Sunday, February 6, 2011

The Ramifications of an NFL Lockout


The Super Bowl is the culmination of a long journey for two NFL teams with one being crowned the winner.  It might possibly be the last NFL game that fans will see for a while.  There is still the looming possibility that a lockout will occur on March 4 if an agreement can not be reached between the owners and the players.

The NFL has not had any labor related work stoppages since 1987 which is longer than MLB, the NBA, and the NHL.   There were two strikes in the 1980s, one in 1982 and in 1987.  The ‘82 strike lasted 57 days and reduced the season to nine games.  The main issue was gross revenues. The player’s association wanted the players to get 55% of the gross revenues. They ended up accepting a one time $60 million payment to return along with upgraded minimum salaries and enhanced benefits.  The 1987 strike only cancelled one game and replacement players were used for three weeks.  The main issue in this strike was free agency.  While free agency was not granted, eventually it came about in 1993 as a result of an anti-trust lawsuit.

The current collective bargaining agreement was supposed to expire at the end of the 2012 season but in 2008 the owners opted out two years early.  The 2010 season did not have a salary cap.  The main topics this time around are extra regular season games (adding two more), player insurance, limits on rookie salaries, revenue division, and benefits for retired players.  Losses could reach $1 billion dollars with no agreement by September.

This could be potentially disastrous for the NFL.  The longer that this lockout drags on affects many different things.  Free Agency, offseason workouts (held at training facilities), the subsequent signing of drafted players, mini-camps, training camps, preseason, and regular season games would all be affected. Any of these being delayed would hamper the start of the 2011 season if one in fact would take place.  Some think there may not be a 2011 season.  The NFL has enjoyed tremendous success over the last few years and remains the most popular sport. A lockout would severely damage its image and I believe may have an affect much like with baseball following its strike in 1994. It took a few years to get fans back in the game with some not going back at all.  If the NFL wants to save the sport, it needs to come to some sort of agreement with the players. Better sooner rather than later.

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