FanPost

Owner make what?



I've seen a lot of posts stating that the owners seem to be getting the shaft in the newly owner approved CBA and that the players need to take this good deal.  I want to economically examine exactly what the owners are gaining in this deal.

 

 

Under the last CBA the owners took $1billion off the top and split the remainder with the players 59.5-41.5% players to owners.  In 2006 the NFL raked in $5.6billion; under the agreement for that year the owners received the $1billlion off the top and $1.86billion totaling $2.86.  The players received $2.73billion which gave the owners 50.5% of revenue.  However, as the NFL gained momentum over the course of the next few years this formula began to shift to the players.  In 2010 the NFL recorded $9.3billion in revenue under the old CBA the owners would have taken $4.36billion total to the players $4.93billion giving the players roughly 53% of total revenues.  We can see now why Big Cat was a tad angry over the old CBA; the NFL grew by 66% in four years yet the owners earned 3% less of the total revenue then in 2006.

 

Under the terms of the yet to be signed CBA the owners will take up to 53% of revenue. If the 2011 tentative CBA were applied to 2010 revenues the owners would receive $4.92billion which was the player's share. This is a major concession from the players who get a lot of benefits in this CBA for allowing the owners increased profits.  The owners, however, will realize every penny of additional profit that comes through the league which is what they wanted in the first place. Last year this would have been nearly $600million dollars split evenly by the ownership comes to a cool $18.75million. 

 

It is paramount to understand that the owners and players have different needs at the negotiating table.  The players are looking out for each person that plays the game; that person will have needs now and in 50 years.  The owners on the other hand have concern only for the franchise. Franchises are measured by the amount of profit they create; this mentality isn't greed so much as the nature of all business.  From this perspective the owners win because they have created a system that rewards them for all growth.  The players give up a system that favors them as the revenue margin increases in exchange for what amounts to create comforts during practice and better benefits.  


 

 

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