Saturday, February 13, 2010

What the NFL CBA/LOCKOUT is REALLY about!

Many of us believe the current CBA negotiations are about contracts and owners wanting more money. But, there is a much more interesting and bigger picture to the reasons behind all of this. The NFL has done well keeping it from our eyes but after doing some fact finding here is what it boils down to. The NFL wants to be a Corporation essentially. The laws passed by every President since Ron Reagan have tilted the balances in the favor of corporate law and the NFL wants in.

In 2001 the hat company "American Needle" sued the NFL on antitrust grounds for granting exclusive licensing rights to Reebok instead of spreading the licenses around as it had previously done. This, American Needle said violated Section 1 of antitrust law since the 32 teams would have "colluded" to make a decision giving one company a monopoly instead of promoting competition. A Federal district court in Chicago said it wasn't collusion but rather was a decision made by a "single entity" called the NFL so it wasn't collusion of multiple companies to create monopoly contract with Reebok. So, American Needle petitioned the case, moving it to the Supreme Court and here is where the NFL found a great opening.

The NFL then got in line and SUPPORTED American Needle's case and said yeah, we are a single entity like the District court said. Why???? Because then the NFL would not be 32 teams competing with each other but rather a single entity whom would be competing with other forms of entertainment. In essence, a corporation! Then it could technically make decisions on whom it gave a contract to for licensing and not be accused of collusion. Even more, it would make the NFL almost immune on antitrust cases the Players Union have used in creating Free Agency and Benefits.

In easy terms, the whole means of bargaining would be shifted to the NFL's favor since teams would be able to "collude" on issues such as the salary cap and allow them to become a solid front against the players. If all the teams agree on a set "policy" then a free agent and the Union will have nowhere to go and no real strength to sue them on the basis of antitrust.

So what do you think the Supreme Court will do? Hmmm, given their continuous rulings in support of corporations and the amount of money the NFL has, I think this will happen easily. Congress will have a right to repute the decision and ultimately overturn it, but given their handling of MLB's steroids issue, this would be laughable. Add another unchecked powerhouse company to the growing list in our land of "equality". This is why there will be no CBA this year until the ruling comes down and why there is a threat of a lockout.

What is more bothersome is that this will affect all other sports leagues. This is why all Players Unions and all Leagues are closely following this. How will this all affect us the fan? What will happen to ticket prices if every show in town is decided to be the same price so that we don't have the voice to demand lower prices or we will go somewhere else? Imagine all the Leagues defining a base ticket price. How about the NFL exclusively on NFL network causing you to have to buy the option if you want to watch games? Online content? Blackouts? Will teams agree to get rid of revenue sharing and create a situation like Baseball where teams in the bottom will always be there? How fun will supporting the home team be? Just at the apex of the NFL's popularity, they seem destined on ruining it for the little guy...us.

1 comment:

  1. Very eye opening...We the fans definitely need to see how this plays out. I hope the NFL understands how they got to this point over the years. It sounds like they want to 'bite the hand' that feeds them. Good post.

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