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A New CBA - Part 2

 

In Part 2 of our continuing look at the Labor Talks, we come to the area of consequence that will be the source of negotiation. The Issues.


For reference, you can find Part 1 here.

Star-divide

1) Rookie pay scale

NFL Commissioner Roger Goodell believes there's something wrong about the system.

"The money should go to people who perform. Now, with the economics where they are, the consequences if you don’t evaluate that player, you can lose a significant amount of money".

He also claims that it's ridiculous to reward untested rookies with lucrative contracts and wants the issue addressed in contract talks. The NFLPA Executive Director DeMaurice Smith agrees. This issue will be resolved in the new CBA. Consider it like two sides are in Verbal Agreement: it just remains for the details to be sorted out.

Goodell also feels there should be a provision that allows the players to renegotiate after performing on the field. I can see the players agreeing to this also.

 2) Percentage of revenue assigned to salaries

 A recent NFLPA study claims the owners will collectively lose $150 million in non-recoverable expenses if there is a lockout. For owners hustling to cut deals with state-sponsored lotteries, some worth between only $1 million and $2 million per year in revenues, $150 million is a lot of money. The owners will have to give some serious concessions to the players for them to budge off the 59% revenue figure. More freedom with Free Agency, and some pension considerations. The NFL also said it wanted to address recouping bonuses from players who violate their contracts, as well as establishing a tighter salary scale for rookies who currently secure multimillion-dollar contracts. This is the Major point of contention for the two sides, and everything else will take a back seat. As Navin R. Johnson would say, "Ah, it's a profit deal."

3) Veteran Pensions and Disability

It is Smith's intention to take better care of retired players, and his insistence on more transparency from the league will cause major problems. "There are a number of significant consequences to our retired players in an uncapped year", said Smith.

 There are significant consequences for current players in an uncapped year. Disability Benefits for retired NFL players are paid from two separate funds. One of those funds is protected by law and cannot be reduced if their were a work stoppage. However, the other fund is supplemental and can certainly be reduced if a new CBA is not reached prior to a work stoppage in 2011. For a football-related disability, i.e., one that occurred on the field and renders a player unable to work in another occupation within 6 months of the injury, a player gets $224,000 in disability payments now. In an uncapped year, the payment would shrink to $48,000 annually. An active player who becomes disabled in an accident off the field get $134,000 a year now; he’d get $48,000 in the uncapped year. NFL players could lose their family's health insurance next spring, plus their 401(k) retirement plan matches and nearly every other league-provided benefit.

Commissioner Goodell has tried to reassure retired players that their pensions and disability benefits would not be reduced in a labor dispute next year, refuting statements made by the NFL Players Association. Goodell claims that these statements have no basis in fact.

"In all my conversations with DeMaurice Smith, he has never raised the subject with me," Goodell wrote in response to questions raised by NFL Alumni board members. "Had he done so, my answer would have been unequivocal — there will be no reduction in pension or disability payments to retired players during 2010."

In a statement released by the NFLPA, Smith responded by challenging the NFL to guarantee paying benefits beyond 2010. "If these benefits are now being guaranteed for one year by the NFL, which they currently are not, then that's a win for the players," NFLPA benefits director Miki Yaras-Davis said.

Portions of Goodell's letter were released by NFL Alumni and Fourth and Goal, an independent retired-player advocacy group. Goodell was responding to concerns raised by the groups' directors after NFLPA members stated retired players would take a hit in an uncapped year. In the letter, Goodell said that since 2007, owners consistently have agreed not to reduce funding to retired players if a new collective bargaining agreement is not reached and results in the salary cap being lifted next season. The debate is viewed as a sign both the league and the union are courting the support of retired players in negotiations to reach a new collective bargaining agreement.

Numerous former players have had a long-standing rift with the NFLPA, believing their needs were dismissed by former executive director Gene Upshaw, who died last August. Smith has made strides to ease tensions and address retired players' concerns since he was elected in March.

Still, retired players are taking sides. One retiree said that the NFL, under Goodell, is contributing up to $9 million more toward retired player benefits than it previously did. As for the NFLPA,  He questioned whether the union was using this issue to gain support from retired players in labor talks.

Hall of Famer Mike Ditka said it's simply about doing what's right."The outcome of labor negotiations should not directly or indirectly impact the retirees pension and disabilities in 2010 and beyond. They have already suffered from the being on the short end of the stick," said Ditka, who is also the chairman of the Gridiron Greats Assistance Fund.

This is another issue that will be hard fought as well. If the "He said, They said" blame game is happening at this point, you can bet "It ain't over til it's over."

 4) Policy for player conduct violations/sanctions

On September 1, 2006, just days prior to the start of the 2006 NFL season, Roger Goodell and the National Football League Players Association decided that teams will be responsible for the conduct of their employees, and will be subject to discipline for any transgressions. A six-man player advisory committee was also created, to discuss conduct, discipline and other topics.

 "Pacman" Jones, Chris Henry, Tank Johnson and Michael Vick were all suspended. Many considered the suspensions on Jones and Henry to be too harsh, especially Jones's, which was enforced despite Jones having not been convicted of any crime. Additional criticism stemmed from the players' ability to keep their jobs while simply being fined or suspended. Criticism was also drawn at the commissioner's ability to punish the rest of the player's team and revoke draft picks. Goodell's actions are also leaving the league vulnerable to legal action from player's lawyers.

When "Spygate" occurred, Patriots head coach Bill Belichick and his staff were fined $500,000. The team was penalized a 1st round draft pick in 2008 as they qualified for the playoffs, but would have been penalized with a 2nd and 3rd round pick had they failed to make the playoffs. The move was heavily criticized as being a double standard. Although the videotaping is not considered to violate personal conduct rules, NFL players were critical of the Commissioner's move. When Goodell penalized Belichick, he determined that the use of the camera during the Patriots’ season-opening 38-14 win over the New York Jets had no impact on the game.

Here is The 2008 Personal Conduct Policy

5) Extending the season/shortening preseason

This is merely an opportunity for the league to generate more money, increasing revenues out of the TV networks by adding meaningful games and reducing the number of preseason games. Clubs charge their fans regular-season prices to attend as part of their season-ticket deals anyways, shouldn't the fans be considered?

The only things that could derail an expansion of the NFL season to 17 or 18 games are problems with the players union or broadcast partners.The players may not wish to add 2 more weeks of wear and tear on their bodies. Then you wouldn't need much beyond injury reports to pick the champions at that point.

It looks like Roger Goodell expects the league to start expanding across the pond. The League plans to schedule some regular-season games in the U.K. in the next few years. The League is thinking of expanding, and that could put a franchise in London.

It’s the third year in a row the NFL is staging a regular-season game in London, and the league is now looking into playing at least two games a year in Britain. Along with London, Manchester and Glasgow, Scotland are being considered as possible expansion sites. however, there is no possibility of an International Super Bowl, this is, still American Football.

The league is considering expanding the regular season to 17 or 18 games, with a possibility for every team to play one game abroad. If the league wants more of the current franchises to travel internationally for games, the regular season should be extended so that teams can keep the same number of home games.

Goodell said he would prefer a potential London-based team was a completely new franchise, rather than moving one from an existing market. The league is also eyeing having a team in Los Angeles again, especially after California Gov. Arnold Schwarzenegger signed a bill this week allowing the construction of a 75,000-seat stadium that developers hope will lure an NFL team back to the Los Angeles area.

 6) Drug policy.

Recently, a federal appeals court in Minnesota unanimously ruled in favor of the NFL in the so-called "Star Caps" case, rejecting all of the challenges brought by the NFL Players Association, including unfounded claims of bias and failure to share information with players about diuretics. The Court of Appeals fully upheld the earlier rulings of a federal district court in favor of the league. Commissioner Goodell added, "because the Minnesota and New Orleans players committed the same violation and had their appeals resolved at the same time, I believe the appropriate step is to defer the suspensions while we pursue both our legal options
and continue discussions with the NFLPA."


The four players, along with former Saints running back Deuce McAllister, all fought their suspensions last season after they tested positive for the banned diuretic Bumetanide, which can be used to mask the presence steroids. The players argued that the league knew Bumetanide had been detected in the over-the-counter weight-loss supplement, StarCaps, but failed to notify players who were using it. Bumetanide was not a listed ingredient in the product.

The Commissioner also said he hoped the players union would begin working with the league to resolve the matter now that federal courts "have rejected the NFLPA's improper challenge to our collectively bargained program. We hope the union will join us in ensuring that these principles of fairness and uniformity are preserved," Goodell said. "The union's unfortunate refusal to do so thus far has created needless uncertainty for our program. This is an important issue not only for the NFL, but for all sports and everyone who cares about the integrity of sports competition."

NFL reminds players about drug-testing program

 7) The Commissioner's authority

*Issues 4 and 6 tie in to this point as well.

When the NFLPA begins talks with the NFL on a new collective bargaining agreement one of the topics of conversation will be the power of commissioner Roger Goodell to discipline players, union chief executive DeMaurice Smith told USA Today on July 28th.

Goodell has made his mark as commissioner of the NFL through his rigid discipline and enforcement of the leagues’ personal conduct policy. Despite his many rulings on punishment for players that have violated the personal conduct policy, the amount of authority wielded by Goodell has raised concerns amongst players and for that reason, the NFLPA wants to take a closer look at the amount of power the commissioner has.

"That's something that's very important to the players that we intend to raise," Smith said.  "It's long been a subject of negotiations," Goodell said. "But I believe I have been responsible with my authority. It's important to have somebody who can make the best decisions on behalf of the league and the game. I do that with a great deal of consideration of everyone involved in the league.

The Collective Bargaining Agreement in pdf form.


In Part 3, we will talk about the Escalation, Impact, and Consequences of an Uncapped year. I hope this fills your Bye week with knowledge.

This is a Fan-Created Comment on MileHighReport.com. The opinion here is not necessarily shared by the editorial staff of MHR

31 recs  |  Comment 26 comments

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Truly a masterfully written piece

I Love MHR and the abundance of knowledge we have here. We have guys like myself who are draftnicks, as well as guys who have CBA, Salary Cap, NFL Legal, Stats, and many other things that they bring to the table. KK you truly did an inspired job on this series thus far.

ANY CHANCE WE CAN BUMP THIS TO THE FRONT PAGE?

Well done sir I commend you!

Davis and Sharpe to the Hall!

"Teamwork divides the task and double the success."
- Unknown

by Jon Tollerud on Oct 23, 2009 7:04 PM MDT reply actions   0 recs

I'll be #2 then.

Phyllis? Phyllis? Are you there? I can't hear you anymore.

by pubkeeper on Oct 26, 2009 2:38 PM MDT up reply actions   0 recs

Fantastic, Kaptain!

A truly outstanding work, my friend! Previously, I never really understood the ramifications of the CBA. You have done a masterful job of bringing it all into focus. Look forward to your next missive.

Thank you and most definitely rec’d.

" Life is what happens while you're making other plans "

by hairybear on Oct 23, 2009 7:19 PM MDT reply actions   0 recs

This a great article.

Thank you for sharing this with us. This is a well put together piece and I cannot wait for the next installment. Reccommended!

by Papamag on Oct 23, 2009 7:55 PM MDT reply actions   0 recs

thanks & rec'd Kap'n, can't wait to see part 3

"The best defense is a good offense. Or is it the other way around." Wolverine
Pray for the best, prepare for the worst, and know you will come down somewhere between the two.
Livin' in La La Land and Lovin' It

by BShrout on Oct 23, 2009 8:09 PM MDT reply actions   0 recs

Thanks

I thought I would have to wait for a couple of more days. I saw it there and was the first thing I went to.

Just a point on the extention of the reg season to 18 games. It wouldn’t be to bad if they left the rosters larger than 53 for the first three or 4 games. It would still allow for the use of evaluating players while the games meant something to the overall record.

Just a thought anyway

by papasteven on Oct 23, 2009 8:46 PM MDT reply actions   0 recs

That is an interesting thought papasteven

I wonder if the powers that be would read this and take it into consideration. More players = more money.
Thanks everyone for the nice words. The next one will take a little longer to finish.

Character may be manifested in the great moments but it is made in the small ones -- Philip Brooks

by KaptainKirk on Oct 23, 2009 9:14 PM MDT up reply actions   0 recs

Again, the members at MHR are spoiled by posts like these.

You said wait for part 2 and I was expecting like 3 or 4 days for you to compile the information. This was posted a lot sooner than I thought and you didn’t compromise quality, at all. This was awesome.

Just a quick question. Would all of these points fall under the new CBA talks that are going on now or are some of these things available for later discussion? I find it hard to believe that a compromise could be reached for all of these items at the same time, especially since nothing has been set in stone about the season being longer. I realize that all of your talking points would be affected by the new CBA, but could they make a tentative CBA that covers most of the points and leave some of the points off and address them later?

The reason I ask that is because it is important this agreement gets settled soon so that there will not be a strike. If they make it so that everybody is at least satisfied, they can get this thing settled and then address the other points at a later time, such as the drug policy and the expansion of the season.

If Taylor Swift were to try and tackle me, I'd let her.

by kentuckybronco on Oct 23, 2009 9:14 PM MDT reply actions   0 recs

Well, I would expect

The revenue issues and the Free Agency issues would be tied together and be the most important. It seems that money matters control everything.

Character may be manifested in the great moments but it is made in the small ones -- Philip Brooks

by KaptainKirk on Oct 23, 2009 9:19 PM MDT reply actions   0 recs

All i want from a new CBA is a softer cap

allowing teams to keep their players easier

CentSports free 10 cents to bet with Better than Fantasy Football, pick'em!!
16-3 baby!!

by RiG on Oct 23, 2009 9:21 PM MDT reply actions   0 recs

Amazing series, so far.

MHR, truly, has a great group of contributors and members. Kudos on the series, Kirk. I cannot wait to read part III.

-------
"Newbie, if the next two words out of your mouth aren't 'See ya' then the third word will be 'Oh my god. My crotch. You've punched me in my crotch." - Dr. Percival Ulysses Cox

by smudgers on Oct 23, 2009 9:33 PM MDT reply actions   0 recs

The Navin R. Johnson reference just made me do a spit take

What a great article – masterfully peppered by The Jerk reference… Thank you for posting this, it has answered a lot of my questions.

by BroncoTalon on Oct 24, 2009 6:40 AM MDT reply actions   0 recs

all YOUR appreciation makes the work enjoyable.

Character may be manifested in the great moments but it is made in the small ones -- Philip Brooks

by KaptainKirk on Oct 24, 2009 8:18 AM MDT reply actions   0 recs

I can't believe it!

We have the most talented hard working writers on this site than on any of the others SBN sites. Great work Kirk and I loved the post and information. Rec’d sir!

by bfree2bronc on Oct 24, 2009 9:24 AM MDT reply actions   0 recs

Fantastic! Thanks for the read and knowledge bestowed upon me.

Verbose in style, dispersion of thought, procrastination in life.

The guy formerly known as ZAPPA

by Tim Lynch on Oct 24, 2009 9:57 AM MDT reply actions   0 recs

Kap, the profit deal....very cool reference....rec'd

Is it just me or does this pension-disability policy seem very weak? For a game that literally has been shown to shorten the lifespan on these athletes, I guess I have to agree with Mike Ditka on this one. No matter what happens with sharing piece and rookie contract, this needs to be improved.

Regarding the rookie contracts, it would seem that the Players Association is in a position where they can’t have their cake and eat it too. If the veteran players weren’t so adamantly with the Commissioner on rewarding play on the field, the NFLPA would be very much against reducing these contracts. But this is what happens when you have two competing interest inside of the NFLPA

Thanks again, Kap.

Smokey, my friend, you are entering a world of pain.

by TJ Johnson on Oct 24, 2009 1:26 PM MDT reply actions   0 recs

Yes, I think the Pension-Disability program is weak

and I don’t believe you could move “Iron Mike” from his position. He is known for his stubbornness. on the Rookie contracts, I think that because the Veterans outnumber the Rookies, and despite the fact that the players want to be well compensated, the Veterans must be tired of the new guys getting paid ridiculously more than they do. There needs to be a better curve.

Character may be manifested in the great moments but it is made in the small ones -- Philip Brooks

by KaptainKirk on Oct 24, 2009 3:42 PM MDT up reply actions   0 recs

Nice piece of work Kaptain..

I’m still chewing on the disabiltiy-pension piece. I know there are now great studies on the effects of head/brain injuries. Those results show those affected should certainly be compensated in some form. But, is there sufficient evidence to show that playing the game of football actually shortens one’s lifespan……..if so is it significantly shorter than the average Americans lifespan? If it does how do you determine compensation for it? I’m sure these are some of the issues the owners and players have differing opinions on. It will be interesting to see how this turns out.

by bchiper on Oct 26, 2009 9:00 AM MDT reply actions   0 recs

Those are very good questions bchiper.

I will see what I can find out.

Character may be manifested in the great moments but it is made in the small ones -- Philip Brooks

by KaptainKirk on Oct 26, 2009 9:33 AM MDT up reply actions   0 recs

Thanks!

Great post. I really like this series. Makes you wonder how everything gets decided. I definitely think that rookie’s salaries should be restricted with options in the 2nd, 3rd and 4th years for restructuring the contract based on performance.

What about all contracts being performance based? Or would this cause coaches and owners to restrict playing time or divide up playing time more? Would players not go for contracts like that?

Another question I have. What constitutes a retired player? Is there a certain amount of playing time? Is their pension based on playing time, years in the league, performance, or something else?

Again, great post.

GO BRONCOS!!!

by go4broncos on Oct 26, 2009 12:35 PM MDT reply actions   0 recs

I can see more posts are coming out of this

Thanks for the challenges. I will do my best to answer your questions.

Character may be manifested in the great moments but it is made in the small ones -- Philip Brooks

by KaptainKirk on Oct 26, 2009 3:03 PM MDT up reply actions   0 recs

go4broncos

What about all contracts being performance based? Or would this cause coaches and owners to restrict playing time or divide up playing time more? Would players not go for contracts like that?

These are good questions. I don’t think the Players would go for a system like that. For one thing, I think it would violate Labor Laws. When contracts are being drawn up, they must also be submitted to the league for approval. There is a Standard NFL Player Contract outlined in the CBA and the league would investigate any new deviations or wrinkles per se.
I could see a Coach or Owner restricting player time to make the player unable to meet certain performance bonuses. But it would be an act of cruelty or ego.
   In baseball, Bill Veeck, the owner of the Chicago White Sox in the 1900’s, was notorious for being a miser. He would have his manager “rest” his better starting pitchers down the stretch to save $10,000 in bonus money for the number of starts the pitcher had.
   Of course that was then and this is now, and people have learned from past history. There certainly are a few Owners that would fit this stereotype,(Mike Brown and the Malcom Glazer come to mind), but I would say that winning the Lombardi trophy would be more important to them than a few $100K in bonus money. I mean, they are Multimillion Dollar enterprises.

Character may be manifested in the great moments but it is made in the small ones -- Philip Brooks

by KaptainKirk on Oct 26, 2009 3:25 PM MDT reply actions   0 recs

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