NFL Players Should Use the CBA to Force the NFL to Become Player Centric

NFL players are at a pivotal moment. They are faced with the decision of whether to approve the proposed collective bargaining agreement (CBA). For months, NFL ownership and the NFL Players Association (NFLPA) have worked to create an equitable CBA. On February 26, 2020, the NFLPA Board of Player Representatives voted to send the proposed CBA to the players for a full membership vote. Whether this proposed agreement is truly equitable is a matter of opinion. Many are of the opinion that it is not. Critics argue that the owners are essentially getting everything they want while the players are not getting enough in return. Given everything NFL ownership is getting compared to what the players are getting, the deal is not the most equitable. Accordingly, the players should take a stand and demand more.

Summary of the Owners and Players Benefits in the Proposed CBA

The 17th Game

First, NFL ownership would get a major victory by simply getting the players to agree to a deal at this juncture. The current CBA does not expire until March 3, 2021. From the players’ standpoint, there is not much reason to rush. The players are not yet facing a lockout. The 2020-2021 NFL season can be played under the current CBA. Therefore, any threat of a lockout would be a whole season away. Second, if the players agree to this deal the owners will have the thing they wanted most – a 17th regular-season game. The owners have wanted this for a long time as they know it will lead to an increase in revenue.

Listen to the Podcast with Former NFLPA President

Anchor // iTunes // Spotify // Breaker // PocketCasts // Google Play // Stitcher // RadioPublic // Castbox // Overcast //

In fact, NFL ownership is set to enter negotiations with broadcasters and streaming services after the start of the NFL league year on March 18, 2020. NFL ownership would love to enter those negotiations with a new CBA in hand without the threat of a future lockout. It is precisely this fact that gives the players a bit of leverage in these negotiations. The players have something the NFL refuses to move forward without – the 17th game. The players should use that to their advantage. They should also use the fact that NFL ownership needs to enter broadcast negotiations without the threat of a future lockout looming. These two things alone could be enough for the players to increase the revenue split to 50/50.

The Revenue Split

Under the proposed CBA the revenue split will only increase to 48%. The revenue split has the potential to increase to 48.5% if there is a 60% increase in TV revenue. Therefore, the ability to receive a 48.5% revenue split is not guaranteed. Furthermore, the players will have no opportunity to receive a 50/50 revenue split for at least 10 years. As written, the proposed CBA will be in effect for 10 years with no opt-out provision. A ten-year deal with no opt-out provision should be a major concern to the players.

Even with Salary Increases, the NFL Players are Not Getting Enough in Return

It is true that many players will receive a significant increase in their salaries as early as 2020. Many players’ salaries could increase by roughly $100,000 next season if the CBA is agreed to. However, those increases are not enough to make up for the inequities of the deal. Many players have recognized this and have taken a stand against the proposed CBA. Several high profile players announced their intent to vote against the proposed CBA urging other players to vote no. One of those players is Green Bay Packers’ star quarterback Aaron Rodgers.

Another one is Seattle Seahawks superstar Russel Wilson.

Wilson stated that “The NBA and MLB are doing it right. Players come first.” This was a very interesting take on the issue and is even more reason for the players to take a stand. The NBA and MLB are considered by many to be more progressive leagues than the NFL. The NBA and MLB are viewed that way because they are more player-centric. If NFL players want the NFL to become more player-centric, they have to be willing to stand up for themselves. NFL players should not agree to a deal where the franchise tag remains intact while the penalty for training camp holdouts becomes more severe. NFL Players should take their time and make the most out of their negotiation power.

Let’s Face The Facts: NBA Superstars Are Underpaid

NBA Superstars Underpaid with the salary cap

Though the above is a live look of the New Orleans Pelicans ticket staffers learning their team won the 2019 NBA Draft lottery and right to draft Zion Williamson, it’s safe to say the Brooklyn Nets sales team experienced this same joy at the start of NBA Free Agency. The signing of Kevin Durant and Kyrie Irving signifies a coming of age story for the Nets and the end of an era for their crosstown rival. Once heralded as the “Mecca” of basketball, the aura that surrounded Madison Square Garden is gone. New York Knicks’ owner James Dolan was reportedly hesitant to sign Kevin Durant to a maximum deal. But if your team’s president has to release a statement responding to angry fans, that’s clearly not the correct business decision.

NBA Star Market Value

NBA Superstars Drive Revenue

People pay to see stars, and teams know it. Immediately after signing the two-all stars, an all-out race for Nets season tickets ensued. Currently, the cheapest ticket available is $4,000 a seat, which is quite an expense for a team that won a total of 48 games prior to the 2018-2019 NBA Season.

NBA stars do more than put fans in the seats; they serve as an economic catalyst for all other aspects of their team’s city. When Lebron James announced his “Decision” in 2010, not only did he take his talents to South Beach, but also $48 million in annual revenue. When James re-signed with Cleveland in 2014, Professor Leroy Brooks estimated his return added nearly $500 million to the local economy. The Cavaliers suffered another negative swing when Lebron moved west to the Los Angeles Lakers.

NBA teams lack profitability and marketability without a star player. Fans routinely discuss how players aren’t worth a certain contract. When Kobe Bryant became the league’s highest-paid player in 2014, he did so to show players should not feel forced to take less than their worth and stated:

“Athletes are the ones that are in the public eye the most. And so their salaries are constantly talked about, so it’s very easy to look at the athlete and say, ‘You should be doing more and you should be taking less,’ when the reality is that your market value is so much higher than what people understand.

” ‘Yeah, yeah, yeah, but you still should be taking less to win. Why do we have to do that? Because the owners locked us out and imposed a hard cap where we ‘have to’ take less in order for them to generate more revenue. Right? But meanwhile, they go and sign a TV deal that’s a billion dollars up from the last one, but that doesn’t get talked about. Nobody complains about that.”

Credit: CBS Sports

Maximum Value Under The NBA Collective Bargaining Agreement

Credit: Larry Coon / CBA FAQ

Maximum salaries are the product of the 1998-1999 NBA lockout initiated by owners who feared player salaries were getting out of control. After the Minnesota Timberwolves gave 21-year old Kevin Garnett an extension worth six years, $126 million, billionaire owners decided they couldn’t “have the inmates running the prison.”

Now, maximum salaries are dependent on the player’s years of services. In a truly open market, superstar players such as Lebron James, Kevin Durant, Giannis Antetokounmpo, Kawhi Leonard, James Harden, Stephy Curry, Joel Embiid, and Anthony Davis would be worth at least $75 Million. Joel Embiid, Ben Simmons, Klay Thompson, Kyrie Irving, Russell Westbrook, and Nikola Jokic would easily pull in contracts worth $50 million to $60 million per year. Hell, Zion Williamson is on the verge of signing a $100 million shoe deal; it makes no sense that his perceived NBA value is $45 million over four years.

Despite the league’s continued growth, it’s unlikely that the cap will rise to a level that will allow players to receive their true worth. While it may be hard to quantify the value a superstar brings, one method would be to allow teams the ability to sign a player outside of cap space. Instead of retiring jerseys, if owners truly want to show their appreciation, this is the route they should take. Then, the future Lebrons, Durants, and Antetokounmpos would be able to live in the world Kobe hoped to create for his fellow stars.

Follow Alan Wilmot on Twitter and Instagram @alanwilmotlaw

Negotiating the CBA: The Biggest Issues Facing the NFL and NFLPA

CBA: NFL NFLPA Roger Goodell DeMaurice Smith

The above is a far cry from 2017 when NFLPA Executive Director DeMaurice Smith declared the likelihood of a strike or lockout of the 2021 NFL Season “almost a virtual certainty.” What’s changed? At the time, one major issue was the league’s position on national anthem protests, which was eventually settled after the NFLPA filed a grievance in 2018. The NFL’s profitability is also motivation for resolution, with yearly revenue approaching nearly $14 Billion per year.

No major issues have surfaced during the groups’ two formal sessions, with NFL Commissioner Roger Goodell describing the discussions as “direct and open.” But it’s a long way to 2021. Below are some of the biggest issues surrounding extending the current NFL Collective Bargaining Agreement:

Stadium Credits

It’s laughable a group of billionaires believe they are entitled to benefits to finance stadiums. Stadium credits are player-funded allowance, taken from NFL revenue before it is split with the players to alleviate costs associated with construction. Owners used their full amount of credits provided with the 2011 CBA. With the league looking to build new stadiums in Las Vegas and Los Angeles and renovate existing ones in other cities, this topic has developed into a strong negotiation point.

Players receive roughly 47 percent of revenue earned by the league, down from 50 percent due to the last round of negotiations. With stadium credits decreasing the total amount of sharable revenue, the NFLPA must fight to (1) decrease the amount of allocatable stadium credits or (2) increase their revenue share. Otherwise, it will be the players, and not the billionaire owners, left footing the bill.

Marijuana

Credit: The Dan Patrick Show

Last week, the NFL and NFLPA announced the creation of a “Joint Pain Management Committee” to research pain management and alternative therapies. In other words, the NFL is slowly opening the door to players using marijuana as a means to combat injury. On the heels of XFL Commissioner Oliver Luck stating the XFL would “prefer not to test for marijuana,” coupled with the legalization of marijuana in California, Nevada, Colorado, and other states, it only makes sense for the league to modify its stance.

Two-time Super Bowl champion Chris Long recently admitted to using marijuana throughout his playing career. The NFL tests for the drug once per year, usually within the first two weeks of training camp. Once passed, players are free to smoke at will. At this point, the NFL’s policy is merely for show, and the next iteration of the CBA should remove punishments for use.

Guaranteed Contracts

Kirk Cousins is the first quarterback in NFL history to sign a fully guaranteed multi-year deal. Notwithstanding, players still struggle to obtain their worth. This is the reason why players such as Russell Okung and Todd Gurley believe a strike is necessary.

Owners of one of the world’s most violent sports should not be able to escape paying fully guaranteed contracts. Why this issue isn’t presently being discussed brings into question the seriousness of the current state of negotiations. NFL careers can end at a moment’s notice. If a structure for greater guarantees is not obtained now, the NFL will continue to kick this bucket down the road.

Follow Alan Wilmot on Twitter and Instagram @alanwilmotlaw