Revenue growth likely will be a big part of the new CBA

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With progress continuing to be made between the NFL and the NFLPA* toward a new labor deal (Albert Breer of NFL Network adds to the growing chorus that sees a deal coming within two-to-four weeks), the biggest issue in turn gives rise to another big issue.

Specifically, how big the pot of money will grow.

The league wants the players to take a smaller slice of the piece, with the understanding that the players will make up the difference, and then some, via an ongoing expansion of the total revenue.  Thus, in order to persuade the players to make the requisite leap of faith, the players may request that the league make firm commitments regarding the growth of the proverbial money pie.

The players could propose a formula that ties the total payout to when and if the NFL returns to Los Angeles.  For example, the deal would give the players a smaller slice of each dollar in 2016 if a team is playing in Los Angeles, where the total revenues surely will be greater for the franchise that makes the move.  Likewise, the players could agree to a smaller piece of the pie beginning in the season in which the league sells the NFL Network Thursday night package to the highest bidder.  Other ideas for growing the revenue could be identified by the players and proposed to the league, providing the NFL with a clear incentive for maximizing the total revenue.

Regardless of the manner in which this concept manifests itself in the new deal, it makes plenty of sense for the players to press for specific commitments to increase revenue, especially in light of the league’s failure to max out the money in the so-called “lockout insurance” case.

17 responses to “Revenue growth likely will be a big part of the new CBA

  1. Slippery slope though. The NFL is popular and always will be but the revenue cannot grow at this pace forever. I know the TV revenue is a big part of it but going to the games itself is already becoming too expensive for a lot of folks.

  2. 4gone says:
    Jun 14, 2011 5:12 PM
    Slippery slope though. The NFL is popular and always will be but the revenue cannot grow at this pace forever. I know the TV revenue is a big part of it but going to the games itself is already becoming too expensive for a lot of folks.

    ——————————-
    True. More fans, including myself, are staying home to watch it on HD where the beer’s cheaper and there’s no line to the bathroom. But, if the trend is as you say, and fans are staying away, I guarantee there will be no free NFL games any longer……. all pay per view

  3. They need to figure out an equitable way to monetize internet online broadcasting of each game. Either through a partner like DirecTV or some other provider like GoogleTV. I know for a fact that many fans, myself included, would pay a reasonable amount to watch their favorite team online on an ala carte game by game basis, *not* the entire Sunday Ticket model. I am so done with rip off DirecTV and cable systems.

  4. here is an idea.. let anyone who wants the nfl ticket purchase it.. why limit it to direct tv.. i would probably pay way to much for nfl ticket if i could get it (on Time Warner) i hate all satellite companies. nfl is limiting themselves too much. just as it does by not offering nfl network to time warner customers…

  5. Ummm…. about that decertification thing. Yeahhh… uh… well… I think we’ll be a union again.

    Regards,
    DeMo

  6. 4gone says: Jun 14, 2011 5:12 PM

    Slippery slope though. The NFL is popular and always will be but the revenue cannot grow at this pace forever. I know the TV revenue is a big part of it but going to the games itself is already becoming too expensive for a lot of folks.

    ————————————-

    NFL revenue from TV and other broadcast sources has more than doubled almost every new contract. In truth, ticket buyers are a much smaller total revenue source per game than the TV money. Owners like ticket buyers because they get to keep all the revenue from it, but the real dollars are the TV contracts.

    The small market teams, which comprise a majority of the NFL, benefit from ticket sales more than larger teams, but if push came to shove, the TV money would still rule. So the owners will always protect TV revenue, as opposed to protecting ticket buyers.

  7. funnelflurry says:
    Jun 14, 2011 5:35 PM
    here is an idea.. let anyone who wants the nfl ticket purchase it.. why limit it to direct tv.. i would probably pay way to much for nfl ticket if i could get it (on Time Warner) i hate all satellite companies. nfl is limiting themselves too much. just as it does by not offering nfl network to time warner customers…

    IAM TOTALLY WITH YOU ON THIS!!!!!!!!!!! i hate the fact that only direct gets it thats stupid . hopefully this will be part of the new cba to get more money because you got my 250 or whatever it is from me

  8. I would love for everyone to have a shot at Sunday ticket. That way, I could get the Phillies games back on my DirectTV roster.

    No reason for this silly arrangement and pissing contest that, as usual, punishes the fans.

  9. “The league wants the players to take a smaller slice of the piece.”

    Can’t sayit any bedder dan dat!!!

    Well maybe could!!!

  10. DirecTV paid them big bucks for the exclusive guys. They aren’t gonna give it up and the NFL needs to wise up with these kinds of deals. Cable TV and Satellite TV, like Satellite Radio is dead meat. Broadcasting over the internet is the next frontier. They better think it through carefully and not tie themselves up to extra long deals like they apparently have done with DirecTV. Oh and btw, Sunday Ticket sucks. Local black outs for local TV, no games outside Sunday, no preseason games. Just let me buy the game or games I want, period, no BS.

  11. So in other words the owners and the players got together and agreed, we need to get more money of out the fans! It is sad because after the agreement both side are going to walk out together turn to the fans and say WERE BACK while all of them hold out their hands so we can give them even more money

  12. it’s still at the same place…. the Players are arrogant and asking for too big a cut of top line revenue…. the Owners screwed up last time with the deal they gave them and dug their own hole…

    reality is the Players will eventually have to give in, they are the employees…. the only issue being when their idiot representation will tell them the truth or get fired….

  13. richc111 says: So in other words the owners and the players got together and agreed, we need to get more money of out the fans! It is sad because after the agreement both side are going to walk out together turn to the fans and say WERE BACK while all of them hold out their hands so we can give them even more money
    ___________________________________
    These guys aren’t holding guns to anyone’s heads. Fans are not compelled to spend their money if they choose not to. Must the NFL be yet another American addiction? Pretty silly to think that anyone would do something like that against their will. With the greed exhibited in recent years by the NFL and other corporations, and the devestating effect it’s had on middle class America, I’m not so inclined to do something that costs that much money just because a company or a league or its employees want me to. I still have choices.

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