Trouble Spells For NFL As Owners And Players Hit A Deadlock

 

Football fans, be forewarned: the NFL may go on strike in 2011. Owners and players are locked in disagreement.

Things are really moving in that direction. Owners have backed out of the current collective bargaining agreement with the players. The first step toward strike is an uncapped season, and that is in place for 2010-2011 season already. Assuming the disagreement is not resolved, next year will see a national football strike no NFL season that year. You read that right, the months of September through January would be empty in the minds of many sports fans.

The potential strike, if it happens, will be caused by what owners see as unfair salaries going to players. Specifically, owners want a different rookie wage scale, so that they can give new players less lucrative contracts in case the player doesn’t work out.

Currently, there is no such way to hedge bets. Owners end up paying out huge sums via guaranteed contracts to rookie players. These players may or may not meet expectations but will be paid these huge sums regardless.

The overall pay scale in the NFL is also under attack by owners. Currently, players are entitled to 59.5% of the total revenues that the league brings in. Owners are not happy about this. They have to deal with falling revenues at the same time that they have to manage the rising costs of maintaining stadiums.

Also, owners have the whole of costs for promotion and league development. They bear all of the costs but have to pay out the majority of the profits out to another group that doesn’t spend a dime on promotion.

It is still unclear whether an agreement is likely. The outcome of this conflict is going to greatly impact the NFL, that is for certain. A growing sport that is trying to get more fans does not want a lockout. Nor do players they won’t be getting paid for a year if there is a strike.

It’s anybody’s game, as it were. A lockout will be very damaging to the NFL’s chances to expand overseas, into Europe and Latin America. Plus, it will really screw up the NFL’s chances of growth and increasing profits.

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