In a unanimous vote, all 32 NFL owners opted out of the league’s Collective Bargaining Agreement. The original agreement meant there would have been a cap until 2012, but now there might be an un-capped season in 2010 if a new deal cannot be reached.
What does this mean to fans and games on the field?
Regardless of whether a new agreement is reached, NFL football will be played without threat of interruption for at least the next three seasons. The 2008 and 2009 seasons will be played with a salary cap. If there is no new agreement before the 2010 season, the 2010 season will be played without a salary cap under rules that also limit the free agency rights of players. If not extended, the agreement would expire at the end of the 2010 league year.
What are the key issues?
The NFL states that clubs are obligated by the CBA to spend substantially more than half their revenues — about $4.5 billion this year — on player costs. There are also growing costs for stadium construction, operations and improvements. The NFL feels the current labor agreement does not adequately recognize the costs of generating the revenues of which the players receive the largest share, nor does the agreement recognize that those costs have increased substantially in recent years due to difficult economic times. Owners also have concerns about the inability to recoup bonuses paid to players who subsequently breach their contracts or refuse to perform, as well as the current system that allows some rookies to secure contracts paying them more than top proven veterans.
One thing the league has to work on is how much rookies make. It’s ridiculous that a rookie top 10 pick could essentially make more than a five-year veteran coming off a Pro Bowl appearance. I don’t like the idea of an un-capped NFL, but maybe this expected opt-out by the owners will drive both parties to figure out a better system. Then again, it could be a disaster that leads to a future lock out.
