A few weeks ago, the NFL owners stood across the line looking at the National Football League Players Association (NFLPA) like a premier pass rusher looks at a way-past-his-prime offensive tackle…they couldn’t wait for the play to begin. The owners seem to have overestimated their advantage primarily because that long-toothed tackle isn’t a player at all. He’s a federal judge named David S. Doty and he’s the owners’ worst nightmare.
Coming into these negotiations, it appeared that the owners had all the advantages. Virtually all NFL teams are profitable because of their gargantuan TV contracts and unique “all for one and one for all” revenue-sharing practices.
In contrast, the NFL players are a group just waiting to be divided and conquered. The NFLPA has more members than any other players association in major professional sports. Most make under $1million per year and the average NFL career is under 4 years. During the last work NFL stoppage, the owners hired replacement players and probably could have broken the union if they had wanted to…but they didn’t want to…they just wanted their concessions and they got them.
If the basic dynamics weren’t one-sided enough, the owners had an ace up their sleeves. In their national TV contracts they had negotiated a truly unique provision…even if there were no gamesdue to a work stoppage, their TV partners would continue to send them their rights fees (up to $4Billion…yeah, with a “B”). The owners would have to repay these monies over the remaining length of their TV deals, but it would ensure that the owners had something the players wouldn’t have…a continued cash flow to meet their fixed financial obligations.
I suppose this is as good a time as any to acknowledge that I viewed the NFL vs. NFLPA collective bargaining agreement (CBA) negotiations as an unfair fight and one that would see the players folding like a newly WD40-ed lawn chair. I hadn’t counted on Judge Doty. Shame on me…I forgot my history.
On March 1 with the current CBA about to expire, Judge Doty reached up the owners’ sleeve, pulled out their ace and tore it up before their eyes. Essentially, he ruled that the deal the owners made with their TV partners was unfair to the players since, in order to get this concession from the TV folks, the NFL left potential incremental revenue “on the table.” Since players’ salaries and benefits are based on a percentage of total league revenue, as Judge Doty saw it, by leaving money on the table in return for the “cash flow loan” from their TV partners, the owners were using monies that were partially due the players to beat hell out of them at the negotiating table.
Naturally, the owners vehemently deny this charge insisting that the $4Billion was simply a loan and that they acted in a responsible business manner and in the best interests of the game.
I didn’t see any report that Judge Doty laughed when he heard the league’s explanation, but my guess is that he was at least stifling a chuckle.
A word or two about Judge Doty.
Doty presided over the landmark antitrust case between the players and the NFL in 1992. When the players de-certified the NFLPA, Doty ruled that the league’s rules regarding free agency violated federal anti-trust law. This led to the eventual 1992 CBA between the re-certified NFLPA and the NFL. While the owners clearly “won” the ’92 negotiations, Doty was named in that CBA as the ultimate arbiter of grievances or issues between the NFLPA and the NFL Management Council. Every few years since the ’92 agreement, the owners and players have agreed to extend the ’92 CBA. As a result, Doty remains the sole arbiter of disputes between the parties. This is why he was able to swipe the owners’ ace.
Over the last 18 years, Doty has been described as a pro-labor judge and for good reason. He has heard many NFL vs. NFLPA disputes and the next time he rules in favor of the league will be the first. Michael Vick got to keep his Atlanta signing bonus because of Doty. Local Minnesota Vikings’ linemen, Pat and Kevin Williams avoided their anti-doping suspensions because of Judge Doty. When a new owner joins the NFL fraternity, he’s given a Judge Doty doll and a lifetime supply of pins as an initiation gift (OK, I made that last part up).
One last thing about Judge Doty and the NFL. The NFL always appeals his decisions and all of his decisions have been upheld.
Today the NFLPA has de-certified. This opens up the world of anti-trust lawsuits to the players. This will effectively keep the NFL from doing any business (signing draftees or free agents), but it won’t help get a deal done.
Even without their TV money ace, I still like the owners’ chances in this one. They still have most of the leverage. Unfortunately, this latest NFLPA move will probably send each side to their bunkers. The owners have assessed their situation without their TV revenue ace and decided that they can live with it. Their pockets are still deeper than the players. The owners will now be more careful in making certain that anything they do will not be subject to judicial review…because they’re convinced that Judge Doty will be unsympathetic.
It’s just down to old-school country hardball negotiating from here on out.
No comments:
Post a Comment