The NFL, NFLPA, and an 18 game season.

nfl

“We’re ready for round 5 in the Goodall vs. Smith fight.”

While almost every NFL analysts was projecting a massive spending spree by the league in an uncapped year, nearly 2 years ago I told you that the NFLPA would be crying for the reinstatement of the salary cap floor because teams would use the uncapped year to dump expensive players and save money. That is exactly what happened.

More than a year ago on this site, I proposed a solution to the Collective Bargaining Agreement (CBA) that involved the 18 game season. The proposal was that the current players would get paid 18/16ths of their current contracts which would increase their gross by 12.5%. It should allow the NFLPA and NFLPA Exec Dir DeMaurice Smith to give back 8% of the player‘s cut of the total income from around 60% down to around 52%. If that proposal included an increase in the rosters from 53 to 60 and a rookie salary cap (to cut the amount of the pie that went to newbies and increase the pool available for the Vets) with the reinstatement of the NFL Salary cap, I believed that the NFLPA would accept it in … Read more at FryingPanSports

February 28th a giant date for the NFL.

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February 28th a giant date for the NFL.

By Bill Smith

In one of his first public statements, the newly elected Executive Director of the NFL Players Association (NFLPA) DeMorris Smith gave hope to millions of NFL fans. Smith said that he wanted to get started on negotiations for a new collective bargaining agreement (CBA) as soon as possible. While no one should hold his breath, there is a chance that the NFLPA and the owners can come up with a system that is going to acceptable to everyone involved.

February 28th is a key date in both 2010 and 2011. If the two sides can come to agreement and the players ratify it before 2/28/10, the uncapped year could be avoided. There is enough money for everybody. The cap for 2009 was originally estimated to be around 105 million, due to the TV contracts and other increases in revenue, the new cap is now over 116 million per team. That also raises the minimum salary to nearly 99.5 million which is the amount every NFL team must spend on salaries and player bonuses.

There are a number of poison pills placed in the last year … Read more at FryingPanSports

Smith's election as Executive Director of the NFLPA is great news for NFL fans.

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Smith’s election as Executive Director of the NFLPA is great news for NFL fans.

By Bill Smith

The NFL Players Association announced that attorney DeMorris Smith had been elected Executive Director unanimously by the team Player Reps. This is very good news for all NFL fans. It seems that the Reps have selected a moderate in Smith over the extreme positions of the other leading candidates.

Troy Vincent and Trace Armstrong were the best known candidates to fill the very large shoes of Gene Upshaw. Both of them were campaigning on a platform of a very hard line position against the NFL. Both had reportedly promised the players that they were the candidate that could finally bring guaranteed contracts to the NFL players. That would create a long and ugly strike/lockout that could cost the NFL several seasons. If the owners folded first, it would have created a league that would make Major League Baseball look organized.

While Smith’s positions on league issues are widely unknown, he has not made any overt public statements about what concessions he would demand from the league.

The NFLPA website says the following about Smith:

Smith, 45, is a trial lawyer and Read more at FryingPanSports

TO: Owners of the NFL and NBA This is not the time to strike or lockout!

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TO: Owners of the NFL and NBA

This is not the time to strike or lockout!

By Bill Smith

There is a famous saying that those that fail to learn from history are doomed to repeat it. That is not correct in all cases. In the case of the NFL and the NBA that face expiration of player master contracts in the next couple of years, let me restate it.

“Those that fail to learn from history are just doomed!” Smith, 2009

Both the leagues must learn from the examples of the NHL and MLB how devastating strikes or lockouts can be to their survival.

The case of MLB in 1994

In 1993, MLB had a total attendance of 70,257,938 a 26 percent increase over 92 and the best in league history. In the 5 years from 83-88 the league had averaged an increase of 3.3 percent per year. From 89-93 the league enjoyed an average increase of 5.5 percent per year. Teams like Montreal that had struggled for years were starting to show improvement. The game seemed fine but according to both the players association and the owners the economics were not.

The owners had forced then … Read more at FryingPanSports

The NBA has to “bail out” 15 teams.

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The NBA has to “bail out” 15 teams.

By Bill Smith

The Sports Business Journal (SBJ) reported that a private placement deal to borrow 175 million dollars was arranged for the N.B.A. by JPMorgan Chase and Bank of America. The charged interest rates are reported to be as high at 8.27 percent. The influx of cash will augment the 1.7 billion dollar league-wide credit facility that uses the NBA’s media contracts as collateral to secure loans for the clubs.

The money is necessary to provide cash to 15 NBA teams to cover payroll and other expenses. Those teams, unnamed by the league, have struggled with salaries, capital improvements, and to cover losses sustained over the last few years.

“In this economic environment, it’s tremendous that the league can place such a facility,” Alex Martins, chief operating officer of the Orlando Magic told the SBJ, which plans to borrow from the new debt. “It certainly helps us bridge the time period between now and when we move into our new events center in 2010. We’ve been operating at a $15 [million] to $20 million [annual] loss over the past half-dozen years, so it helps us” Martins told the SBJ.… Read more at FryingPanSports