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One week after walkout, silence

GoodellSmithCongress AP

NFL Commissioner Roger Goodell believes that the time has come to make a deal.  Unless he and NFLPA executive director DeMaurice Smith have mastered the gift of ESP, getting a deal done will be difficult because the two sides simply aren’t talking.

Judy Battista of the New York Times reports that there have been no conversations since the league walked out of last Wednesday’s bargaining session.

“It was not the meeting we expected when we went there,” NFL general counsel Jeff Pash told Battista regarding the league’s decision to short-circuit the two-day meeting less than one day into it.  “A lot of groundwork had been laid for what we hoped would be a very productive session.  It became clear over the course of hours of discussion that we had a pretty fundamental disagreement, that there was not a meeting of minds.”

Battista also reports that the talks broke down after the league concluded that the union had backtracked on a willingness to reduce its cut of the post-$1-billion-off-the-top revenue from 59.6 cents per dollar to 52.  The owners had proposed cutting the number to 48 percent.  When the league inquired as to possibilities for bridging the gap, the union said that the 52-cent model was merely an illustration, not a proposal.

(This conflicts with Chris Mortensen’s report from last week that the union asked for roughly 50 cents of all dollars, and that in response the league left the meeting.)

Putting that into total dollars, if we assume $9 billion in revenue and $1 billion off the top, a move from 59.6 cents to 52 represents a reduction from $4.768 billion to $4.16 billion.  That’s a drop of $608 million per year, based on current numbers.

The league’s offer of 48 cents takes it down to $3.84 billion, more than $900 million less the cut the players get under the current formula.

It’s no surprise that, instead of taking another $1 billion off the top, the league wants to tweak the formula in a way that translates to roughly $1 billion now, since as the pie continues to grow that number will grow.

Still, it’s unfortunate that, with 16 days until the labor deal expires, nothing is happening.

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17 Responses to “One week after walkout, silence”
  1. wheresmyjuice says: Feb 16, 2011 1:29 PM

    Greed…It’s as American as apple pie!

  2. chapnastier says: Feb 16, 2011 1:32 PM

    (This conflicts with Chris Mortensen’s report from last week that the union asked for roughly 50 cents of all dollars, and that in response the league left the meeting.)

    Hmm so maybe all of your nonsense bias about the owners should be retracted. I mean if the union wanted 52 and the owners wanted 48 then 50 would have been a compromise. I guess the 153 stories you have ranted on about the owners is nonsense now. It is clear that neither you nor any of the “experts” know exactly what happened during that meeting. It is dangerous at best to continue speculating and wait until something concrete with actual evidence comes out.

  3. gpete1962 says: Feb 16, 2011 1:34 PM

    Who cares !! Get a real job. Both the owners and the players SUCK !!!

  4. hobartbaker says: Feb 16, 2011 1:35 PM

    DeMo’s proposal that each side take 59.6% of the revenue seemed fair on the surface, but was rejected by the accounting staff.

  5. broncfanor says: Feb 16, 2011 1:35 PM

    Maybe Goodell needs to be the leader he was hired to be and start making something happen.

  6. goodjet says: Feb 16, 2011 1:40 PM

    The NFL seems to think that no matter what the NFL does the NFL pie is just going to grow and grow and grow —- However if the NFL keeps Watering Down and Watering Down and Watering Down the NFL and Pricing Out and Pricing Out and Pricing Out the Fans, like it’s been doing —- The NFL may just have to deal with something called —- “SHRINKAGE”

  7. 3octaveFart says: Feb 16, 2011 1:45 PM

    Doesn’t exactly sound like two sides that want to get a deal done now does it?

    The owners are doing everything in their power to insure this lockout. They have no desire to negotiate.

    They’re going to stamp their feet and hold their collective breath if they don’t get what they want.

  8. dccowboy says: Feb 16, 2011 1:49 PM

    Sorry, but this explanation is a lot more plausible than Mortensen’s.

    If true, it’s the Union that is intransigent and wants to try to force a ‘lockout’ so they can decertify, giving credibility to the League’s charge and giving good fuel to the idea that the league will simply declare an ‘impasse’ and implement their LBO.

  9. medtxpack says: Feb 16, 2011 1:49 PM

    Godell is going to have to work some magic but most imprtantly do something, sitting quiet doesnt help….

  10. r8rsfan says: Feb 16, 2011 1:52 PM

    Only in the U$A.

  11. orangeflh says: Feb 16, 2011 1:52 PM

    Millionaires fighting with billionaires, while most Americans struggle just to provide food clothing and shelter.

    I’m a huge football fan but I have no sympathy for either side. They should all be ashamed.

  12. jonscoit says: Feb 16, 2011 1:57 PM

    Indeed, smell the magic! I’ve translated the corporate speak: “We believed the union had pre-applied the lube of their choice. When we got to the meeting, we learned that they had no intention of bending over the way we believed they should.”

    You also might point out that the league “offered” the players a 10% cut in wages.

  13. dgforreal says: Feb 16, 2011 2:02 PM

    We’re two of a kind
    Silence and I
    We need a chance to talk things over
    Two of a kind
    Silence and I
    We’ll find a way to work it out

    Get it done players and owners.

  14. JSpicoli says: Feb 16, 2011 2:05 PM

    Sorry NFL worshippers but Rome is falling.

  15. skylark70455 says: Feb 16, 2011 2:12 PM

    “wheresmyjuice says: Greed…It’s as American as apple pie!”

    As opposed to Envy… which Odumbo and the socialists are trying to slip into the apple pie recipe.

  16. nanner12wojo says: Feb 16, 2011 2:19 PM

    I interpreted Mortenson’s report to suggest that the 50-50 split was not including any billion being skimmed off the top. Thus if your $9 B estimate is accurate then it’d be $4.5 B going each way.

    Thus, the owners under the old formula get:

    $1 B + $3.2 B = $4.2 B

    Under the new 52% proposal:

    $1 B + $3.8 B = $4.8 B

    If my assumption is right the union was truly offering a number right in the middle and if so the owners would benefit more under a revenue growth model without the flat billion skimmed off the top.

  17. ontboltfan says: Feb 16, 2011 3:29 PM

    You have to consider splitting profit here vs rev to see what’s fair and isn’t. Rev was $9B and they put costs at $1B. So players got 60% of 8B or $4.8B and the owners got 40% of 8B or 3.2B. The other $1B just goes toward paying expenses like leases,property taxes,admin salaries etc.

    The problem was expenses are greater than $1B so the owners were making less than the $3.2B. The expenses are actually $2B so they owners were really only making $2.2B.

    So in other words the players are getting double what the owners are getting in $ in your pocket profit.

    Now the players want 50% of 9B or $4.5B. This is only a cut of 300K.

    The owners say you should get 50% (vs 60% before) of $7B = $3.5B which seems more fair.

    It is alot of work to audit expenses (the $2B) so maybe use $9B(all revenue) and split it 40% players ($3.6B) so the owners make $5.4B -2B expenses = $3.4B.

    This is exactly what the NFL’s position is now. With the ususal negotiation dramatics, they will probably saw it off at 45/55 of all rev.

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