The NFL Lockout: Following the Money

Jul 20, 2011
Cheryl Settoon

Dollars - nmy

Fans rarely see a slugfest between billionaires and millionaries, but that's the nature of the NFL Lockout, which Drew Brees says is about to be resolved.

Informally called a slugfest between billionaires and millionaires, the NFL lockout will likely be settled in time for the official NFL preseason. According to Saints QB Drew Brees in the July 14 San Diego radio station XX-1090 interview, “I think we’re very close to a settlement...we’re optimistic that

we can finalize something, hopefully within the next two weeks.”

As one of the 10 litigants in an anti-trust suit pending in federal court in Minnesota, Brees, along with NFL quarterbacks Peyton Manning and Tom Brady, is limited in what he can say about the negotiations taking place with NFL owners. The three superstars are plaintiffs in the NFL Players' Association-financed lawsuit filed against the NFL.

Yet the crunch-time date of July 21, when the NFL owners fly to Atlanta, Ga., appears to be the day the collective bargaining agreement will be hashed out with both parties.

Still, many fans and skeptics wonder whether there was ever any doubt that the NFL preseason was at risk.

After all, there’s simply too much money at stake-- specifically, $9.3 billion—enough to jumpstart Greece’s faltering economy should NFL owners and players magnanimously decide to donate their earnings.

The NFL Lockout Money Battle

Not surprisingly, the NFL battle centers around how the estimated $9.3 billion pie will be divided up among owners, players and retirees. The NFL owners want to decrease the players’ percentage from 60 to 48 percent, which economists would call “draconian.” And they’d be right.

But that’s not the complete picture. Previously, NFL owners took $1 billion off the top before the revenue split, but now it seems the players have negotiated terms including all revenue, which considerably softens the reduced percentage blow. Some number crunchers say that $1 billion just about covers the difference the players would lose with the reported reduced percentage points.

Players also want the $320 million in lost benefits from the owners who had no salary cap placed on them in the 2010 season. In addition, sport’s television contracts provide another bone of contention between NFL owners and players.

NFL Retirees Included in the Negotiations

According to the New York Times and The Associated Press in The Seattle Times, the CBA to be hammered out will reportedly include: “close to $1 billion in additional benefits for retired players over 10 years, including pension increases of $620 million for players whose careers ended before 1993. Benefits also include long-term-care insurance and additional money for disability programs."

Likely NFL New Rookie Pay Structure

The biggest losers are likely to be high first-round draft picks since the new rookie pay system will be drastically scaled back. No more six-year, $78 million contracts such as rookie quarterback Sam Bradford negotiated in 2010 with the St. Louis Rams.

Looming Free Agent Feeding Frenzy

If a collective bargaining agreement is made on or near April 21, free agency could begin next week, says the Washington Post’s Mark Maske. “Teams likely will be given a three-day window to re-sign their free agents before those players can sign with other clubs.”

Take the NFL Lockout Status Change to the Bank

Despite all the suits’ negotiations, finger-pointing and lawyer-talk, the NFL preseason is going to happen. Not everyone will be a happy camper, but in a business like the NFL where a player’s average salary nearly hits the $2 million mark, the fans may have a hard time feeling sorry for either the owners or the players.

Sources

Brandt, Andrew. "NFL and Players Getting Closer to "Yes." SportsMoney . Forbes, 19 July 2011. Web. 19 July 2011.
"Cardinals' Jay Freely: Players have never made more money ." NFL Labor News. NFL, 15 Feb. 2011. Web. 19 July 2011.
Crupi, Anthony. "Cool, Brees: Saints QB Says NFL Deal Is at Hand ." Adweek , 13 July 2011. Web. 16 July 2011.
Myers, Gary. "Now that the prospect of losing money is real, no surprise that NFL lockout almost over." Daily News: Football. NY Daily News , 16 July 2011. Web. 18 July 2011.
"New NFL labor agreement is likely to be finalized this week." Ed. New York Times and Associated Press. The Seattle Times , 18 July 2011. Web. 19 July 2011.