NFL Lockout: Biggest Sports Business Conflict of 2011

            When I think of any sports lockout, the only word that comes to mind is “greed.”  I have researched lockouts from the NHL, NBA and NFL and it all boils down to the owners wanting more money than the millions, or even billions, that they are already worth.  What irks me the most is the owners asking a salary cut from the players, the ones that make the league, to put more money in their own pockets.  Between the three lockouts, I feel the one with the NFL was the biggest sports business conflict in the last five years. 

            First off, in case no one knows what a lockout is, I’ll get that out of the way.  It’s basically a strike but instead of the employees refusing to work until a pay negotiation is reached, the owners refuse to let the players play until a new negotiation is reached.  In the case of the 2011 NFL lockout, it lasted 132 days.  Here is how it started:

            In March of 2006, with a vote of 30-2, the owners voted to extend the CBA for 6-years, with the Bills and the Giants opposing it.  However in May of 2008, the owners had a change of mind and wanted to opt out of the CBA following the 2010 season.  According to an article on ESPN.GO, the NFL stated, "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."  This is when things started to change.

            March of 2010 came around and it was the final league year under the current CBA.  This was also the first time since 1993 that the league had started the season without a salary cap.  On top of that, player movements will be restricted.  Some examples include the number of accrued seasons needed to become a free agent and additional franchise player tags.

            Skipping down the timeline to February 2011 where the NFL walks away from a negotiating session with the NFLPA on how to divide the league revenue.  From this time all the way to March 11, 2011, no negotiations have been made.   Now it’s time for the courts to step in.  On April 6, 2011, Judge Susan Nelson holds a hearing on the plaintiff’s request to end the lockout.  After several meetings and court dates with the players, owners and the Commissioner, the NFL owners approved a proposed 10-year labor agreement with the NFLPA on July 21, 2011, leaving the end of the lockout up to the players.  It finally ended on July 25, 2011.

            What’s funny is I don’t think the owner’s really cared if the season went on or not because they would receive $4 billion in TV money.  Of course the NFLPA would expect money from that $4 billion, but it’s said that the owners would most likely appeal that.  Luckily it didn’t get to that point.  To add to the losses that would’ve happened if this lockout didn’t end are:

-Rookies andEndorsement Deals:  No company in the right mind is going to endorse a player and spend millions of dollars if there is not going to be a season.

-Networks andAdvertisers: The Super Bowl is the highest rated show…EVER!  All football advertisers would have to go elsewhere if there’s no football.  This could mean to less appealing products and services. 

- Fans:  Fans will miss our on America’s favorite sport.  This means no fantasy football, no video’s to watch, highlights to email, Facebook statues to post, etc. 

- Stadium Cities andEmployees:  Without football, several employees of each stadium are out of a job.  The city also suffers from not having home games to help bring in revenue for local businesses.  If they aren’t making money, they can’t keep their employees.

- Merchandise Sales:  With merchandise up to $2.1 billion in 2010, it shows that it brings in a lot of revenue for the teams.  That’s a big chunk of revenue subtracted from the league if this lockout didn’t end.

Thank goodness this lockout DID end in a negotiation that would benefit all parties.  Instead of the owners worrying about how much more money they can fit into their pockets and bank accounts, they should look at the bigger picture in how a lockout could ruin things for a lot of people.  These are just a few reasons why the NFL Lockout of 2011 was one of the biggest sports business conflicts in the last five years.