The NFL Labor Dispute: Millionaires Versus Billionaires?

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updated Apr 08, 2011

By Author - LawCrossing

03/21/11

Essentially, the lockout stops all the league's activities, including trades, and any other dealings between clubs and players. It could also disrupt the 2011 football season.

On Friday, March 11th, the union, National Football Players League Players Association, (NFLPA) 'decertified', or dissolved, meaning the players gave up their right to collectively bargain. Prior to the lockout, the two sides had been meeting in Washington for over two weeks to try to reach an agreement, and avoid the NFL's first work stoppage since 1987.

A statement issued by the NFLPA said: ''The union's abandonment of bargaining has forced the clubs to take action they very much wanted to avoid. At the recommendation of the Management Council Executive Committee under the authority it has been delegated by the clubs, the league has informed the union that it is taking the difficult but necessary step of exercising its right under federal labor law to impose a lockout of the union.''

Nearly a dozen players, including Tom Brady, Peyton Manning and Drew Brees filed antitrust lawsuits against the NFL to try to stop the lockout.

A number of issues, which have been ongoing for about two years, are at the heart of the dispute, including how to divvy up the $9 billion plus dollars of annual revenues. According to a recent article at abcnews.go.com, “NFL Labor Fumble: Union Dissolves, Owners Lock Out Players'', owners offered to allocate $1 billion of the league's revenue for expenses, and give the players around 60 percent of whatever was left. However, the owners, pointing to the recent economic downturn, want another billion for themselves. Compounding the issue is the owners' apparent unwillingness to share their financial statements.

In addition, the NFL wanted to add two more regular season games, for a total of 18. The players say that increases their risk of injury, and they want to be compensated.

On the surface, the dispute might appear to be a case of millionaires versus billionaires. However, according to Pittsburgh Steeler Ryan Clark in a recent interview with ESPN, that's simply not true.

''I played four years in this league at league minimum, married with a family of three, having to sustain two lives, and believe me, I was nowhere close to being a millionaire,'' he was quoted as saying in a recent interview with ESPN. “The public perception is that it is just two rich groups of people fighting over money, and that's not the case.''

NFL executive vice-president and general counsel Jeff Pash and NFL Commissioner Roger Goodell have both slashed their normally $5 and $10 million annual salaries, respectively, to $1, which they agreed they would do if there was a work stoppage.

In recent Congressional meetings, several former NFL players, including Reps. Heath Shuler, D-N.C., and Jon Runyan, R-N.J., discussed how a lockout and no 2011 football season would hurt the economy. No football hurts the hospitality industry, merchandising, and right on down the line, to the parking attendants at the stadiums.

President Obama weighed in on the issue, stating that “an industry that takes in $9 billion a year in revenue should be able to figure out how to divide that up in a sensible way and be true to the sport's fans,'' who the president said are ''the ones who obviously allow for all the money that they're making.''

Both the NFL and the players have issued statements of apology to the fans, saying they want to resolve the matter as soon as possible.

The courts will decide if the lockout can be enforced for a long period of time.
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