Owners and players must agree to a new collective-bargaining agreement by March 4, or the owners will lock out the players, essentially suspending pro football indefinitely. Behind the NFL's recent success are stark concerns. Here are five of the most important 'sticking points' to be overcome to avoid the league's first labor-related work stoppage since 1987.
#1. Player pay-cut
National Football League revenues come to about $9 billion a year. The league says about 60 percent of that goes to player salaries, and owners say that is too much. They want to shave 18 percent off the pool of money that is used to calculate the overall league salary cap.
The owners argue that, while the league is immensely successful as a whole, many owners have gone deep into debt to finance new stadiums in the past decade – anticipating revenues that never materialized because of the recent recession. Before agreeing to a pay cut, NFL Players Association (NFLPA) executive director DeMaurice Smith is demanding line-by-line audits of teams to prove expenses are, in fact, rising faster than revenue. The NFL has so far refused, saying that it has never offered the figures to the union before.
#2. An 18-game schedule
One potential solution to the revenue-sharing problem is to expand the season from 16 to 18 regular-season games, replacing two preseason exhibitions with the real thing. This would make the overall revenue pot larger, meaning owners could cut players' share of the revenue, yet players would not see a significant dip in pay.
But players chafe at the idea of having to play more without getting a raise. They argue that starters see far more playing time in regular season games, and that the intensity level is also much higher, increasing the risk of injury. Some owners have also privately shared worries about the risks to their primary investment, players.
#3. Rookie wage scale
Another potential way to tackle the revenue-sharing problem is to introduce a rookie wage scale. Having untested players who don't even shave yet making tens of millions of dollars isn't in the best interest of the league.
Under Mr. Smith, the NFLPA has stepped back its opposition on the rookie wage scale, opening the door to pay restraints similar to what the National Basketball Association has, where each pick in the draft order has a preset salary affixed to it. For this concession, Smith wants rookie contracts to be a maximum of three years – allowing players quicker access to potentially bigger contracts through free agency. The league wants rookie contracts to be a minimum of five years.
#4. Benefits for retired players
With the average NFL player staying in the league only 3-1/2 years according to the NFLPA, and recent news coverage documenting their struggles to recover from injuries, the union will demand a retroactive benefits increase for retired players. During previous contract negotiations, the union favored money in hand versus future benefits.
#5. Personalities and intangibles
The futures of hundreds of unrestricted free agents could be thrown into doubt and hundreds of millions of dollars in salaries could be lost – not to mention public goodwill if the Super Bowl is the last game played in 2011.
NFL Commissioner Roger Goodell has said he'll cut his salary from $10 million to $1 if there's a lockout. But many players don't believe the owners are negotiating in good faith. In 2008, the owners decided to opt out of the current collective-bargaining agreement, leading players to think the owners were girding for a lockout.
Representing 1,900 players, Smith is entering his first collective-bargaining negotiation and is keen to make his mark. He is rallying players to his cause and trying to convince the public that million-dollar athletes need a fairer shake. The big question is whether Smith will blink before a lockout.
How much is enough fellas? Seriously?....Be careful Union. You might be getting-in over your heads.
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