Thursday, April 21, 2011

Collective Bargaining and the NFL

For the first time since 1987, the NFL is facing a lockout, which means that there could possibly be no football for the 2011 season. And I do mean no football. No Sunday afternoon games, no Monday night games, and no Super bowl. How and why did we reach this point? The larger question is: What can be done to prevent the cancellation of the 2011 season?

The owners and players had been working well together under a collective bargaining agreement negotiated in 2006. The NFL’s collective bargaining agreement expired last week so there is a work stoppage. The NFL players and the owners cannot agree on how to divide up the TV and ticket revenue, which comes to about nine billion dollars per season. A large portion needs to be set aside for player’s health and retirement benefits.

The fat-cat owners opted out of the former collective bargaining agreement in 2008. The owners were feeling they weren’t getting enough of the money brought into the NFL. Under the old deal, of 9 billion dollars, the owners would get one billion upfront, and then the remaining $8 billion got split up 60-40, with 60% going towards player salaries. Here is where its gets dicey; the owners wanted to take an additional billion dollars off the top and then divide the remaining $7 billion of that 50-50. According to the owners, they need “this extra” money off the top because they need funds to pay for huge stadiums and updated facilities. The owners are also required to pay for retired players health insurance and other miscellaneous services. In order to generate even more money, the owners want an 18 game regular season, which will increase the $9 billion pot substantially.

On the flip side, given the outbreak of head injuries and other major health problems, the players have absolutely refused to play two additional games, so that is off the table. The players, however, have offered to split all the money 50-50. It is important to note that the players were content with the old collective bargaining agreement and wanted to keep it, but it was the filthy rich the owners who opted out. The players have been willing to work with the owners and give up a little for the betterment of the game, but again the owners have been refusing their offers.

So now we are at a standstill. Further, the owners have refused to give information about their spending to the players, and as a result the two sides have not been able to reach an agreement. I believe that the ordeal will go to court and the judge will rule in favor of the players because once the judge sees how unfair the owners are treating the players, and the players will win the encounter in court.

This case represents the worst of capitalism; both sides are successful and making tons of money yet unable to reach an agreement. The owners are the real culprits here; in the end, they really don’t care about the game; they just want to fill their pockets off the backs of athletes.

- Marcus Vincent
Junior Correspondent