Wednesday, January 27, 2010
There’s a chance the league could shut down in 2011.
NEW YORK (AP) — Rich, powerful and more popular than ever, the NFL gets closer to a doomsday scenario every day.
Without a deal in the next five weeks to preserve the labor peace that has lasted since a bad month in 1987 — anybody remember scab football? — next season will have no salary cap. That means richer teams such as the Redskins and Patriots will be able to far outspend clubs such as Jacksonville and Buffalo for free agents, while the Jaguars and Bills might try to pinch pennies to stay in business.
And if no deal can be reached next season, that uncapped, maybe less competitive year will be followed by no NFL at all in 2011. Stay tuned as the nation’s most lucrative and most watched sport heads into the Great Unknown.
“It looks very bleak to get a [deal] done before March of this year or the beginning of the new NFL season,” says Titans center Kevin Mawae, president of the players’ union.
“We’re going to continue to try. ... Until we come to some terms of what’s really important and what are the big issues in this deal it’s going to be tough to get something done.
“From our standpoint right now, you not only prepare for the worst, that seems like the direction it’s headed,” Titans defensive end Kyle Vanden Bosch says. “If players aren’t prepared, if guys are in bad financial situations, it hurts our leverage as players.”
The main issue, of course, is money — despite soaring TV ratings, an average franchise value of $1 billion and even a storybook Super Bowl featuring the hard-luck Saints and MVP Peyton Manning’s Colts.
The NFL owners in 2008 opted out of their contract — called the collective bargaining agreement, or CBA — and have asked for significant givebacks from the players, including a reduction in salaries of nearly 20 percent.
That works out to about $800 million; overall NFL revenues are estimated at $6.5 billion. Those owners say the agreement that will expire next year is far too favorable for the players, who get about 60 percent of the revenues actually used to determine the salary cap.
“What we’re trying to accomplish here is to have an economic system ... that will allow us to look back 15 years from now and say that we, meaning the clubs and the players, were creative and thoughtful and laid the groundwork for the game to continue to grow,” says NFL executive VP and chief counsel Jeff Pash.
The alternative?
A work stoppage similar to 1982 and 1987, when the union went on strike. Under labor law, the union has the right to strike and management has the right to lock out.
For most of those years since the two sides reached the contract that brought the current free agency and salary cap system, mention of an uncapped season was heresy.
Now, it’s nearly upon us. It would mean:
U Players would need six years in the league before becoming unrestricted free agents rather than four. .
U Each club already has one transition player tag and would get a second. A transition player must be offer
U The eight clubs that made the divisional playoff round this year will have limits on signing unrestricted free agents under what’s called the Final Eight Plan.
U The 32 teams would be relieved of their obligation to fund numerous player benefit programs, including 401Ks, player annuity, severance pay, and tuition assistance.
U A supplemental revenue-sharing plan will be scrapped by the league, which says about $100 million is involved.
U There would be no salary floor or salary ceiling.