Mar 28, 2011

What is at stake?

You will hear a lot of Millionaires vs Billionaires talk but when it comes down to it, there is a LOT of things at stake in these Collective Bargaining Agreement (CBA) negotiations between the NFL Owners and NFL Players.

An 18-game season, rookie wage scale, and improvement in player health benefits are important, but, how the 9 BILLION DOLLAR pool of revenue gets divided is the big question.





Here's how it currently works: The NFL takes in about $9 billion a year, and the owners get in the neighborhood of $1 billion for "expense credits" associated with running the league - things such as stadium construction, scoreboard upgrades, and promotions that they say keep the game popular. The remaining money is split roughly 60 percent (players) to 40 percent (owners). The owners are asking to take out an additional $1 billion in expense credits before the rest of the pie gets divvied up.

I made a table ;)


IncomeExpense Credits |Remaining $ |Teams cut of player $ |Teams cut of Expense Credits |Each teams cut of Owner $|
Current
9 Billion1 Billion8 Billion150 Million30 Million100 Million
Proposed
9 Billion2 Billion7 Billion131 Million60 Million87 Million
Owner Projected
10 Billion     2 Billion8 Billion150 Million60 Million100 Million



The owners argument is 2 fold:
The players have been making a LOT MORE money and the teams have been making a LOT LESS.
The salary cap in 1994 was 34.6 million, 2005 was 85.5 million, in 2009 was 128 million.
While the green bay packers operating profit has plummeted from 35 million in '05 down to 9 million in '09 (The packers are the only team that release a balance sheet every year)

On why they want it in Expense credits: This is money that will be going right back into the teams facilities, marketing and improve the overall product. Hopefully driving up attendance and over all revenue! This will help teams keep the highest quality standards because the expense credits can not be pocketed to help the bottom line.

No comments:

Post a Comment