dfosterf
15 years ago
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Revenue sharing remains a key source of potential controversy
Posted by Mike Florio on March 21, 2010 7:45 PM ET
We've heard from multiple league insiders who agree with our assessment that the current unity among NFL owners is fleeting, and largely confined to one issue: Squeezing the players into taking less money.

As to the issue of owners sharing the money that their teams generate, the potential for discord remains. Indeed, four years ago we believed that, absent a comprehensive solution, the NFL possibly could split into two leagues -- one made up of teams willing to share every dollar and another composed of teams with an "every man for himself" mentality.

Supplemental revenue sharing, the redistribution of wealth from teams making the most to teams making the least, has turned out to be a Band-Aid at best. Meanwhile, the traditional notions of sharing have been challenged over the past decade.

A league source tells us that, for example, the traditional 60-40 split of ticket money between home team and road team doesn't apply universally. Per the source, the Cowboys have finagled an exception for club seat revenue, apparently to help defray the costs of the North Texas Football Cathedral. Other teams have worked out similar deals, many of which transactions have received little or no publicity.

Bottom line? If the NFL plans to maintain competitive balance via a salary cap and a salary floor based on total football revenues, any new agreement must account for the fact that a formula based on total revenues will increase the labor costs for low-revenue teams. Absent a long-term answer to this specific problem, the situation will continue to create controversy every time a labor deal is due to be renewed, and it will only get worse as the gap in the revenues continues to grow.

In the interim, the challenge for the NFL will be to keep that percolating problem tightly under wraps. For the NFLPA, the mission is clear -- find a way to force this core issue to the surface sooner rather than later.



Revenue sharing is what keeps the Pack competitive.

How's about throwing Jerry Jones and Dan Snyder out of the NFL?
They can both play with themselves, as far as I'm concerned.

I LIKE that idea.
Rockmolder
15 years ago
Thank you.

I was thinking the exact same thing when I read that. I'm getting more and moe annoyed by what Jones is trying to do, getting around revenue sharing, trying to get rid of the salary cap.

I really hope that no one will follow his lead. Getting the Dallas Yankees in the NFL will destroy the game.

And I know. He didn't go crazy spending money right now. I do think that, in the long haul, he'll make the Cowboys into the Yankees.
dfosterf
15 years ago
I bet that even the Cowboys fans would grow weary of playing the Redskins after about 15 weeks in a row, lol

Seriously though, when you think about it...The costs associated with those two teams far outstrip their value to the league as a whole, and if the idea ever gained traction to the point that either of them got a little nervous- well, the entire NFL would be better off if they kept their yaps and wallets closed.
Pack93z
15 years ago
Greed is at the root of all collapse in history... why would the NFL be any different?
"The oranges are dry; the apples are mealy; and the papayas... I don't know what's going on with the papayas!"
Stevetarded
15 years ago
I thought the Packers were one of the teams that had to pay into revenue sharing?
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all_about_da_packers
15 years ago

I thought the Packers were one of the teams that had to pay into revenue sharing?

"Stevetarded" wrote:




They are.... which leads me to be very confused as to why the Packers need revenue sharing to survive....

What stops any NFL team from being like the Yankees is that broadasting revenue is evenly split amongst all NFL teams, whereas in MLB it's solely dependent on what a team can get in its local market - hence Yankees get a lot more than, say, the Pirates.
The NFL: Where Greg Jennings Happens.
Pack93z
15 years ago

I thought the Packers were one of the teams that had to pay into revenue sharing?

"all_about_da_packers" wrote:




They are.... which leads me to be very confused as to why the Packers need revenue sharing to survive....

What stops any NFL team from being like the Yankees is that broadasting revenue is evenly split amongst all NFL teams, whereas in MLB it's solely dependent on what a team can get in its local market - hence Yankees get a lot more than, say, the Pirates.

"Stevetarded" wrote:



Which is exactly the problem, it will lead to competitive imbalance and will pull the overall league down. Currently, with the stadium redone our revenues are up... at the moment, probably isn't a huge deal, but that will last only so long.

What then.. selling more sod to redo Lambeau the next time? Water down the stock concept with more stock?

Sure we could go the route of the YES network here.. PACKTV is what you will have to subscribe to to get, fight with cable companies nationally to get it instituted into their packages, etc.

BTW, I believe the massive TV contract that the NFL signs prevents this from happening, which isn't the revenue stream that is being discussed.. it is the clubs revenue around ticket sales, merchandise and other local forms of revenue.

The beauty and honestly the success of the NFL is its competitive parity... start washing that away and it will become a violent version of baseball. They are both beautiful games, just MLB hasn't had to balls to level the playing field for all clubs.

Jerry Jones and his new temple provide a threat to the overall success of the NFL.. the sooner he is absent the better. Greedy SOB.

Does it suck having to fork cash over to say the Vikes.. sure it does right now.. but that more than likely won't stay a constant.. sooner or later the stadium issue will be resolved and their revenues may increase. Maybe some day they are forking cash out to other franchises.. maybe us.

It is a overgrown coop... a way to balance the revenue stream so that all parties make a profit and the overall league stays healthy.

Want to see what the NFL will become if they break that apart.. see the NBA.. almost all trades are to wash away contracts, many of them are aren't about equality in talent.. just salaries. The clubs that can take on the long term heavy payrolls gobble up the talent and deal in expiring contracts. Note the Dallas / Washington trade as the deadline.

That is not what I want for the NFL I love.. and it is not that teams are losing money. It is the greed of some, one in particular that build the second coming of Rome, that by the rules can't become the Yankees and corner the market.. and it bruises his precious little ego.

Greed has taken down many an empire.. trust me the NFL is an empire.. and it can fall to greed just like any other empire.

Will it mean instant doom for the NFL.. nope.. but we have a couple of posters here than compare the Packers to the 70's and 80's... IMO, lack of revenue sharing (BTW, we are not talking about TV contracts) will start to bring that fate to some of the weak right now.
"The oranges are dry; the apples are mealy; and the papayas... I don't know what's going on with the papayas!"
Zero2Cool
15 years ago
Okay, who's posting as Shawn? That was too well written and even I understood what he said. What have you done with our Shawn? :P



I do not mind giving money we earn to others. This year we scratch their back, maybe next year they scratch ours. And if that's what it takes to keep a competitive league, so be it.
UserPostedImage
bozz_2006
15 years ago
dfosterf, can you explain to me (a guy who doesn't have much knowledge of labor deals and revenue sharing) how revenue sharing is what keeps the Pack competitive? Are you saying that it benefits the Packers more than other teams (besides the Redskins and Cowboys) or do you mean that the Packers and most other teams rely on revenue sharing to stay competitive? So, my questions are
1) How does revenue sharing help the Packers?
2) What other teams need revenue sharing for the same reasons the Packers do?
UserPostedImage
Pack93z
15 years ago

Okay, who's posting as Shawn? That was too well written and even I understood what he said. What have you done with our Shawn? :P

"Zero2Cool" wrote:



Hmmm, you really don't read a lot of my posts do you.. lol. ;)

Bozz...

http://football.calsci.com/SalaryCap.html 

http://sports.espn.go.com/nfl/news/story?id=2781759 
"The oranges are dry; the apples are mealy; and the papayas... I don't know what's going on with the papayas!"
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