The biggest sports business conflict in the last 5 years has to be the NFL lockout. The NFL and its owner’s violated antitrust laws, by locking out the players In fact, the magnitude of matter forced the NFL Players Union to decertify, and players were on the verge of becoming their own independent servicer getting the best deal possible. The owner’s arrogance almost cost them more than what they bargained for. I know CBA’s, and lockouts have become a reoccurring theme in the world of sports, but one cannot overlook the corporal behind the madness. Money!
Money is the motor that powers professional sports. For instance: The NFL is quickly becoming America’s favorite pastime, and it’s showing on every owners bottom-line. However, the owners where not content with their percentage of the $9.4 billion a year industry. Washington Post Sally Jenkins reported: they opted out of the CBA and demanded $1 billion in concessions from players. They tore up their cloak because, they said, their share of $9.4 billion in revenue wasn’t enough to support them in the style to which they’ve become accustomed.
Greed and arrogance made the owners feel as though they could steer things in their favor, because of their stature, and affiliation. The owners subconsciously put themselves into an unwarranted legal position disputing the free market principles in which they operate. The players union made the right decision to decertify so they can combat the owners recklessness with an antitrust lawsuit. The longer it would have taken the union to decertify, the longer it would have took them to file suit.
Money drove the NFL to a new CBA, which appeases both parties. The owners got a percentage back, and the players got a better compensation package with revenue sharing. The new 10 year CBA entails; the owners receiving 53% of the revenue, and the players receiving 47%. According to ESPN.com;
· An increase in salaries and benefits, with the salary cap at $120 million, plus $22 million in benefits, for 2011. Owners must spend 99 percent of the salary cap in 2011-12 in cash;
· Minimum salary increases of $50,000 that will increase annually;
· New work rules and shortened offseason workouts, which are expected to result in fewer injuries and perhaps longer careers;
· Better health benefits, including more than $1 billion for post-career injuries;
· Five consecutive days off duirng bye weeks, sources told ESPN.
On the owners' side, there's:
· More money to invest as gross revenues rise; · peace for 10 years that makes it easier to work out long-term business deals
· ability to assist in the development of new stadiums because certain revenue was not
· was not included in total football revenues;
· less money to untested rookies, specifically high-first round draft picks, although that money
will be redirected to veterans.
In contrast, neither party got everything they bargained for in fact; they both lost some perks. Commissioner Roger Goodell, and the owners did not get their wish for a 18 game season. The players were not granted a opt-out clause, which is odd, because the owners used theirs to for that very purpose. I don’t know if the owners knew what they were doing, but their greed actually improved the CBA.
Reference:
Doris, K. (2011). Decertification Does Not Mean No Football. Retreieved from: Forbes
Jenkins, S. (2011) NFL Owners are Wrong and don’t get it. Retrieved 2011 from:
The Washington Post Sports.
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