Thursday, March 02, 2006

Some Thoughts on the NFL's Collective Bargaining Agreement

NFL owners and players now have three more days to agree on an extension to the league's collective bargaining agreement. If they are unable to do so, teams will have to contend with a lower salary cap in 2006 and no salary cap in 2007.

If you analyze this situation by looking at the percentages, you understand why the players and owners are having such a hard time reaching an agreement. What percent of the league's total revenue should go to the players, who are the actual product being sold, and what percent should go to those who manage the league? More specifically, how should the league split up money from particular revenue streams? It's a complicated debate.

On the other hand, if you just consider the raw numbers, the debate becomes silly. Everyone involved will make a lot of money, and any agreement is better than no agreement. The NFL is the most respected, most compelling, and best run professional sports league in the country, largely because of its collective bargaining agreement. There is always parity; small market teams have as good a chance of winning as the Giants, Redskins, or Cowboys; most top players spend several years with the same team; teams can rebuild very quickly. The average fan doesn't understand why players and owners, who will make millions regardless of what the collective bargaining agreement says, would put at risk the future of the league.

If no agreement is reached, 2006 will be a mess. Teams will no longer have the option of playing with the numbers to stay under the salary cap, and several players will likely have to be cut during the season. The cap will then expire before 2007, allowing large market teams to spend money indiscriminantly and making it very difficult for small market teams (like my Titans and my family's Colts) to compete. The league will lose much of its appeal and part of its fan base.

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