Free Agency is the Key to Labor Unrest in the NFL
I am always surprised when I hear fans say one of the following statements
" Players are overpaid", " No one is worth Millions to play a game", " The players union is wrecking the game", or "The players should take less during a recession". In the real world the players and owners have agreed to a salary cap for each team. Players have given up rights to be free agents. Owners have agreed to split the revenues with the players. If revenues decrease then so do players salaries. All has been well for 20 years. Revenues are still increasing. The league is making more money than ever. But the owners feel that the future is not going well for them. They want change.
This isn't going to be a Bash the Owners article. It is meant to identify the largest source of disagreement between the owners and players. And believe it or not it is not the Salaries of the players. More after the jump.
This post is a copy of the identical post I put up on the Mockingthedraft.com site. here on SBNation.
Finding a really good NFL player is difficult. There are over 7500 college division I football players at any one time. And one quarter of those turn over every year. There are only 1,800 NFL jobs available and those players turn over at a rate of around 400-500 per year. But of those 1,800 NFL jobs there are only 700 starting positions. And those players are hard to find. And they don't turn over at the same rate. They are special players. Very Special.
That is why the first round of the draft pays so much. Those selected are evaluated as having starter potential. 32 players in all. And of those 1/2 will not start. These are just facts. It shows how extremely difficult it is to find quality NFL players. Those special players have value. A lot of value. You pay a lot of money to support your team. You want to root for special players. They make a team special.
When an owner finds one of those players he does not want to let him go. In most businesses an employee signs a contract to work for a company and has the right to leave ( with certain limited anti-compete clauses) that employment, for more money elsewhere.. But when all the employers are a group under a common banner (NFL) it serves the group well if players are not allowed to flit between teams asking for more and more money. This has nothing to do with talent or worth, it just becomes good business not to raise the price of the most talented people.
Under the laws of the United States it is considered illegal to limit a market or employee rights or to set prices as a business group. The laws that were written to protect the public from this behavior are called the anti-trust laws of the United States. The NFL must abide by these laws. All of the NFL's labor contracts violate this law. Basically it is illegal to keep players from being able to shop their services in an environment that isn't clouded with collusion between the owners. Major League Baseball when presented with this problem years ago simply went to Congress and was awarded an exemption to the Anti-Trust laws. No other Sports Franchise has this distinction.
Now there is one exception to the anti-trust rule. If a group (NFL) and its employees ( players association) agree to a contract that violates the anti-trust laws then it is OK because everyone is agreed and everyone had the same bargaining power. In other words, the only reason unrestricted free agency isn't the absolute norm for every player who's contract is up is because the owners and players association agreed to it. Without the CBA (collective bargaining agreement) owners will face unlimited unrestricted free agency, no franchise tags, no transition tags, and Triple Damages for any and all damages caused to individual players after the CBA expires. This should end up costing the owners more in salaries, fan backlash, and legal costs than any money they save by operating without a new labor agreement.
This is not news. It is the same fight that caused all the labor unrest in the NFL for the last 25 years. But it seems like the players never get credit for giving up their right to a free market. For giving up their right to be paid what they are truly worth each and every year of their short careers. The players gave up that right in exchange for a 60% of the revenue of the league. They also agreed to minimum salaries of players and benefits to retired players that have been injured. If revenue goes down, So do the players contract amount. This 60 % figure is what the owners have been paying for the last 20 years. Players salaries have never gone down. Why? Because the owners revenue have never gone down. A salary cap and free agency restrictions have more to do with limiting salaries than anything else. Both of these are the key items that the players gave up when they signed the contract.
The owners should be very afraid of the CBA terminating March 4th, 2011. At that time the players and owners will be at a standstill over basic employee rights. Certain owners will be able to spend all the money they have for special players. Certain owners will spend very little and put little of their profits into players salaries. No minimum salaries will mean that marginal players will be paid way less than the current minimum.
The players are in danger, retired players are in danger, and the league is in danger. It wasn't pretty 20 years ago and it won't be pretty this time.
This FanPost was created by a registered user of The Daily Norseman, and does not necessarily reflect the views of the staff of the site. However, since this is a community, that view is no less important.
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I agree with what you've said 100%
However, other than greed I would like to see what the owners are putting forward as the reason they feel the need to change something that has worked well for so long. If they never put up compelling evidence that there is a problem with the current way things are going then I would have to say shame on them. However, I simply don’t know enough as of yet to make a call on this.
However, the scarcity of information coming from the owners about this issue is a tell tale sign that not all is well with their motivations. Personally, I don’t mind it as it stands, seems to me every one is pretty much working through things as they should be, and the league has pretty much taken over as the dominant American sport in part because of it.
Also, in terms of working through a recession, if it was affecting the NFL’s bottom line then it would also affect the players bottom line, basically the percentage takes care of market fluctuations.
It's a lot easier to love the Vikings when they win...
Thanks for the compliment.
No one is sure about the owners position just yet. The players get no revenue from stadium luxury boxes and some other Stadium revenue. Yet the owners are saying their cost on new stadiums is rising so fast that they can’t survive paying out the 60% of other revenue to the players.
The players responded “OK, show us your books and prove that.” The owners said " NO". But you can see the public books of the Green Bay Packers.
Just yesterday the League announced a new deal with Verizon. 180 Million per year to broadcast the Red Zone Channel on mobile devices. The players don’t get paid on the first dollar of revenue. A certain amount is untouchable and used to promote the league and its NFL network to grow the pie. Looks like that is working.
My personal pet peeve is the fact that the owners use taxpayer revenue to build the stadiums. And then complain that they are to expensive for them to make any money.. What the Heck is that all about. As a Viking with a stadium issue this does not make sense to me.
Winning is not everything but it sure feels like it sometimes
by lifelongvike on Mar 10, 2010 12:43 PM CST up reply actions
Yeah I agree on that as well, however many owners do put cash down on the stadium.
Wilf was looking at what couple of hundred million dollars? How many years would minnesota have to play before it pays off that investment?
It's a lot easier to love the Vikings when they win...
Kind words, but not true. Journalist make things interesting. Me. Kinda boring.
Winning is not everything but it sure feels like it sometimes
by lifelongvike on Mar 10, 2010 2:59 PM CST up reply actions
Yeah but your opinions are based on actual facts
You’ll never make it as a reporter with that kind of attitude.
It's a lot easier to love the Vikings when they win...
What was I thinking. Basing opinion on facts. HMMM. Novel concept sometimes.
Winning is not everything but it sure feels like it sometimes
by lifelongvike on Mar 10, 2010 3:31 PM CST up reply actions
Greed
Great post, LLV, thank you.
While motivations are always difficult to be certain of, I suspect the NFL’s treatment of the William’s Wall is at least in part aimed at being able to intimidate the NFLPA and force better terms at the bargaining table. The interest at support that the NFL is receiving from the NBA, the MLB, and the Olympics Committee, strongly suggests that these issues and concerns go far beyond the situation of the Minnesota Vikings.
I was thinking that the Viking’s stadium issue is really just an extension of the root cause; greed on the part of the NFL. The other NFL owners want the Vikings to get a bigger stadium because the Vikings’ revenues aren’t on a par with the average of the other franchises’ revenues. Fair enough and understandable, it’s a business and they’re in it to make money.
Their business depends entirely on the support of the fans who buy the tickets, who clamor for broadcast coverage, who support their teams. In this bid to make more money, they’re willing to sacrifice an entire fanbase that’s been well established for almost 50 years, in order to possibly make a few more bucks in a venue which they’re well aware has a lifespan of only a decade or so of profitability. They expect that, after being screwed over, in a few years they can extort that fanbase for a new stadium because then the people will be starved for their own team and be willing to pay any price to get a new one. Granted, this is conjecture, but it seems to fit the pattern of the NFL’s behavior in the last few decades.
On the other side of the coin, you have a group of very vocal state citizens who feel that paying anything to support an NFL team is too much, even when it means that they’ll create building jobs, maintanance and vendor jobs, be able to host major state events and bring in huge regional, national, and international events for the next 20+ years. Despite the boost to their own economy, their state’s brand, and the inestimable value of civic pride (for those who remember what that is), they will still quibble over the almost negligible cost building the new venue.
In the middle, the ones who get hurt the most by all of this are the sports fans. We’re the ones who make the positive impact possible, we’re the drivers of the prosperity that the NFL, it’s players, AND the non-fan citizens of the state will be able to enjoy for future decades.
Ah, ah,
We come from the land of the ice and snow,
From the midnight sun where the hot springs blow.
The hammer of the gods will drive our ships to new lands,
To fight the horde, singing and crying: Valhalla, I am coming!
SKOL!
Interesting take on the stadium issue.
I think the important part to remember is that the owners don’t share the stadium proceeds from luxury boxes and non-football events with the players. Since they save 60% they want all the stadium revenue they can get. I understand that and its fine. The players have no problem. I certainly understand why some taxpayers object to making a Stadium owner more wealthy. Your points as to the value being more than just a Stadium are well spoken.
But as to moving a franchise. Let’s say I owned ten McDonald franchises. When McDonald’s has now started putting in McCaffe’s for more profit. But I decide not to upgrade my franchises to a McCafe. Its my right to do so. But it hurts McDonalds since they get a percentage of my gross as a franchise fee. McDonalds will be doing everything they can to upgrade me or get a better Franchise owner in there. To me those are only good business decisions. The NFL would rather add new franchises to the league and never move an old one. The owners get to split the new franchise fee ( 1 Billion dollars) between themselves. They get very little when a team moves.
As a Viking fan it seems we are getting picked on but sometimes there is a cost to being a small market team. I think we will figure it out.
Winning is not everything but it sure feels like it sometimes
McCafe's don't have a playoff system or the need to schedule games on Sunday.
Hardly anyone in California cares about how many McCafe’s there are in Minnesota.
Anyone in Minnesota thinking NFL teams do not move is already on the highway to hell.
Ask people who were living in Cleveland in 1995 and then later watched the “Ravens” win the Super Bowl about whether NFL teams actually move and what was being said in 1995 before a thing called reality cruelly interrupted the public opinion polls. I heard countless fools tell me the Browns would never leave or Art Model has too much invested in Cleveland, blah, blah, blah… Then they woke up and read the news today, oh boy…
There were no Browns from 1996 to 1998, and there have been only two years with winning seasons for them since. Building a new football stadium was not any cheaper after the horse had left the barn. That crappy coach the fans had whined over (Bill Belichick) never looked back and said, “Gee, I really miss Cleveland.”
You get what you pay for.
Minnesotans didn’t invest in a football stadium enhancement when Ventura was refunding the state surplus, and are not inclined to do anything in that regard now.
The rocket is on the launch pad and the countdown continues.
If you snooze, you loose. People currently buying Packer jerseys in Minnesota have a better plan for the future than most Minnesotans do.
When they tear the Metrodome down, the sign outside should say, “Your tax dollars are being buried here.”
Elgar, a post not written in your eclectic style? But a very clear message.
I think you and I agree. My McCafe example ( a poor one I admit) was to prove that good business tactics on the part of McDonalds or the NFL are expected. And good business for them is to either get the Vikings “up to standards” or move them to a better location.
I don’t like it but it does seem to be the reality of the moment.
Winning is not everything but it sure feels like it sometimes
by lifelongvike on Mar 12, 2010 1:52 PM CST up reply actions
I hear what your saying
and while I do have a hand covering one of my ears the other is still listening.
Personally, I think there are other teams that would be moved before the Vikings are. I know the Met is the lowest earning stadium in the league, however Jacksonville has problems that the Vikes just don’t have. They have a much better stadium, however, they end up giving large chunks of their tickets away and covering seats so that the games can be watched inside the black out zones. The Bills are a small market team that is also having issues, however, they are being proactive about it and working on getting Canadians into the fan base by seeing if they can play some of their games north of the border. The Rams, well yeah they are also one of the teams on the block.
So while I know there is a real possibility of the Vikes being moves I don’t know if they will be the first team looked at to be moved by the NFL for financial reasons alone.
A guy can hope no?
It's a lot easier to love the Vikings when they win...
Its not just the NFLs call.
If you had the chance to buy a team for the LA market would it be the Jags or the Vikes? It depends on which owner says “make me richer” first.
Winning is not everything but it sure feels like it sometimes
by lifelongvike on Mar 12, 2010 2:53 PM CST up reply actions
also McCafe doesn't just want to move the Vikes he wants a stake in them as well
So I guess that has to be taken into consideration as well. Oh and I would take the Jags. Who would want to move an icon to football like the Minnesota Vikings.
It's a lot easier to love the Vikings when they win...
Isn't it time for you to cover both ears now?
Winning is not everything but it sure feels like it sometimes
by lifelongvike on Mar 12, 2010 3:02 PM CST up reply actions

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