Allen James
10/28/11
Research Paper Rough Draft
N F L Lo c k o u t s : S t o p p i n g P l a ye r s F r o m P l a yi n g , a n d F a n s F r o m C a r i n g
L a b o r d i s p u t e s i n t h e N a t i o n a l F o o t b a l l Le a g u e a r e n o t a n
uncommon occurrence. There have been conflicts since 1957, when
t h e p l a ye r s f i r s t a t t e m p t e d t o f o r m t h e N a t i o n a l F o o t b a l l Le a g u e
P l a ye r s ’ A s s o c i a t i o n ( N F LP A ) . It t o o k t h e l e a g u e e l e v e n ye a r s t o
o f f i c i a l l y r e c o g n i z e t h e p l a ye r s ’ u n i o n , w h i c h a l l o w e d f o r m o r e
formal and collective disputes between the management of the NFL
a n d t h e p l a ye r s . W i t h t h e r a p i d g r o w t h i n p o p u l a r i t y t h a t t h e N F L
g a i n e d o v e r t h e s e c o n d h a l f o f t h e t w e n t i e t h c e n t u r y, d i s p u t e s
b e t w e e n t h e N F LP A a n d t h e N F L o w n e r s ’ a s s o c i a t i o n b e c a m e m o r e
and more frequent. With increasing popularity came increasing funds,
a n d w i t h i n c r e a s i n g f u n d s c a m e i n c r e a s i n g c o n f l i c t . In m y p a p e r , I
plan to discover why these conflicts occur, how it affects the NFL
b o t h i n t e r n a l l y a n d e x t e r n a l l y, a n d h o w l a b o r d i s p u t e s c a n b e
avoided.
Im m e d i a t e l y a f t e r b e i n g o f f i c i a l l y r e c o g n i z e d a s a n o f f i c i a l
p l a ye r s ’ u n i o n i n 1 9 6 8 , t h e N F LP A v o t e d t o g o o n s t r i k e . T h e
m a n a g e m e n t c o u n t e r e d w i t h a l o c k o u t , w h i c h s t o p p e d p l a ye r s f r o m
participating in any activities related to their teams. This dispute was
shortly resolved by setting a “ $9,000 minimum salary for rookies and
$10,000 veteran minimum” (Bell), thus ending the first NFL lockout.
In 1982, the NFL entered into one of its most extensive strikes, when
p l a ye r s d e m a n d e d o v e r h a l f o f t h e o v e r a l l r e v e n u e t a k e n i n b y t h e
league. The season was already two game s in when the strike
o c c u r r e d , a n d t h e d i s p u t e l a s t e d a l m o s t t w o m o n t h s . F i n a l l y, w h e n a n
a g r e e m e n t w a s r e a c h e d , t h e p l a ye r s r e c e i v e d n o t o n l y a b e t t e r
percentage, but money for the part of the season that was missed
d u r i n g t h e s t r i k e a n d a b e t t e r b e n e f i t s p a c k a g e . T h e y p l a ye r s f i n i s h e d
out the season, finishing only half the games intended at the
b e g i n n i n g o f t h e s e a s o n . W i t h t h e s u c c e s s o f t h e i r s t r i k e , t h e N F LP A
g a i n e d m u c h m o r e p l a ye r i n t e r e s t o a d d t o t h e w a n i n g s u p p o r t t h e y
previously had.
A r o u n d f i v e ye a r s a f t e r t h e m a j o r p l a ye r s s t r i k e , t h e N F LP A
sought to have another strike, similar to the one before. This strike
was again initiated two games into the season. The strike was an
attempt to create a new Collective Bargaining Agreement (CBA),
w h i c h i s a r e s o l u t i o n b e t w e e n t h e p l a ye r s a s s o c i a t i o n a n d t h e o w n e r s
a s s o c i a t i o n . P l a ye r s w a n t e d t h e n e w C B A t o i n c l u d e a s l i g h t l y h i g h e r
p e r c e n t a g e o f t h e l e a g u e ’ s r e v e n u e , b e t t e r p r o t e c t i o n f o r p l a ye r s i n
t h e i n s t a n c e o f i n j u r i e s , a n d a m o r e “ l i b e r a l i z e d f r e e a g e n c y” ( B e l l ) .
Instead of allowing for a stoppage of football like the previous
s t r i k e , t h e o w n e r s ’ a s s o c i a t i o n d e c i d e d t o h a v e g a m e s p l a ye d b y n o n u n i o n p l a ye r s . T h e s e w e r e m a i n l y s e c o n d s t r i n g p l a ye r s w h o d i d n o t
see much action in previous games, althou gh there were a few stars
f r o m t h e u n i o n w h o c h o s e t o p l a y a n yw a ys . W i t h t h e s e g a m e s s t i l l
counting in the standings and football going on without them, the
N F LP A g r e w c o n c e r n e d . A f t e r a m o n t h , t h e c e s a t i o n o f t h e s t r i k e w a s
v o t e d b y t h e p l a ye r s u n i o n w i t h o u t t h e f o r m a t i o n o f a n e w C B A . T h i s
s t r i k e w a s t h e l a s t m a j o r l a b o r d i s p u t e b e t w e e n t h e N F LP A a n d t h e
owners’ association to occur until 2011.
I n 1 9 9 3 , t h e N F LP A a n d t h e o w n e r s ’ a s s o c i a t i o n f o r m e d a C B A
t h a t s e t a s a l a r y c a p - i n f l u e n c e d s ys t e m a s w e l l a s l i b e r a l i z e d f r e e
a g e n c y. W i t h t h i s C B A , t h e N F L p a s s e d t h e N B A w i t h t h e f a s t e s t
growing revenue in major league sports (Baschnagel 81). When the
C B A w a s a b o u t t o e x p i r e i n 2 0 0 6 , b o t h t h e p l a ye r s ’ a n d o w n e r s ’
associations voted to renew and extend the CBA until the 2012
season. During the 2008 season, however, the owners’ association
opted to exercise their early termination clause, which forced the
CBA to expire after the 2010 season (Redding 97). Without renewing
the CBA, the NFL approached the 2011 seaso n without a salary cap,
resulting in a severe shortage of unrestricted free agents signing an
offer in comparison to the previous season. Without the salary cap,
unrestricted free agents had very little chance of getting on a team or
even continuing their career. The conflict escalated as the deadline to
form a new CBA approached. Several attempts at mediation between
t h e p l a ye r s a n d o w n e r s a l l e n d e d i n f a i l u r e , a n d t h e C B A e v e n t u a l l y
e x p i r e d . W i t h t h e e x p i r a t i o n o f t h e C B A , t h e p l a ye r s u n i o n d e c i d e d t o
d e c e r t i f y, w h i c h m e a n s d i s b a n d t h e i r u n i o n s o t o f i l e i n d i v i d u a l s u i t s
against the NFL without the threat of a lockout. Before they could
d e c e r t i f y, t h e N F L o w n e r s ’ a s s o c i a t i o n p l a c e d a l o c k o u t o n t h e
p l a ye r s , c a u s i n g t h e r e c e n t l o c k o u t i n t h e N F L.
The deadline for the new CBA got pushed back repeatedly in
t h e m e e t i n g s b e t w e e n t h e p l a ye r s ’ a n d o w n e r s ’ a s s o c i a t i o n s . N e i t h e r
side would budge on the issues up for debate. The main grievances
t h a t t h e p l a ye r s w e r e f i g h t i n g f o r w e r e : k e e p i n g t h e s e a s o n a t s i x t e e n
games instead of increasing the number to eighteen, keeping their
percent of the revenue pool, and making it a fifty -fifty split of
o v e r a l l r e v e n u e b r o u g h t i n b y t h e N a t i o n a l F o o t b a l l Le a g u e . B e f o r e
this dispute, the owners took one billion dollars out of t he nine
billion that was in the revenue pool; they wanted to increase that
a m o u n t t o 2 . 4 b i l l i o n d o l l a r s , c u t t i n g t h e p l a ye r s ’ s h a r e b y e i g h t e e n
p e r c e n t ( O e s t m a n n ) . T h e o w n e r s a r g u e d t h a t w i t h t h e t o u g h e c o n o m y,
c o s t s o n t h e i r e n d h a v e i n c r e a s e d d r a m a t i c a l l y. T h e y c l a i m t h a t t h e y
cannot provide for their franchises without a higher percentage from
the revenue pool. Evidence from the past decade suggests that with
t h e i n c r e a s e d f u n d s b e i n g d r a w n i n b y t h e N F L, m a n y t e a m s a r e
s h o w i n g g r e a t f i n a n c i a l i m p r o v e m e n t a n d s t a b i l i t y. D e s p i t e t h i s
f i n a n c i a l g r o w t h o n t h e o w n e r s ’ p a r t , t h e p l a ye r s d i d n o t b u d g e o n
the percentage.
Another heated topic in the debate was the split of overall
r e v e n u e b e t w e e n t h e p l a ye r s a n d m a n a g e m e n t . T h e o r i g i n a l s p l i t
before the mediations gave the owners a greater share. During the
r e n e g o t i a t i o n o f t h e C B A , t h e p l a ye r s p u s h e d f o r a f i f t y - f i f t y s p l i t .
They have made claims that they are the reason for a majority of the
income, seeing as they are what the fans are actually watching and
interested in. The owners firmly refused, countering with a forty -nine
f i f t y- o n e s p l i t . T h e p l a ye r s w e r e j u s t a s s t e a d f a s t a s t h e o w n e r s i n
their demands and declined the offer. A point brought up by the
o w n e r s ’ a s s o c i a t i o n w a s t h a t t h e p l a ye r s h a v e n o d i r e c t f i n a n c i a l r i s k
if the NFL takes a financial blow, especially considering the
e c o n o m y. T h e o w n e r s a r e t h e o n e s w h o h a v e t h e s h a r e s a n d f i n a n c i a l
r e s p o n s i b i l i t i e s f o r t h e i r f r a n c h i s e s , n o t t h e p l a ye r s . T h i s u n d e r s t o o d ,
t h e p l a ye r s a r g u e d t h a t w h i l e n o t s h a r i n g t h e f i n a n c i a l r i s k , t h e y h a v e
other risks of equal proportions, such as injuries. With injuries,
p l a ye r s a r e s u s c e p t i b l e t o d e c r e a s e d p a y o r e v e n f o r c e d r e t i r e m e n t ( i f
h i t w i t h a c a r e e r - e n d i n g i n j u r y) . T h e N F LP A f e l t t h a t t h e s e r i s k s ,
while different, posed an equally treacherous threat. Both sides
presented reasonable arguments, but neither side was reasonable to
l i s t e n t o t h e o t h e r . T h e p l a ye r s a n d m a n a g e m e n t w e r e a t a n i m p a s s e ,
and the deadline for the CBA passed. Then came the lockout.
After a 136-day lockout, both sides eventually reached a
settlement. The owners association received a considerable increase
f r o m t h e r e v e n u e p o o l . In s t e a d o f o n e b i l l i o n d o l l a r s o u t o f t h e n i n e
billion, they are now receiving over half of the revenue pool. Along
with this, the salary cap was slightly lowered. There is a stipulation
t h a t s a ys t h a t t h e o w n e r s m u s t u s e a t l e a s t n i n e t y - n i n e p e r c e n t o f t h e
salary cap for the next two seasons and at least ninety -five for the
f i v e s e a s o n s a f t e r t h a t . A s o l i d a m o u n t o f t h e p l a ye r s ’ d e m a n d s w e r e
also met. The season is to stay at sixteen games instead of eighteen
l i k e t h e o w n e r s ’ a s s o c i a t i o n w a n t e d . A l s o , p l a ye r s a r e t o r e c e i v e a
higher percentage of money brought in by various deals with the
m e d i a . B a s e s a l a r i e s f o r p l a ye r s a r e n o w i n c r e a s e d b y 5 5 , 0 0 0 d o l l a r s
a c r o s s t h e l e a g u e . T o p r o t e c t p l a ye r s , t w o a d a y p r a c t i c e s a r e n o w
b a n n e d , w i t h p l a ye r s o n l y a l l o w e d f o u r a n d a h a l f h o u r s o f p r a c t i c e a
d a y. T h e r e a r e o t h e r p r a c t i c e a n d p r e s e a s o n r e g u l a t i o n s t h a t g e t
p l a ye r s o f f t h e f i e l d a n d b e t t e r p r o t e c t e d f r o m i n j u r y. F i n a l l y,
p l a ye r ’ s p e n s i o n w a s r a i s e d a n d v e t e r a n s r e c e i v e t h e N F L’ s m e d i c a l
plan for life, even in retirement. Although both sides had to give up
some of their demands, they both came out with some of the biggest
points they were pushing for.
I n t h e m a t t e r o f w h o w a s h i t h a r d e r b e t w e e n t h e p l a ye r s a n d
m a n a g e m e n t , t h e r e w a s n o c l e a r w i n n e r . In s t e a d , b o t h s e e m e d t o b e
the losers of a dangerous game. The management took some very hard
financial hits. Over the past decade , the owners have sharply
increased spending, whether it be renovating stadiums for the
franchise or purchasing better equipment. With the rising costs on all
of these expenses, the owners’ association tried to protect themselves
with a four billion dollar insurance pot. This was deemed unlawful by
J u d g e D o t y, t h e j u d g e w h o h e a r d t h e a n t i t r u s t c a s e f i l e d a g a i n s t t h e
N F L b y t e n p l a ye r s f r o m t h e p l a ye r s ’ a s s o c i a t i o n . B y t r yi n g t o i n s u r e
themselves four billion dollars, the NFL management cost them more
m o n e y a n d f o r c e d t h e m t o s h a r e t h e m o n e y w i t h t h e p l a ye r s .
One of the biggest blows received by the NFL owners
association was the decrease in sales during the 2011 season after the
lockout was resolved. Many teams, mainly less popular teams, took a
steep drop in ticket sales going into the 2011 season. The lockout
was resolved roughly seven weeks before the start of the season.
Many franchises were not able to market the sale of tickets with that
short a window before the season. Along with that, fans were not
willing to buy tickets in advance given the recent show of instability
within the league. A team that took one of the biggest hits was the
Buffalo Bills.
In t h e p a s t f e w s e a s o n s l e a d i n g u p t o t h e 2 0 1 1 s e a s o n , t h e
Bills have had losing records, causing a lot of fans to drop their
support. With such a short time to sell, they only sold 37,555 season
tickets for the 2011 season; this marks the second lowest season
t i c k e t s a l e b y t h e B i l l s i n t h e p a s t t e n ye a r s ( B i l l s ) . O t h e r t e a m s
around the league, like the Cincinnati Bengals, have taken even
worse cutbacks in ticket sales as a result of the lockout. The Bengals
o v e r a l l d i p i n s a l e s t h r o u g h o u t t h e 2 0 1 1 s e a s o n w a s a s t a gg e r i n g
e i g h t y- f o u r p e r c e n t d r o p ( La m ) . T h e m a j o r t e a m s t h a t w e r e a f f e c t e d
by the lockout are shown in the chart below.
Drop in 2011 Ticket Sales After Lockout
84 Cincinnati
82
80
Tennessee
78
Cleveland
76
Dallas
Minnesota
74
72
70
68
Cincinnati
Cleveland
Minnesota
It i s c l e a r t h a t t h e l o c k o u t t o o k a l a r g e t o l l o n t h e m a n a g e m e n t w h e n
it came to attendance during the 2011 season.
Although the owners were hurting due to the lockout, they were
n o t a l o n e . T h e p l a ye r s t o o k s o m e h i t s a s w e l l . N o t b e i n g a l l o w e d t o
p r a c t i c e w i t h t h e i r t e a m s , m a n y p l a ye r s w e r e r u s t y a n d l a c k i n g s k i l l wise coming into the season. Also, there was a rush to renew
contracts in the two months between the end of the lockout and the
k i c k o f f t o t h e n e w s e a s o n . T h e p l a ye r s t h a t w e r e h u r t t h e m o s t f r o m
the lockout were the draftees. Coming fresh out of college, the hot
yo u n g p r o s p e c t s w e r e f o r c e d t o q u e s t i o n w h e t h e r o r n o t t h e r e w o u l d
b e a s e a s o n f o r t h e m a f t e r b e i n g p i c k e d i n t h e d r a f t . In s t e a d o f
h a v i n g a m a j o r i t y o f t h e h yp e a n d a t t e n t i o n g o i n g i n t o t h e s e a s o n , t h e
rookies were shoved to the side as the focus was put on the lockout
and potential lack of a season. This hurt the rookies in a couple
w a ys . O n e w a y w a s t h a t t h e y w e r e n o t g i v e n f u l l p r e p a r a t i o n a n d
training with their new team before the season as was needed or
expected for newcomers to the league. Also, lack of media focus on
the rookies led to less product endorsement deals for them. Although
Cam Newton landed a strong deal with Under Armour, none of the
other rookies were given significant endorsement deals. Companies
did not want to sign a promising rookie to their label if he was not
going to get a chance to prove himself or even wear the merchandise
being marketed.
Perhaps the group that was hurt the most from the NFL lockout
was the lower level workers. All the ticket and memorabilia
salesmen, people that work at football stadiums, and
assistants/community relations liaisons that make their living off of
football teams are the first to fall financially when there is a lockout.
M e r c h a n d i s e s a l e s h a v e b e e n o n t h e d e c l i n e o v e r t h e p a s t f o u r ye a r s
due to the recession, but with the recent lockout, sales have
plummeted around twenty-five percent. The lockout alone hurt the
l o w e r l e v e l j o b s . If t h e l o c k o u t e x t e n d e d a n d f o r c e d t h e r e t o b e n o
2011 season, then a multitude of people would be forced out of jobs
and income that relies solely of the NFL season.
O v e r a l l , b o t h t h e N F LP A a n d t h e o w n e r s ’ a s s o c i a t i o n g o t a l o t
of what their demands met by the end of the lockout. As for the
N a t i o n a l F o o t b a l l Le a g u e i t s e l f , t h e r e w a s a n e g a t i v e e f f e c t o n t h e
2 0 1 1 s e a s o n r e s u l t i n g f r o m t h e l o c k o u t . T h e p l a ye r s a n d o w n e r s c a n
argue all they want, but the group that matters most in the debate is
t h e f a n b a s e . T h r o u g h t h e l o c k o u t a n d t h e m e d i a ’ s p o r t r a ya l o f t h e
two arguing sides, a majority of football fans were alienated by the
greed presented in the debate. Both sides had qualms that centered on
m o n e y. In a t i m e o f r e c e s s i o n a n d w e a k e c o n o m y, t h e f a n b a s e c o u l d
n o t u n d e r s t a n d t h e h e a t e d s i d e s d e m a n d i n g m o r e m o n e y, w h e n t h e y
are both rich to begin with. Although the most current lockout ended
in a mutually beneficial settlement, past NFL labor disputes have
g o n e b o t h w a ys . T h e r e i s n o s i d e t h a t i s c o n s i s t e n t l y f a v o r e d b y t h e s e
strikes. The only constant effect of these disputes is a general dislike
by the fans. Although both sides of the debate come out with a sense
of victory and accomplishment, the NFL itself takes a toll.
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