
Do you?
Why is it wrong for the owners to make money?
Why don’t the players band together and make their own League? Are they not the ones who have the owners by the scrotums? Or maybe they have some insider information on just how complicated running a league would be and would much rather take money from someone who is willing to have the headaches of running a league in hopes of making some money.
i don't think bean is against the owners making $
i am guessing he was just having a bad day and maybe he over reacted a little. the owners have every right to make money just like every other business owner in the US.
and if they want to be cutthroat like warren buffet and amass a $50 billion fortune then until we change the laws they have every right to do it.
the players have every right not to sell their services for anything less than they believe is fair. they have every right to start their own league but they don’t have the capital and could never get it and would have to start small and build up. like minor league baseball they would be playing for fun and not really earn enough to live on.
this is what makes a market, we are just stuck on the outside looking in. and it is frustrating to everyone.
im saying they're seriously the luckiest bastards on the planet
They own NFL teams. Being the President would suck; too much work, never can please everybody, everybody wanting something, favors always having to be repaid. CEOs of corporations — nice life, but still, they’re excess and ruthlessness really does hurt people. NFL owners? Ha! They just make millionaires out of thousands of young ambitious men who toe the company line for them; they get to ‘compete’, they have hundreds of millions of people loyally obsessed with their product. IT"S FUCKING HEAVEN ON EARTH. Leave a few dollars on the table in order to keep the game going, fans obsessed, young athletic men hungry to be the best athletes on the planet. Period.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
by Michael Bean on Jun 10, 2011 1:49 AM EDT up reply actions
i have no problem with this
but you could just as easily say it about either side. if both sides were really willing to kick in then a deal could be done very easily.
How is it any different for the players?
They are paid a lot of money to do something they’ve wanted to do for their whole lives. They become heroes in the hearts of people everywhere. Yet the owners are the only one’s who are at fault here? In much the same way it’s “FUCKING HEAVEN ON EARTH” for players
i dont think it nearly compares
The violence, the physical demands, the shelf life of careers. Owners shelf live is decades, the money is better and they get the same ability to compete and be a part of a team without any of the risks and downsides.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
by Michael Bean on Jun 10, 2011 8:12 PM EDT up reply actions
this is complete bull by brees and a low blow
the owners opted out of the past cba a full 3 months BEFORE upshaw was even diagnosed with pancreatic cancer. if this is the case, then how can brees explain the attempted take over matt stover tried to pull to take upshaw’s job away even 2 months before the owners actually opted out because the writing was on the wall that they would? upshaw obviously planned to see the deal through.
http://sports.espn.go.com/nfl/news/story?id=3545830
http://sports.espn.go.com/nfl/news/story?id=3404596
the nfl also hired batterman 5 months before upshaw was diagnosed. yeah, it’s obvious the league was planning a lockout but they were planning it BEFORE upshaw’s death.
this is just a ridiculous accusation by brees and frankly i’m disappointed.
ha
That’s one point of four or five key elements to Brees’ arguments. Furthermore, you think Brees might have a bit more insider info about that than you?
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
no
I’m saying you’re speculating about the timeline. He might be fudging the facts a little bit, but he also might just know more than you about what really shook out behind the scenes.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
by Michael Bean on Jun 10, 2011 1:45 AM EDT up reply actions
nope
considering even matt stover said he was surprised by upshaw’s death, and he was leading the charge to have upshaw replaced earlier that year. plus, i think it’s far more likely brees would be skewing the facts to get public support for his side than espn & every other news site be completely wrong of when upshaw was diagnosed. the other points i don’t contend with because i think it’s very obvious the owners were planning a lockout.
regardless, that single point is the whole reason for my comment. to say the owners are only doing this because a person died is a pretty inflammatory thing to say and beyond just “fudging” the facts. furthermore, brees is doing similar things now despite the fact that both sides are agreeing to sit down to negotiations again. he took a little shot at the owners which isn’t going to help things at all when progress is being made. yeah, the owners are the ones who locked-out out the players, but players were the ones who walked away from the negotiation tables without even making a counter offer. this entire problem goes both ways.
he’s been drinking the demaurice koolaid too much.
we are all ignoring human nature
the more $ you make, the more you want. rich people are greedy, so are poor people. everyone in the world is greedy to some extent.
if you have a 4,000 sq. foot house but your buddy has an 8,000 sq foot house with an indoor pool and theater you want that too.
if you were an NFL owner and you were making a net profit of $5-10mm/year would you be satisfied? if you could get $5-10mm more/year by cutting players pay wouldn’t you do it? be honest with yourself.
if you were paul allen with $18 billion you wouldn’t care b/c it is a trifle amount. but if you are richardson who is worth $100mm $10mm is real $ to you and it may be the difference between you keeping your team, damn right you’d do it.
everyone wants more, because it is all relative. why would you think the owners are any different then the rest of us?
dude
We get that. Seriously. But diversify your thinking and understand that it’s okay and not unnatural for very wealthy blessed people to not adhere to that principal in EVERYTHING. Surely you know who Warren Buffet is – um, he is all for huge capital gains taxes on the rich. That;s just one of tons of examples of how ruthlessly cutthroat competitors understand that there’s not just one gear or philosophy to be stuck in at all times.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
warren buffet is great
and he is one of the few billionaires who are for increasing taxes on the rich, many rich people say “it is easy for him to say b/c he already has his $50 billion but was he saying that when he had $50mm?”
warren buffet is ruthless to his employees, he never bothers you until you miss your numbers 2X then you are gone faster than you can blink.
is your point that super blessed people should just pay their employees whatever they want? i don’t get it?
But the fact
that the NFL took any of these actions does not say anything about the fact that they WANTED a lockout. The owners opted out because they thought the deal was unfairly weighted to the players. I don’t see how that’s a big surprise seeing as we are currently well into a lockout based upon, you guessed it, the owners trying to get money back. The remainder of these actions, to me, suggest the owners were planning ahead for the possibility of a lockout if the players would not accept the reduction of their share in the new CBA. Trying to get the American Needle case through is just good business. If you have the potential for a broad ranging exemption from something that could potentially come back and bite you in the ass, tell me you wouldn’t. To me, all the actions Brees talks about can equally be referred back to the NFL planning ahead. Its’ really just smart business.
To me, it makes no sense that businessmen would WANT a lockout. It makes no sense. A lockout is inevitably a tactic in a negotiation. To say a side WANTS it is, in my opinion, ridiculous. You use a lockout to try and get the other side to make a deal.
but these owners are getting to fund LAVISH lifestyles with this football money
I don’t know that I agree with that. In some cases, the owners have bought and funded their teams, and these lavish lifestyles with other businesses and the football team doesn’t contribute a whole lot. In others, I don’t agree that owners live lavish lifestyles.
But beyond that, that’s how it works in business. The owners took and take the financial risks of the business. The basis of most corporations is the one who takes the financial risk ought to take the financial gain. The owners put in a lot of time and money to make their team and, by extension, the NFL, what it is.
I agree that it shouldn’t be that every activity is associated with making money, but sadly it is. I don’t see how the players are any better in that sense though. They’re suing in a Court over the fact that they want 50% rather than 47% or whatever it is. To say the players are ‘making a living’ may apply to some of the lower paid players but every one on the Brady lawsuit (sans probably Von Miller) could already be a rich, rich man based on what they’ve made. I tend to have limited sympathies for guys who make millions a year and can’t save properly. That’s no reason to punish the men who paid them extraordinarily well for several years
You are factualy incorrect on so many things it makes my head hurt!
To me, all the actions Brees talks about can equally be referred back to the NFL planning ahead. Its’ really just smart business.
Since you, of course, were involved in all of the owners meetings, you know that they were only planning for a potential lockout, not a planning for a actual lockout as they told everybody they were planning to do if the players didn’t sign a new CBA
"We have met the enemy and he is us" - Pogo (1970)
^Reply Fail...
Dang computer (operator)! LOL!
Way beyond my tech skills!
"We have met the enemy and he is us" - Pogo (1970)
factually incorrect on so many things
and then you basically repeat what I am saying. Of course the owners were going to lock them out when the players didn’t sign a CBA. But that’s not saying they wanted a lockout, just that the NFL planned ahead for a potential lockout
too many people on this thread are missing the point when siding with the owners
I’ve read several comments about how these owners should get all they can and that it’s their right. Many implied that there is no reason they can’t run their league in the same ruthless fashion they ran companies to build their wealth and become owners in the first place.
The point that seems to get missed on the ones I’ve read is that, unlike in the owners’ other companies, the league has an antitrust exemption! Seriously – this doesn’t map into the real world business model at all. In the real world if a CEO wants to cut pay on his employers or show them the door, he can’t make an agreement with every other CEO in the industry to do the same effing thing in order give the employees no choice but to except it! If you’re a mechanic and your boss decided you needed to take a 20% pay cut you have a choice of either excepting it, or going to another gas station to see if they’re hiring and possibly wind up with a raise instead of a pay cut. If every gas station owner decided to get together and set the pay scale for the entire industry then they would wind up getting busted.
If you think the owners should have the right to treat the players like any other employee in a real company, then first they must give up their antitrust exemption. Then if they tried having a meeting to determine what the pay scale would be the next thing they’d be doing is making license plates.
If the antitrust exemption is lost, then there would be no draft, no salary cap (or floor), and no league basically. It would be 32 teams running independently for their own gain with their own tv contracts etc. There also would be nothing to stop another billionaire from starting his own team where he saw fit, buying the best players, and negotiating a schedule with other teams (unlike the current exclusive good ole boys club that exists now). The current owners don’t want that to happen, so they have to play by the rules that keep them under the exemption.
Legally, I don’t see how the court can rule in favor of the owners. If they do then the antitrust laws become completely worthless and it opens the doors for other industries to completely ignore the laws on the books. Of course, we all know that other CEO’s who currently are giving themselves $100M bonuses while cutting benefits and laying off employees would never be so greedy as to try locking down the job market for the rest of us if that happens… of course they wouldn’t.
if the player's anti-trust suit gets to trial
get ready to bend over b/c we will already be looking at an 8 game season for sure. the first court date is august 29th. if the players want to go thru with it to verdict then we will miss 2011 and possibly 2012 season b/c this case would have to go to the supreme court. if the player’s win the anti-trust then the NFL will be forced into a model something like baseball, there really is no other option.
the NFL is more like an oligopoly, 32 businesses operating towards very similar goals. they have anti-trust exemptions for things like TV revenue because it makes more sense to do it centrally than have each team make their own deal. but the insurance industry has anti-trust exemptions too and they still set their own wages.
anti-trust exemptions don’t mean you have to run your business as a non-profit. anti-trust doesn’t mean you have to pay your employees 40%, or 50% or 60% of revenue that is still up to you. now if you want to regulate pro football thru the government then you can throw all kinds of rules on them. but do you really want OSHA in there reviewing their safety practices, or the treasury telling them their wage scale. wouldn’t this would be worse than goodell?
also don't forget
anti-trust allows the players to negotiate league wide for a wage pool, otherwise each player/agent would have to negotiate individually with the owner. some owners might be willing to pay way more than 50-60% and lose money like mark cuban or paul allen do in basketball. but other owners might only pay 40% of their revenue to their players. this means that maybe the top 20% of stars do much better (like a-rod $33mm 10 yr contract) but most will get the shaft especially the replaceable players. remember anti-trust is also the reason there is a league wide minimum salary of $325k, without that owners could pay $50k
so there is no question anti-trust helps most NFL players too it is not just an owner thing.
A few points on the situation.
1. The owner’s did plan the lockout. Whether they needed to or they are just greedy, it is pretty clear that the owners have had this year picked for this fight for a while.
2. The TV contract timing is not a coincidence. The reason the time for the lockout is now is because of the new TV contracts coming. That increase of revenue will make any tough fights harder, they have to fight this out before those contracts are up.
3. You can interpret these steps multiple ways. The main two seem to be:
A. The Players are making too much and are going to destroy the NFL at the current rate.
B. The owners are greedy as heck and want to get all the new money for themselves.
4. Right or wrong, the players see the owners actions (esp. the guaranteed TV money and refusal to reveal in depth financial information) as evidence that the owners never intended to negotiate a settlement but always intended to strong-arm the union with a lockout.
5. If the union believes that the NFL is trying to break the union with the lockout, and has been planning it for up to a decade or more, then the legal action really looks like the only recourse. If they lose the legal action, and the union faces being broken, disbanding the union and not re-certifying is the doomsday last ditch threat to save the players.
6. Again, I’m not saying any of this is true, I’m saying that this is how it looks to the players, and if they believe it, their actions make sense.
From the fans perspective this all is just a stupid mess; and that could very well be the truth. Players are making a ton of money, owners have seen team values skyrocket. Furthermore, both sides are doing some flat out dumb things.
The owners were stupid to try to slip that guaranteed money into the TV contract, that their lawyers thought that would hold up, or that it wouldn’t be a PR blunder is baffling to me. It’s just a bad move and gives the players claims weight. The players have also made dumb moves. Walking out and not working more for a compromise (even if the work was futile) gave the owners claims that the players intended to sue all along weight.
The real question to me is whether they can actually solve the NFL’s finances. In any co-operative endeavor where a smaller revenue business is required to spend similarly to much higher revenue businesses there will always be problems. The more the Cowboys make the larger the gap gets, since the cap and floor are based on league revenue small market teams will suffer more and more as the big market teams make more and drive up league revenue.
Increasing revenue or decreasing payroll helps band-aid the situation, but eventually we will be back here, unless they find a way to balance the revenue of teams or change the entire financial structure of the league so that individual teams obligations aren’t tied to league revenue.
take a look at my recent post
and it re-inforces your point even more about the NFL business model. essentially the lower revenue teams are paying the teams with higher “unshared” revenue their portion of the players 50% of total revenue.
the entire structure has to be changed b/c unshared revenue is growing too quickly.
this just emphasises my point that this lockout is really not on the players
The owners don’t want to open their books and share their profits with each other. The players would be willing to take a cut if it was shown they need to, but without opening the books they would have to take it on faith that the league really is in trouble. I know you’re on the owners side from all of your posts, but what makes you think they aren’t duping you too? Oh poor me I’m losing money (so they say). Well open the dang books and prove that they aren’t crying poverty while stockpiling profits in secret then. It’s not like there isn’t a glaring recent history of executives in all companies taking profits and screwing stock holders and employees. It’s impossible not to see that on any day by opening the paper. What makes anyone think that the 32 golden boys are any different?
wrong i am not on the owner's side
here is the problem, if the player’s want to still get 50% of league-wide (this includes luxury box, naming rights, etc.) then the salary cap/floor cannot survive in it’s current form.
i feel for the players and wish they could get even more and they did not create this problem. but if the fans want to keep the salary cap/floor similar to it is now then the players are going to have to take less.
let’s just say that the owner’s caved tomorrow and agreed to the NFLPA last offer. this doesn’t solve the bottom 10-15 owner’s problems because the giant/jets with their new stadium are going to slap another $5mm onto their every team’s payroll with no additional revenue to pay for it. now 5-10 of the “worse off” owners are losing money.
you can easily tell from the packers (who have a decent amount of unshared revenue for the size fo their tiny market) are not that profitable. in 2009 they had a net profit of $5.8mm, this is peanuts for $257mm in revenue.
i don’t need to see the owners books to know that the lions are TOTALLY getting screwed. there is no way they can make $ and the owners as a group are letting it happen. no one is duping me, it’s just basic business sense.
BOTTOM LINE: for the player’s to keep getting their 50% of total revenue (shared and unshared) then the current salary cap system has to go. these two thing cannot work together, it is impossible, like 2+2=7.
so their are no real good sides here, if the players get what exactly what they want, the current salary cap system is doomed within 3-5 years. this negotiation is not a win-win, somebody is going to lose, either the owners, the players or the fans.
here is the kicker
based on the average team revenue for 2009, each team had $250.5mm in revenue (this is net of stadium debt) but it doesn’t matter for these calculations. so the players essentially get 50% of total revenue thru the salary cap mechanism regardless of which team makes the revenue.
so the three highest revenue teams (cowboys, skins, pats) had exactly $339.5mm above the average revenue. that means that a team with $250mm in revenue had their salary cap/floor raised by $10.61mm to get the players their 50% share. so essentially the 29 other teams paid $307.67mm in wages to the players for revenue that the big 3 earned.
the steelers essentially paid a tax (in the form of increased payroll) of more slightly than $10.61mm (because they were under the league average) to the players while the top 3 teams got to keep their revenue/profits. cowboys, skins and pats dumped 90% of their contribution to the increased salary cap while getting to keep 90% of that revenue for themselves. how come i never get deals like that?
hehe
seriously.
Thanks for all the info and analysis and opinion on this stuff. Not sure what you do, but you obviously are in business/law/something where numbers are crunched and the stakes are at least reasonably high. check out the lockout article i linked to in the six pack published just recently.
Freel free to email me anytime at behindthesteelcurtain@gmail.com with questions, suggestions, complaints, etc, or to just say what's up. -Michael Bean (Blitz)
by Michael Bean on Jun 11, 2011 1:57 AM EDT up reply actions
i hear there is progress in the talks
that the players and owners are close to an agreement in the 48% range of revenue for the new CBA. this is what john clayton said on ESPN. i think it is going to be closer to 47% b/c this would lower each team’s floor by slightly over $10mm. this basically covers the $5mm subsidy the league is paying to the cowboys, skins and pats and leaves another $5mm left over that drops to the bottom line.
while not addressing the real issue, this will allow the teams at the bottom to make at least a $10mm operating profit. hopefully, the owners agree to work on the current revenue and salary cap model too so we don’t have one side opting out again in 2 years.
actually there is a clarification needed
players only get 50% of revenue, so the numbers above for the coboys, skins and pats) are revenue of $339.5mm so the average team would only see their salary cap go up $5.3mm based on these 3 revenues. but nonetheless they are getting the other teams to pay 90% of payroll costs about $170mm total that is due to the unshared revenue they made.
this is the reason the big 3 are pocketing 29% of the total league’s total operating profits. it makes total sense because only 1/32 of the salary burden of this unshared revenue comes out of their pockets to pay the players, it is almost pure profit.
the NFL does not have revenue sharing model for unshared revenue but they do have an expense sharing model. it’s always the little guys that get the shaft!
it took me today to really figure it out
it just didn’t make sense that all the lower revenue teams were so unprofitable until i confirmed how they come up with the salary cap. i didn’t think it was possible because it made no sense. i thought a portion of unshared revenue never got into the player’s hands. i still can’t believe this is truly how they do it!
and i read the legal info and it was very good (albeit a little scary for the parity of the league) and if found something very good written by a professor from PSU and that got me to write the fanpost " the nfl revenue model is all f***ed up". i came across the post from the dallas poster months ago but i thought he was wrong b/c it made no sense but then when someone wrote a response to why my revenue #s don’t add up i started looking around and stumbled across this PSU proffesor. it confirmed what the cowboy guy was saying and it was just too good to pass up. it’s no wonder there is a lockout, the NFL has never really addressed the issue and now this unshared revenue is really killing some of these teams (especially the lions who only have $210mm rev). it’s just so screwed up you have to laugh.
here is the link to the PSU Professor and he goes into great detail about how teams make $ and where some possible solutions to the lockout could come from.
More Like the United Nations Than McDonald’s: Economic and Policy Aspects of the NFL Labor Dispute
by kk99 on Jun 11, 2011 2:23 AM EDT reply actions 1 recs
Great article. The best explanation I’ve read.
by Phantaskippy on Jun 11, 2011 1:20 PM EDT up reply actions
i now believe
that you have to let the higher revenue teams have higher salary caps along with some type of luxury tax like you suggested before. the nfl parity is great but you can’t have the big 3 making the revenue and sticking the expenses with everyone else. you need for revenue to match expenses.
BUT the players also want their 50% share which probably cannot work for more than a few more years. when another $300mm revenue pops up because of the new NY/NJ stadium then the bottom 5-10 teams will all be losing $.
to keep the players near 50% pay and make it palatable for the lower revenue teams it is necessary to change the salary cap structure. their is just no other choice, already 70-75% of revenue is shared equally. you might be able to bump that 2-3% higher but that’s about the max without a massive fight that makes the current lockout child’s play.
another option is to let a portion of the unshared revenue not go to the players by excluding it from salary cap. this lowers the subsidy going to the big 3.
if the players are willing to take a 2-3% wage cut then the current salary cap model can maybe survive for 5-10 more years. if they are not, then a new model will have to come out of the current CBA that better matches expenses to revenue.
I like the MLB model largely because it let’s the market decide players pay scales. No floor, just a soft cap. I think it would be perfectly justified to tie a salary floor to shared revenue, you want incentive to make money as well as pushing the teams toward each other competitively.
As for how long the current system can last, TV revenue increases may delay the inevitable rehashing of this situation, almost doubling shared revenue will do a lot toward lowering the impact of the increasing gap in unshared revenue. If the economy improves soon it could last 20 years if the NFL keeps popular enough. Further economic downturn could exacerbate the situation in cities hit hardest.
by Phantaskippy on Jun 12, 2011 10:35 AM EDT up reply actions
yea, i could agree
b/c for unshared revenue to jump you usually need a new stadium in the right kind of market. this drastically slows the jumps in unshared revenue b/c without a new stadium or rennovation it is not that easy to sell naming rights, etc.. we have to see how much the giants/jets revenue jump over the next 1-2 years b/c of their new stadium. also, if cowboys stadium can generate a lot more revenue (i don’t think he has sold the naming rights) or the $420mm number would be higher if it weren’t for recent economic conditions.
i would agree with the increased tv revenue but i think the unshared revenue is growing even faster and will accelerate even more.
really, the jets/giants revenue numbers will be the key. not only will they stick the other teams with higher salary caps it will be a good indicator of what a top market is capable of in terms of revenue. if they are doing it right, there is no reason they shouldn’t be able to double dallas jump in unshared revenue. we will know in late august when the revenue numbers come out.
































