mardigan
05-20-2008, 01:39 PM
NFL owners vote unanimously to opt out of labor deal
By John Clayton
ESPN.com
(Archive)
Updated: May 20, 2008, 2:22 PM ET
ATLANTA -- The NFL officially notified its players union on Tuesday that it will opt out of the current collective bargaining agreement, which could lead to a season without a salary cap in 2010 and a possible lockout in 2011.
Owners voted unanimously Tuesday morning to opt out of the deal, which was extended in March 2006. The NFL had until November to opt out, but decided to do it early instead of waiting for the deadline.
The league, however, emphasized that it will keep negotiating with the NFL Players Association and said games will be played "without threat of interruption for at least the next three seasons."
"A collective bargaining agreement has to work for both sides," the NFL said Tuesday morning. "If the agreement provides inadequate incentives to invest in the future, it will not work for management or labor. And, in the context of a professional sports league, if the agreement does not afford all clubs an opportunity to be competitive, the league can lose its appeal."
NFLPA executive director Gene Upshaw had been anticipating the early termination of the agreement. He met with owners two weeks ago, and from that meeting he asked for audited financial reports from owners to document their economic problems.
"Roger [Goodell] e-mailed me this morning [and] told me they had a unanimous agreement to terminate the deal," Upshaw told ESPN's Chris Mortensen. "My response back to him? 'What a surprise.'"
Upshaw said Goodell's e-mail listed three reasons for the early termination: high labor costs, problems with the rookie pool and the league's inability, through the interpretation of the courts, to recoup bonuses of players who subsequently breach their contract or refuse to perform.
The highest-profile example of the latter was a court decision allowing Atlanta Falcons quarterback Michael Vick to keep $16.5 million in bonus money, despite pleading guilty to federal dogfighting charges and being sentenced to 23 months in federal prison.
According to the NFL, clubs are obligated by the collective bargaining agreement to spend almost $4.5 billion on player costs in 2008. Players received around 60 percent of league revenues. Growing costs of stadium construction and operations also figured into Tuesday's decision.
"The current labor agreement does not adequately recognize the cost of generating the revenues of which the players receive the largest shares; nor does the agreement recognize that those costs have increased substantially -- and at an ever increasing rate -- in recent years during a difficult economic climate in our country," the NFL said.
"It was exactly what we expected. I'm glad they did it now because we knew it was coming," Upshaw said. "But this is no surprise and the process will move forward. We'll have more to talk about later.
"When we negotiated this deal we had two stop points that you could decide to terminate, either side. Obviously, the owners have decided to take this termination early. We expected it. But it means that there is football through 2010, not through 2012."
NFLPA outside counsel Jeffrey Kessler told The Wall Street Journal prior to Tuesday's announcement that if the owners were to opt out, the union "plans to ask for a greater share of revenues."
Kessler added that "Every deal we've gotten with them, we've received another increase."
"We are resolved to do our best to achieve a fair agreement that will allow labor peace to continue through and beyond the 2011 season," the league said Tuesday.
In other business at the league meetings, NFL owners are expected to hear 15-minute presentations from Indianapolis, Glendale, Ariz., and Houston on bids to host the Super Bowl in 2012, with a decision expected Tuesday afternoon. The Colts, who are opening a brand-new stadium this fall, lost out last year to the Dallas Cowboys' new stadium in Arlington, Texas, for the 2011 game.
As part of its bid, Indianapolis has envisioned an "NFL Village" covering three downtown blocks, as well as a privately funded athletic facility that would be used for practices before the game and then turned over to a city high school.
John Clayton is a senior writer for ESPN.com. ESPN NFL reporter Chris Mortensen and The Associated Press contributed to this report.
http://sports.espn.go.com/nfl/news/story?id=3404596
By John Clayton
ESPN.com
(Archive)
Updated: May 20, 2008, 2:22 PM ET
ATLANTA -- The NFL officially notified its players union on Tuesday that it will opt out of the current collective bargaining agreement, which could lead to a season without a salary cap in 2010 and a possible lockout in 2011.
Owners voted unanimously Tuesday morning to opt out of the deal, which was extended in March 2006. The NFL had until November to opt out, but decided to do it early instead of waiting for the deadline.
The league, however, emphasized that it will keep negotiating with the NFL Players Association and said games will be played "without threat of interruption for at least the next three seasons."
"A collective bargaining agreement has to work for both sides," the NFL said Tuesday morning. "If the agreement provides inadequate incentives to invest in the future, it will not work for management or labor. And, in the context of a professional sports league, if the agreement does not afford all clubs an opportunity to be competitive, the league can lose its appeal."
NFLPA executive director Gene Upshaw had been anticipating the early termination of the agreement. He met with owners two weeks ago, and from that meeting he asked for audited financial reports from owners to document their economic problems.
"Roger [Goodell] e-mailed me this morning [and] told me they had a unanimous agreement to terminate the deal," Upshaw told ESPN's Chris Mortensen. "My response back to him? 'What a surprise.'"
Upshaw said Goodell's e-mail listed three reasons for the early termination: high labor costs, problems with the rookie pool and the league's inability, through the interpretation of the courts, to recoup bonuses of players who subsequently breach their contract or refuse to perform.
The highest-profile example of the latter was a court decision allowing Atlanta Falcons quarterback Michael Vick to keep $16.5 million in bonus money, despite pleading guilty to federal dogfighting charges and being sentenced to 23 months in federal prison.
According to the NFL, clubs are obligated by the collective bargaining agreement to spend almost $4.5 billion on player costs in 2008. Players received around 60 percent of league revenues. Growing costs of stadium construction and operations also figured into Tuesday's decision.
"The current labor agreement does not adequately recognize the cost of generating the revenues of which the players receive the largest shares; nor does the agreement recognize that those costs have increased substantially -- and at an ever increasing rate -- in recent years during a difficult economic climate in our country," the NFL said.
"It was exactly what we expected. I'm glad they did it now because we knew it was coming," Upshaw said. "But this is no surprise and the process will move forward. We'll have more to talk about later.
"When we negotiated this deal we had two stop points that you could decide to terminate, either side. Obviously, the owners have decided to take this termination early. We expected it. But it means that there is football through 2010, not through 2012."
NFLPA outside counsel Jeffrey Kessler told The Wall Street Journal prior to Tuesday's announcement that if the owners were to opt out, the union "plans to ask for a greater share of revenues."
Kessler added that "Every deal we've gotten with them, we've received another increase."
"We are resolved to do our best to achieve a fair agreement that will allow labor peace to continue through and beyond the 2011 season," the league said Tuesday.
In other business at the league meetings, NFL owners are expected to hear 15-minute presentations from Indianapolis, Glendale, Ariz., and Houston on bids to host the Super Bowl in 2012, with a decision expected Tuesday afternoon. The Colts, who are opening a brand-new stadium this fall, lost out last year to the Dallas Cowboys' new stadium in Arlington, Texas, for the 2011 game.
As part of its bid, Indianapolis has envisioned an "NFL Village" covering three downtown blocks, as well as a privately funded athletic facility that would be used for practices before the game and then turned over to a city high school.
John Clayton is a senior writer for ESPN.com. ESPN NFL reporter Chris Mortensen and The Associated Press contributed to this report.
http://sports.espn.go.com/nfl/news/story?id=3404596