2011 Nfl Lockout

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The 2011 NFL Lockout: NFL Owners vs. NFL Players

Negotiation Skills

The 2011 NFL Lockout: NFL Owners vs. NFL Players

TABLE OF CONTENTS

Introduction ………………………………………………………………………. 3 NFL Owners Stance ……………………………………………………………… 4 NFL Players Stance ………………………………………………………………. 5 The Lockout Begins ………………………………………………………………. 6 The Stalled Negotiations ………………………………………………………….. 6 Getting Down to Business ………………………………………………………… 7 The Lockout Ramifications ………………………………………………………. 8 An Agreement is Reached ………………………………………………………… 10 Terms of the new CBA …………………………………………………………….. 11 Summary ……………………………………………………………………………. 14 Conclusion ………………………………………………………………………… 14

INTRODUCTION
Over the past twenty years, the National Football League (NFL) has seen its product grow and blossom into America’s premier fan viewing sport. The NFL currently has 31 franchises in cities located throughout the United States. Some teams are located in major markets like New York and Chicago, while some teams are have put down their roots in smaller markets like Kansas City and Indianapolis. No matter how big the market or how poor the teams performance is on the field, one thing is constant, the NFL, the NFL owner, and the NFL players are making millions upon millions of dollars playing a game. The NFL is a money making machine. The kind we all wish we could operate or own. Every week the NFL rakes in the profits. Wherever there is money to be made, rest assured there is greed rearing its ugly little head. This project focuses on the 2011 NFL Lockout and the negotiations that eventually led to a new collective bargaining agreement (CBA) that was signed in July of 2011. (ESPN website, n.d.) On March 11, 2011 the current CBA expired and without a new agreement in place, the NFL owners officially locked out the players. Players were not allowed to use team facilities or be anywhere on team owned grounds. This did not come as a shock to the players for they were well aware of the pending expiration of the old CBA. The NFL Players Association (NFLPA) and the NFL owners had signed an extension for the previous CBA in 2006 with an option for either the owners of the NFLPA to opt out of the extension after the 2008 season. The owners took the opportunity to opt out of the extension with a unanimous vote by the owners. At that time, the owners and players were aware that the current CBA would terminate on March 11, 2011 and that with no deal in place there would be no other option than a work stoppage. Due to neither side being willing to compromise or even negotiate a new deal before the expiration of the old CBA, the NFL experienced a long and ugly lockout that caused many to fear the worst from a fan and financial perspective, an entire lost NFL season. (ESPN website, n.d.)

NFL OWNERS STANCE
Each year in the NFL, the profits total nearly $9 billion, which has to be divided between the owners and the players. Before the money is divided, the owners’ automatically take an agreed upon $1 billion off the top which goes to cover miscellaneous expenses incurred while operating an NFL franchise. When the NFL owners signed the previous CBA in 2006 they agreed to pay the NFL players a 59.6 % share of the revenues after the $1 billion is paid to the owners. This payment to the players comes in the form of the salary cap. In 2008, the owners felt like the NFLPA was getting too big of a piece of the profit pied and they wanted out of the deal. The owners based their claim and decision off of inflation in our economy and higher utility costs incurred while operating their teams. (Oestmann, 2011) The owners have proposed that instead of the $1 billion that is taken off the top immediately, that they receive $2.4 billion off the top for their miscellaneous operating expenses. The owners still wish for the players to be compensated but they have decided that the profit pie needs to be a bit smaller...
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