1 / 21

Adjusted Winner Applied to the 2011 NFL CBA

Adjusted Winner Applied to the 2011 NFL CBA. By: Matt Renault and Joe Moleski. History of Collective Bargaining Agreements. The NFLPA was formed in 1968, and in that year the first CBA was reached New CBAs are agreed on in 1977, 1982, and 1993

tyler
Download Presentation

Adjusted Winner Applied to the 2011 NFL CBA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Adjusted Winner Applied to the 2011 NFL CBA By: Matt Renault and Joe Moleski

  2. History of Collective Bargaining Agreements • The NFLPA was formed in 1968, and in that year the first CBA was reached • New CBAs are agreed on in 1977, 1982, and 1993 • The 1993 agreement is extended until the owners opt out in 2008, meaning it will expire in 2011

  3. Why the Owners Opted Out • Officially, the owners stated that they were losing money due to increased costs and needed a higher share of revenue • In reality, under 1993 CBA, higher earning teams gave money to lower earning teams • This didn’t account for the extra costs higher earning teams had • This was a dispute between owners, but needed a new CBA to settle it

  4. The Lockout • NFLPA votes in 2010 to renounce collective bargaining rights in event of CBA expiring • This would make an antitrust lawsuit possible • CBA expires on March 11, 2013 • NFLPA renounces collective bargaining rights • 10 NFL players file Brady antitrust suit against owners

  5. The Lockout, cont. • The lockout was invalidated and revalidated multiple times by different courts over the summer • While both sides want an agreement, owners have contingency plans • 2011 Draft was still allowed to happen • Owners approve a settlement on July 21 • Ten players in Brady suit approve an adjusted settlement July 25 • Players ratify on August 4, ending the lockout • Only one preseason game was missed

  6. The Conflict The Owners The NFL Players Association

  7. Points of Contention • Salary Cap • Player’s Safety and Health Benefits • Revenue Sharing and Television Contracts • Transparency of Financial Information • Rookie Salaries • Season Length • Free Agency Guidelines

  8. Salary Cap The Owners – 10 Points The NFLPA – 15 Points The players want more money Want an increase in the maximum salary cap, minimum salary cap, and minimum individual player salary • Would like to keep this where it is to save money • Are willing to agree if they can cover most of it with money saved from decreasing rookie salaries

  9. Player’s Safety and Health Benefits The Owners – 5 Points The NFLPA – 20 Points Players want less rigorous off-season and in-season training and practice They want to build more health facilities and get more physical trainers and doctors. • The owners do not really care about this • They only care about their best players not getting injured • Owners have no reason to put a lot of value into it

  10. Revenue Sharing and Television Contracts The Owners – 20 Points The NFLPA – 15 Points The players want to remove the money off the top and divide everything instead. Wanted to remain around the same percentage they had (about 59%) • The owners wanted more money off the top. Around $2.4 billion instead of $1 billion • Wanted to increase their percentage of the remaining revenue (about 41%) because of an increase in costs

  11. Transparency of Financial Information The Owners – 15 Points The NFLPA – 10 Points The players want the owners to disclose financial information to prove they really need the money • The owners don’t want to disclose anything (perhaps because they were really making more than enough money)

  12. Rookie Salaries The Owners – 25 Points The NFLPA – 5 Points Players don’t care about this (veterans are negotiating) Will use this as a bargaining chip to appease owners • The owners want to impose a new rookie wage scale or salary cap to prevent exploding rookie contracts • This is very important because it has essentially been a black hole for revenue • See: JeMarcus Russell’s $61 million contract

  13. Season Length The Owners – 15 Points The NFLPA – 20 Points Players really want to keep season the same length for health reasons Same value as safety/health because players see it as a safety/health issue Season had not been extended since 1978 • Owners want to extend season to 18 games to make more money (increase league’s total revenue) • Somewhat important, not as big as revenue percentage

  14. Free Agency Guidelines The Owners – 10 Points The NFLPA – 15 Points The players want this deadline moved up to 4 years in league This would allow players to make the money they deserve • The owners want unrestricted free agency to remain limited to 6 year veterans • Prevents them giving massive contracts to players when rookie contract expires

  15. Applying the Adjusted Winner Method

  16. Adjusted Winner Showing Rations

  17. Splitting Season Length This is entirely possible. While the item is not fluid per-se, there is possibility for different compromises. 60 + 15x = 70 - 20 x x = 0.29 Therefore, the Owners would get 29% of season length, and the Players would keep 71%. This would result in 60 + 15(0.29) = 70 - 20(0.29) = 64.3 points each. This split could be represented by extending regular season to 17 games and shortening preseason to 2 games

  18. Final Results – Adjusted Winner • The owners get revenue sharing and television contracts, transparency of financial information, rookie contracts, and 29% of season length. • The players get player salary cap, safety and health benefits, free agency guidelines, and 71% of season length.

  19. Final Results – What Actually Happened • The owners got revenue sharing and television contracts, transparency of financial information, and rookie contracts • The players got player salary cap, safety and health benefits, free agency guidelines, and season length

  20. Comparing our Solution to Reality • Only difference was that season length was not split in reality and went entirely to players • So easy to predict because many items were essentially predetermined • Everyone knew a new rookie wage system would be devised, players would get health benefits, and owners would end up with more revenue • This agreement could have been made without lockout IF both sides had been reasonable • Both sides end up better off due to winning most important points and only missing one preseason game

  21. Sources • http://www.cbssports.com/nfl/story/15348620/lockout-judgements-winners-losers-turning-points (how it ended up) • http://sports.yahoo.com/news/fans-guide-nfl-labor-battle-195100738--nfl.html (some of the disputes coming into lockout) • http://en.wikipedia.org/wiki/2011_NFL_lockout (general information on lockout) • http://www.forbes.com/sites/sportsmoney/2011/07/21/who-won-the-2011-nfl-lockout/ (Who won overall) • http://www.theatlantic.com/magazine/archive/2013/10/how-the-nfl-fleeces-taxpayers/309448/ (Owners secretly making a ton)

More Related