Owners Opt Out of Labor Deal Early
ATLANTA--The NFL's franchise owners voted here today to end their labor deal with the players' union early.
The owners' decision means that the deal, ratified in March 2006, expires after the 2010 season. The 2009 season becomes the final one with a salary cap.
The labor agreement contained a reopener clause that could be exercised by either side by Nov. 8.
Owners have complained that the deal, which gives the players close to 60 percent of league revenues under the salary cap, is overly favorable to the union.
Union chief Gene Upshaw has said he expects the owners to consider a lockout of the players in 2011.
The owners' vote to terminate the deal, which was to run through the 2012 season, was unanimous, the league announced. The owners took the vote during a one-day meeting at an Atlanta hotel.
"A collective bargaining agreement has to work for both sides," the league said in its statement, stressing that "NFL football will be played without threat of interruption for at least the next three seasons."
The league's statement also said: "We are resolved to do our best to achieve a fair agreement that will allow labor peace to continue through and beyond the 2011 season."
The two sides already have had at least one bargaining session.
"Our objective is to fix these problems in a new CBA, one that will provide adequate incentives to grow the game, ensure the unparalleled competitive balance that has sustained our fans' interest, and afford the players fair and increasing competition and benefits," the league said in its statement.
Upshaw told Sirius satellite radio that he'd received the news in an e-mail from NFL Commissioner Roger Goodell and replied to Goodell: "What a surprise."
Upshaw also said during the radio interview: "When we negotiated this deal, we had two stop points that you could decide to terminate, either side. Obviously the owners have decided to take this termination early. We expected it. But it means that there is football through 2010, not through 2012. And it also means that, as they say during the draft, we're on the clock. That's basically what it means."
Upshaw has said repeatedly in recent weeks that the NFL, with annual revenues of approximately $8 billion, is healthy financially and the players will not agree to any givebacks in the next labor deal.
In the previous set of negotiations, Upshaw managed to expand the pool of revenues from which the players are paid under the salary cap. He was adamant throughout those negotiations that the players would not take less than 60 percent of the expanded revenue pool. The six-year agreement paid the players an average of 59.5 percent of revenues, being phased in at 60 percent for two seasons, 59.5 percent for two seasons and 60 percent for two seasons.
Those negotiations were overseen on the league side by Goodell's predecessor, Paul Tagliabue, who had a close working relationship with Upshaw and retired as commissioner in September 2006 without the league having suffered through a work stoppage since he'd taken office in 1989. Tagliabue faced obstacles on his own side during those negotiations, as well as dealing with Upshaw and the players. The 2006 deal included a system for bolstered revenue-sharing among the 32 teams in addition to a settlement with the players, and was approved by a 30-2 vote of the owners. Only the Cincinnati Bengals and Buffalo Bills voted against the settlement.
But the deal included two possible reopener dates: Nov. 8, 2008 and Nov. 8, 2009. Goodell, formerly Tagliabue's top lieutenant in the league office, succeeded Tagliabue in September 2006 and immediately faced significant unrest among the owners about the labor deal. Some owners of lower-revenue teams felt they'd been pressured by Tagliabue into approving the deal, and owners now say the nation's worsening economic conditions have put a financial squeeze on many franchises.
By Mark Maske |
May 20, 2008; 10:12 AM ET
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Posted by: Brian | May 20, 2008 10:43 AM
You must work for free.
Posted by: Dummy | May 20, 2008 10:49 AM
Redskins fans have to be hoping for an uncapped year, no? Imagine the fun.
Posted by: Cindy | May 20, 2008 11:15 AM
Hey, great idea, from both sides. After all, look how well it worked for hockey.
In any case, they could save some of the money by establishing a sane rookie scale.
Posted by: groundhogdayguy | May 20, 2008 11:16 AM
this is why i could care less about who wins i like football and a good game but it doesn't matters who's on the field.
Posted by: joesph | May 20, 2008 11:21 AM
Brian said it best:
Greedy billionaires having a pi$$ing contest with greedy millionaires. And as long as we, the fans, keep watching the games on TV and buying the tickets & team-logo-paraphernalia to support these billionaires/millionaires, we really can't complain.
Posted by: HarryMerkin | May 20, 2008 12:15 PM
I think there's a bigger issue at play here. I think the players are more involved and invested than ever in their jobs and futures(and rightly so). There may well be a battle looming over what kind of union they want to have -- a vigorous one or a meek one. So, while there's plenty of time ahead, I am concerned.
Posted by: Cindy | May 20, 2008 12:33 PM
Goodell is holding a presser now and one thing they want to address first is altering preseason -- dropping one preseason game, among other things.
Posted by: Cindy | May 20, 2008 12:37 PM
Don't understand why they don't have a pay scale for the players. This IS collective bargaining, isn't it?
Posted by: Shanks1 | May 20, 2008 12:44 PM
Another factor that has changed is the new economic reality. Sure, these are billionaires who make money hand over fist from the TV deal and the fact they have an attractive product, but they began building glittering new billion-dollar stadiums and have to finance those in the new environment. And they're used to treating labor as a very replaceable commodity.
Posted by: Cindy | May 20, 2008 12:51 PM
All of these things will come to bear on the negotiations.
Posted by: Cindy | May 20, 2008 12:52 PM
I'm AMAZED that Gene Upshaw still has a job. NFL players literally risk their lives every time they step on the field and their contracts aren't guaranteed? Please don't tell me that the owners can't afford guaranteed contracts because the NFL makes money hand over fist over every other league with their revenue sharing, merchandising, lucrative TV deals, etc. (NHL, NBA, and MLB owners seem to do just fine financially with guaranteed contracts without the gigantic revenues that the NFL brings in).
Gene Upshaw, wake up and earn that $8 million+ that you get a year. While you're at it, take care of the former players.
Posted by: a fan | May 20, 2008 1:23 PM
I think players are just starting to wake up to that, A Fan. They're just now beginning to get it, to understand their power. It would be nice if, while they're at it, they took care of the old guys. They owe them that.
Posted by: Cindy | May 20, 2008 1:33 PM
Each year I consider buying season's tickets but each year the price is higher than last years. I blame the greedy high draft choice players that come out of college and, without playing a down, get all at once as a signing bonus a sum 3 to 4 times what a fan would earn in a life time.
Maybe the players pay should be indexed off of what the common fan earns.
Posted by: Alan | May 20, 2008 1:34 PM
I am kind of torn on this one. Today's players make very good money across the board. The lowest paid players can still maintain a very high standard of living.The problem players face is longevity. The average career is less than 5 years.As far as the owners go my question is how much is enough? Forty percent of 8 billion dollars breaks down to about 1 billion per franchise. Pretty good change in my book. If I am the players my focus is more on long term benfefits to deal with the potential health issues one is likely to face even from only playing several years in the league. Maybe you make some concessions today for better benefits after your playing days are over. I am to blame for this problem. I am a season ticket holder and often spend huge money on NFL Sunday Ticket and my season tickets as well as shelling out even more cash for the licensed goods I have to have. The game has become so commercialized it makes me sick. Players play for the love of the game first! Owners it's time to do some soul searching. If your only in it for the money do us all a favor and get out now! I as a die hard NFL will end my relationship with the NFL if a "lock out" occurs in 2011. I encouarge all those like me to follow suit to say enough is enough!
Posted by: Patrick | May 20, 2008 1:50 PM
I think restructuring the contract will benefit everybody involved (owners and players) in the end. I can't see how either side, other then early 1st round rookies, would be happy with the current agreement. But, a salary cap is a must have in the new agreement.
Posted by: Anonymous | May 20, 2008 1:55 PM
Christ, these idiots are going to kill the golden goose.
"Some owners of lower-revenue teams felt they'd been pressured by Tagliabue into approving the deal, and owners now say the nation's worsening economic conditions have put a financial squeeze on many franchises."
Cheapskate scumbags like Ralph Wilson, Mike Brown, and the Bidwills ought to have their franchises revoked. If owning an NFL team is such a financial hardship, why aren't they selling their teams?
Posted by: Marc | May 20, 2008 2:10 PM
Very provocative thoughts, Patrick.
as for Anonymous' comment about the cap, Upshaw has said repeatedly: If the salary cap goes away, it's never coming back.
Posted by: Cindy | May 20, 2008 2:11 PM
I hope the cap is gone. As a skins fan I think it would be hillarious to see Snyder go batsh@t over every free agent out there. Who cares about the small market teams anyway - they sort of serve their purpose in baseball too.
Posted by: Tyler Durden | May 20, 2008 3:30 PM
Good for the owners. There is nothing worse in this world than a labor union - the sooner they crush them and put them in their place the better. It was big labor that we can thank for bringing the automobile manufacturing industry to the brink of extinction in this country - greedy bastards. It is labor which fails to adapt to globalization - clinging to the status quo like a bunch of incompetent, whining losers. And worst of all is over-priced labor - none worse than the NFL on that score. How many of these whining, corrupt, criminal, me-first, entitled losers do we have to listen to before we say - enough!
Posted by: egrib | May 20, 2008 3:55 PM
Tyler - With no cap, there will be no stopping Snyder from charging you even more for your tickets, parking, and beer at the stadium in order to feed his fantasy football (pay absurd amounts to free-agents) mentality approach to building a team.
Posted by: Cap Fan | May 20, 2008 4:12 PM
Has anybody here been to San Antone, or Phoenix, Arizona?
Redskins will rule the football universe for the next three seasons. After that, they'll rule it even more!
Posted by: mart | May 20, 2008 4:58 PM
Bravo to the owners. The first round draft picks are, with few exceptions, far too overrated and far too overpaid. Let them do some NFL time, 2, maybe 3 years, negotiable, then allow them to earn the big bucks. I know football is a viciously contact sport. Maybe it's also time for both the Owners and the Union to give due respect to "former players"....those who palyed the game hard but who did not get the fat $$$$ contracts. Just a thought. Thank you.
Posted by: jim | May 20, 2008 6:39 PM
Remember, the players are the reason we all shell out so much money on the NFL. They deserve every penny they can make. If you don't like it, stop buying tickets and merchandise and drink less Budweiser. It's just like going to Vegas -- all of those fancy towers were built with the money you lost at the tables.
I just hope that both sides are smart enough not to kill the golden goose...
Posted by: Steve | May 20, 2008 10:15 PM
The comments to this entry are closed.

Greedy billionairs having a pi$$ing contest with greedy millionairs.