Making sense of the financial divide between the two sides
Deb says: Mar 13, 2011 11:09 PM
@Those who keep insisting players offered nothing, pay attention:
"[E]arlier this year, the players offered to take 50 cents of every dollar earned, without regard to expense credits or anything else that would be deducted before getting out the carving knife. The proposal represented a lower percentage of total dollars than the players have received in each year since 2002."
The owners demanded an additional $1 billion from players. The owners spent two years stockpiling lockout funds to finance them while they shut down the league. The owners hired a lockout specialist to head their "negotiating" team. The owners kept walking away from the negotiating table before making a ninth-hour offer that didn’t address the disputed revenues. The owners have waged a propaganda war to convince naive fans that labor is trying to hit them up for more money when it’s the other way around. The owners shut down the league–as they obviously intended to do from the start. The players are going to court in hopes of resuming business.
The percentage of the NFL revenues earmarked for players is comparable to the percentage of budget earmarked for human resources in any labor intensive industry. NFL owners are not suffering and players are paid commensurate with the revenue they generate for the owners.
about 1 year ago
stujo4
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The owners spent two years stockpiling lockout funds to finance them while they shut down the league.
The players have considered decertification for quite a while. Remember when the Saints players voted 59-0 to decertify should it be necessary was back in September? They also started a Let Us Play media campaign in preparation for a lockout. Everyone (players and owners) knew it was coming and everyone took steps to prepare for it.
The owners hired a lockout specialist to head their “negotiating” team.
The NFLPA brought in their own negotiation specialists, particularly Jeffrey Kessler. Oh, and Kessler has a lot to gain from NFLPA decertification.
The owners kept walking away from the negotiating table before making a ninth-hour offer that didn’t address the disputed revenues
I’m not sure what this is referring to. The NFL’s final offer agreed to “more than split the economic difference…” between players and owners, which is exactly what the players asked for on March 10th.
The owners shut down the league–as they obviously intended to do from the start.
The players decertified – as they obviously intended to do from the start
Plenty of blame to go around, Stuart. This isn’t just the owners fault. It’s everyone’s fault. The whole thing is a mess.
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by Dave Cariello on Mar 14, 2011 1:28 AM CDT reply actions 1 recs
Disagree
Everything the players did was in response to actions either taken or long-prepared by ownership. Yes, the players did prepare for decertification—but that was more in the character of a warning shot, a way of telling the owners “Don’t do what you’re planning on doing, or we’ll make you pay.” It’s what’s known as “deterrence,” whereas what the the owners have done is what’s known as “war.”
It was good while it lasted.
by MtnExile on Mar 14, 2011 7:15 AM CDT up reply actions 1 recs
Everything the players did was in response to actions either taken or long-prepared by ownership.
I don’t think you and Stuart are understanding what I am trying to say. I agree with you that the owners started this crap. The owners are at fault. But the two of you keep putting the players on a pedestal like they’re all high and mighty. Like I’ve said already, the owners suck for causing this whole situation. But the players equally suck because they fed us this “we want to play” bullcrap which is obviously nowhere near the truth. This entire lockout could have been prevented had they had a little more patience and weren’t so hard-headed.
Let me ask you a question: why did they players ask for a 50/50 split than balk when they received it? Is that the action of a group of players whose main purpose is to get a deal done and play football again?
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by Dave Cariello on Mar 14, 2011 9:54 AM CDT up reply actions
A 50/50 split?
Where does the league’s final proposal says this? I don’t see that. Are you referring to this?
1. We more than split the economic difference between us, increasing our proposed cap for 2011 significantly and accepting the Union’s proposed cap number for 2014 ($161 million per club).
Have I missed something? I haven’t heard that the owners lowered their demands that far. As for the owners’ final offer, I tend to believe the devil is in the details. Keep in mind, it’s the league and the owners who put that list out and they obviously want us all to believe that they were the only reasonable party. That “final offer” may look like a good deal on the surface, but maybe it isn’t once the fine print is disclosed. It kinda reminds me of all of those credit card offers I get where, on the front page, they make it sound like they’re practically giving me money, but when I flip the page over and examine the fine print, I see that they intend to charge me a 25% APR and a $500 annual fee.
"As soon as Tony (Dungy) said we had no chance, I knew we had 'em right where we wanted 'em"--Coach Sean Payton right after Super Bowl XLIV with the Lombardi Trophy firmly in hand. WHO DAT!!
by David "Satch" Kelly on Mar 14, 2011 10:35 AM CDT up reply actions
Let me ask you a question: why did they players ask for a 50/50 split than balk when they received it?
Because that is not all that happened. The total package was unacceptable.
"we want to play" bullcrap
That’s the absolute truth. The players only wanted to continue as is. It’s a sweet deal. Why should the players have to concede anything? The NFL is more profitable than ever. That’s why the owners won’t reveal the real numbers.
What a drag it is getting old
The players only wanted to continue as is. It’s a sweet deal.
Yes, I agree. They did. But the owners opted out. Sucks, but that’s what happened. I want to go to college again and continue to be supported by my parents. Unfortunately, life moves on. We can’t live in the past. You’ve just got to accept that.
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by Dave Cariello on Mar 14, 2011 12:14 PM CDT up reply actions
people are forced to live with their bad decisions
They pay too much for cars and end up being upside down in them (owe more on them than they are worth). They paid too much for houses, the market went south, and they end up being underwater on their mortgages (the house is worth less than what is owed on the mortgage).
None of this happened to the NFL. The league makes more money now than ever. The owners decided they wanted more of the money and less of it should go to the players.
Car buyers and home owners don’t get do overs. Neither should NFL team owners.
What a drag it is getting old
Car buyers and home owners don’t get do overs. Neither should NFL team owners.
I completely agree. Neither should Wall St. CEOs. But I’m not going to let myself get upset about something that’s already happened and that we can’t do anything about anymore.
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by Dave Cariello on Mar 14, 2011 2:58 PM CDT up reply actions
This isn't a do over
The owners had an opt out clause and decided to use it. The players agreed to ALLOW the owners to have an opt out clause. The owners have stated they see inherent long term unsustainability due to the changing economic landscape, because of increasing expenses associated with building new stadiums, and the like. I am not saying they are right, but what makes you feel they are lying, just because they won’t open their checkbook to God and everyone?
by theprogrammerman on Mar 14, 2011 3:35 PM CDT up reply actions
With so much at stake, wouldn’t the owners like to prove their position with financial statements? I think they would. But they can’t because the financial statements don’t support their position.
What a drag it is getting old
You think?
You honestly think there’s some financial data that the owners could give that would make the NFLPA turn around and say, “OMG! You guys are totally right. We should reduce our future salaries by every penny you’re asking for, and we’ll do whatever we can to make life easier for all league owners.”
Doubt it.
NOTHING will satisfy DeSmith. If it did, he’d get fired. He’s not paid to give in to demands of the league; even if they make fiscal sense. (I’m NOT saying the specific terms that were offered “make sense”. I’m saying it’s not his job to agree with the owners.)
"It's more than a handful. It's a handsful."
You honestly think there’s some financial data that the owners could give that would make the NFLPA turn around and say, "OMG! You guys are totally right.
No. Because it does not exist.
The owners are mad that they let the players have too much money and they want some back. boom
What a drag it is getting old
again, you have no proof it doesn’t exist. You just don’t like the owners.
by theprogrammerman on Mar 14, 2011 4:47 PM CDT up reply actions
Again, the owners refused to reveal it. It does exist. The owners will not allow the players to see it.
The owners are mad that they let the players have too much money and they want some back. boom
The Bandersnatch must exist
and thus does the Jabberwockey, for you have not been able to show it does not. You can use the that it must exist, you’ll just never see it. You have decided to read into the situation without proof. That is fine, but don’t present it as fact. You believe it exists, it is not fact that it exists.
by theprogrammerman on Mar 15, 2011 6:38 AM CDT up reply actions
I don't know what that s*** means
But I do know that if there really was a financial basis that would persuade the players to concede, there would have been allusions by the owners to it at the very least. All the owners could offer was “trust us”. There is no financial reason for the players to concede other than… see sig.
The owners are mad that they let the players have too much money and they want some back. boom
Sorry, trying to bring a bit of a literary bent. The premise you lay out is that because the owners aren’t giving the players every nuance of their business numbers, there is nothing to be seen in them. The owners offered to provide audited bottom line totals for organizations, by a mutually acceptable auditing organization. The players want to see what the organization is spending money on and if THEY don’t like it, they will reject it. In my mind, they have no right and no reason to have that information. You disagree.
by theprogrammerman on Mar 15, 2011 11:15 AM CDT up reply actions
your interpretation
you have no data to support that as a reasoning, whereas if I were in business, and let us not forget, in many ways, these 32 teams are in competition with one another for business, I wouldn’t want to open my books to my opponents.
by theprogrammerman on Mar 14, 2011 4:46 PM CDT up reply actions
these 32 teams are in competition with one another for business,
Holy crap, that’s the argument the owners use to try to convince the government that they are not a monopoly, which of course they are. Are you one of them?
The owners are mad that they let the players have too much money and they want some back. boom
If I have to trust a side, I’m going to trust the business sense of a guy like Arthur Blank who started Home Depo, over say, Heath Evans.
In Breesus' name we play
by Breesus Christ Superstar on Mar 14, 2011 5:02 PM CDT up reply actions
BCC, Mr. Blank is not working in your interests. And neither is Mr. Evans. Just FYI.
The owners are mad that they let the players have too much money and they want some back. boom
no doubt
In Breesus' name we play
by Breesus Christ Superstar on Mar 14, 2011 7:20 PM CDT up reply actions
Just an aside
The percentage of the NFL revenues earmarked for players is comparable to the percentage of budget earmarked for human resources in any labor intensive industry. NFL owners are not suffering and players are paid commensurate with the revenue they generate for the owners.
If that is the case, and I have no way of knowing if it is true or not, shouldn’t that percentage you are discussing also be split between all of the other employees of the organization, the coaches, the trainers, the management, the hot dog vendors?
by theprogrammerman on Mar 14, 2011 5:43 AM CDT reply actions
This is capitalist as all getout
I am not saying an equal share, but the statement is that this is a normal percentage for labor intensive organizations to spend on their labor. I am just saying that if that is the case, that percentage needs to also cover other individuals, not just the players. The argument that this is normal is specious. The payers are not the only employees that need to be fed out of that pie, and if the stats are indeed what they claim, they are supporting the owners side more than the players.
by theprogrammerman on Mar 14, 2011 11:39 AM CDT up reply actions
“the other employees of the organization, the coaches, the trainers, the management, the hot dog vendors” aren’t in the union.
"It's more than a handful. It's a handsful."
yes, but from a business standpoint, which is the argument, the owners are not out of the ballpark if that statistic is correct counting every employee as part of the pie they need to cut. If “labor intensive organizations” pay 50% in labor costs, it isn’t 50% to the superstars, it is also to the janitors and landscapers, and thus the argument that this is a “normal percentage” that the players want, makes it look like they just want their money, screw everyone else, we don’t care if all of the labor money goes to us. I am not saying this is the case, but the argument that was made, leads to that inevitable conclusion.
by theprogrammerman on Mar 14, 2011 1:49 PM CDT up reply actions
"propaganda" you wanna talk about "propaganda"?
EVERY word out of DS’s mouth is propaganda.
Nothing is factual… it’s pure smoke and mirrors to make poor football fans sympathize with the poor players union.
Please… if you don’t think there’s propaganda on BOTH SIDES, you’re a [I’ll leave the name calling out of this discussion].
BOTH sides aren’t telling the whole truth. We will NEVER know the whole truth.
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Picking sides in a argument when you don’t know all the facts is shortsighted, but picking sides in a argument when you don’t know any of the facts is downright foolish.
"It's more than a handful. It's a handsful."
by Dan Kelly on Mar 14, 2011 11:37 AM CDT reply actions 1 recs
The vast majority of decisions are made without all the facts being available. If you waited for every relevant fact to be at hand before taking sides in an argument, you’d die of old age with a long, long list of unresolved arguments.
The question isn’t, “do we have all the information?” but “do we have enough information to render a reasonable judgment?” We do know this: it was the owners who opted out of the CBA, and they did so having planned for years in advance to lock out the players as soon as the CBA expired, unless the players agreed to a new contract dramatically skewed in favor of ownership. We wouldn’t even be discussing this if the owners had
a. been happy with the CBA and continued it, or
b. explained candidly to the world just why it’s necessary to shave another billion dollars a year off the top in order to avoid destitution.
Under those circumstances, I find it hard to imagine the owners are being other than duplicitous, mendacious, bad faithy…whatever you want to call it.
It was good while it lasted.
by MtnExile on Mar 14, 2011 2:02 PM CDT up reply actions 1 recs
preparing for something is not the same as trying for it
If I ran a multi-billion dollar business, I would prepare for down times, even if I never wanted it to happen. If the players wanted to avoid this, don’t agree to a CBA with an opt-out clause. The owners saw an issue and pursued a completely legal and valid option that the players were aware of when they agreed to the CBA originally. Quit whining because businessmen decided to do something they could legally do to head off what they perceived as a problem. We wouldn’t be discussing this if the players hadn’t given the owners the option to see if they wanted to continue this CBA until it ran its full course either.
by theprogrammerman on Mar 14, 2011 2:07 PM CDT up reply actions
I would prepare for down times
The NFL hasn’t seen down times in many, many years and they certainly aren’t seeing them now.
What a drag it is getting old
And perhaps
That is why you and I aren’t running an NFL franchise. It isn’t about the current state, or even history, it is about what is expected in the future, and how things will play out the next 5 and 10 and 15 years. Just because I am making money now doesn’t mean I don’t look to the future and prepare for when I might not be making money, and attempt to be sure I still make money in those times.
by theprogrammerman on Mar 14, 2011 3:37 PM CDT up reply actions
what?
If the NFL really does start to lose money, they can opt out of the current CBA just like they opted out of this one. No way will they get tied down General Motors style deal that drags them to their death. And this is really not what we’re talking about, stay on point: The owners are mad that they let the players have too much money and they want some back. boom
What a drag it is getting old
If there isn’t an opt-out clause, they couldn’t opt out. They don’t just have blanket opt-out clauses, they had to follow a specific timetable. Give up the boom, you are far too impressed with your own logic, without having any data to back it up.
by theprogrammerman on Mar 14, 2011 4:48 PM CDT up reply actions
The vast majority of decisions are made without all the facts being available. If you waited for every relevant fact to be at hand before taking sides in an argument, you’d die of old age with a long, long list of unresolved arguments.
Good point. In the end, (besides being condescending to the great Peyton Manning and hurting those poor players feelings) the line in the sand was that the owners wouldn’t turn over every single expense report of their finances to the players. What a ridiculous demand in the first place! I was surprised the owners gave them as much independently auditied info as they did. Yet despite being more than the teams even disclose to each other, it wasn’t “enough” for the players.
For example, if I want to make an offer on a house, how ridiculous would it be for me to expect the owner to turn over the records of how much money they have invested in the house, their w-2 statement, the amount of money in their bank account and a list of the costs of every improvement they made, or else. No, I’m going to do my homework, decide what their house is worth to me and then buy the house or not.
I realize this is not the best example, but my point is that the complete detailed financial statements are irrelevant. The owners are not going to be nickeled and dimed over every expense and micromanaged by the players union. The players had enough financial info to answer the question “what is it worth to me to play in the NFL?” If what they were offered wasn’t enough and they want to decertify, fine. But, stop hiding behind the excuse of needing all the financials.
In Breesus' name we play
by Breesus Christ Superstar on Mar 14, 2011 3:21 PM CDT up reply actions 1 recs
rec'd
“Despite giving more [financial data] than the teams even disclose to each other, it wasn’t ‘enough’ for the players.”
And, it was NEVER going to be enough.
Even if they disclosed EVERYTHING and accounted for every penny and it was audited by 3 independent accounting firms, it wasn’t going to soften the NFLPA’s position one bit… no matter what the data said.
"It's more than a handful. It's a handsful."
And, it was NEVER going to be enough.
Of COURSE it would be enough. It would show that the owners aren’t losing money, they are actually MAKING MORE THAN EVER BEFORE. So then, what do they have to complain about? See my signature.
The owners are mad that they let the players have too much money and they want some back. boom
, they are actually MAKING MORE THAN EVER BEFORE
We don’t know that, but I’m sure the owners are doing just fine.
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by Dave Cariello on Mar 14, 2011 8:24 PM CDT up reply actions
Record revenues are a fact. If they foolishly allowed record costs exceeding the revenue growth, that really is their own fault. I don’t think that happened. A lot of that growth went in their pockets.
The owners are mad that they let the players have too much money and they want some back. boom
Revenues, ok…making more, as in net profits, ??? We don’t know.
We don’t how much Al Davis is suffering recuperating from drafting JaMarcus Russell, etc.
"In fact with that article from today that had him real lean and everything, I think I’m going to play him at corner this week in place of Tracy Porter."-Greg Williams in refefernce to Sedrick Ellis
We also know that the previous CBA (the one that just expired) was, to use your words, “dramatically skewed” in favor of the players and that the players agreed to the opt-out clause.
Did the owners “plan for years” to opt-out? Probably.
Was the NFLPA completely un-aware of these plans? Doubt it. They have smart guys on their side too.
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If you agreed to a deal that heavily favored the other party and it included an opt-out clause, wouldn’t you use it? Possibly even knowing you’d use it before you even signed the agreement?
Why would you sign it knowing you were going to opt-out, you might ask? There are many reasons… you didn’t want the income to stop flowing, so you agreed to a lopsided deal for the next few years, knowing you’d re-negotiate in the future.
And, THAT is possibly where the owners made their biggest mistake. Maybe they should have bargained harder for what was fair at the time. Maybe they should have included a more specific language in the opt-out clause or agreed in writing on what financial data would need to be handed over in future re-negotiations.
Is it possible that the union knew full well of the owners plans and even gave them assurances that they would re-negotiate in good faith when the opt-out became an option?
"It's more than a handful. It's a handsful."
Is it possible that the union knew full well of the owners plans and even gave them assurances that they would re-negotiate in good faith when the opt-out became an option?
I don’t think it works that way.
The owners are mad that they let the players have too much money and they want some back. boom
What a drag it is getting old
That’s how many player contracts work…
We’ll sign you for 5 years, but renegotiate your contract a couple years before it’s up.
Or, you can hold out and demand we pay you more even though we had an agreement for you to take a certain salary.
"It's more than a handful. It's a handsful."
let's stay on topic
The topic was labor negotiations not player contracts.
The owners are mad that they let the players have too much money and they want some back. boom
propaganda on both sides
But not equally false propaganda on both sides. False equivocation/equivalency.
What a drag it is getting old
Can you state your facts that show either side's propaganda is more valid than the others
other than “the news told me so” or “I hate the rich owners, the greedy bastards”
by theprogrammerman on Mar 14, 2011 3:37 PM CDT up reply actions
sure
The owners are mad that they let the players have too much money and they want some back. boom
What a drag it is getting old
and...
the players agreed that the owners could ask for some back and then got mad when they did.
"It's more than a handful. It's a handsful."
and…the players agreed that the owners could ask for some back and then got mad when they did.
That is not what happened. The opt out clause must have been for the scenario if profitability went down. No one held guns to the owners’ heads when they signed the CBA and it couldn’t have been with the intention of asking for concessions at the end of its term. But that’s what happened.
The owners are mad that they let the players have too much money and they want some back. boom
I haven’t seen any outright anger on the owner’s side. Mostly it is reported by Mike Silver on Yahoo (there’s a great source) third hand from someone that wasn’t even there. You have nothing that backs up this argument.
by theprogrammerman on Mar 14, 2011 4:50 PM CDT up reply actions
























