As you may know, the NFL is currently undergoing some adversity regarding the status of the 2011-2012 season. The 32 teams' owners and the NFLPA (the players) are at odds on a few different issues that, if left unsolved, will result in the expiration of the Collective Bargaining Agreement (CBA) and an eventual lockout. Listening to sports-talk radio and reading as many articles as I do, I have heard this exact thing dozens of times. Each time I found myself even more confused than the time before. Collective Bargaining Agreement? Lockout? It sounds pretty, but what does this all mean? Well, I did my best to sort of simplify the basics of these hour-long discussions between the owners and the players.
- A CBA is a contract between management and its employees. It lays out conditions of employment, like wages and benefits.
- A lockout occurs when the management and its employees can not agree to terms. The management then declines the employees entrance into the workplace until they give in.
The CBA in place right now went into action in 1993 and has been renewed multiple times since then. Upon renewal in 2010, the players agreed and the owners basically laughed at it.
Why the sudden change of heart? The NFL has gained enormous popularity since 1993, especially in the past few years, and is ultimately worth much more now than ever. Like virtually everything else in the world, it's all about the money.
The NFL is a $9 billion industry. Yes, that is a "b" in front of that "illion". That is $8,999,999,992 more than what I have in my pocket right now. From this $9 billion, the owners currently get $1 billion off the top and then, from the remaining $8 billion, 60% goes to the players and 40% to the owners. All money considered, this ends up being a 53%-47% split in favor of the players.
What the owners are currently pushing for is a $2 billion chunk off the top, leaving $7 billion left. The players will then receive 58% of that remaining $7 billion (opposed to the current 60%). This proposal results in a 55%-45% split of all money in favor of the owners.
This is a lot of money being discussed here and it is ultimately a lot of money being taken from the players, who do not currently have retirement benefits provided by the league. So it's no wonder why the players are resistant.
The players responded with a proposal of their own: get rid of the "off the top" chunk of money and split the $9 billion 50%-50%. The owners laughed at this proposal as well and that brings us to where we're at now.
The owners are also in favor of adding two games to the regular season schedule, making it an 18-game season. Why? Money. The NFL makes the majority of its revenue through games. They sell tickets, merchandise, and food & drinks, and they draw HUGE television ratings. However, this adds two more chances for players to be seriously injured and their salaries, under the current CBA, will not be adjusted to support the two added games.
If the owners and players fail to reach an agreement by Friday, the CBA will expire and a lockout will occur, possibly canceling part of, if not the entire, 2011-2012 season.
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