How about #3: The players have the owners by the shorties. The owners have no choice but to meet fairly unreasonable salary demands because they MUST have a CBA in order to operate legally. They are willing and able to do this to some extent because the product is highly desireable and they have been able to pass this cost along to the consumer (ridiculous ticket prices, PSLs, $8 beers, etc. etc.), but there is a limit. At some point, the owners have to push back.
You've got the cart before the horse here Renesauz. Players salaries rise AFTER the NFL increases revenue. Not before. And those salaries are a relatively fixed percentage of that revenue that only rises in nominal terms with increased revenue.
I understand the mechanics. But not all costs are relative to income. The players used their leverage to obtain 50-some % of gross revenue as salary. Considering all of the other expenses and personel needed to put the product on the field, that's a very VERY high cost. If other costs rise by an amount disproportionate to revenue rises, where do the owners recoup? This is the problem with the CBA as a whole. The owners are locked into a player labor cost by % REGARDLESS of other expenses. While the logic of such a system is not in doubt, it is illogical to assume that such a % should always rise, or even stay the same...as it has in every deal up until now. The players are unwilling to go backwards at all, and while I don't blame them for that desire, I don't think it's entirely reasonable that employees should hold so much power over their employers that employers are no longer able to curb salary growth of their own accord in response to a changing economic climate. In this regard, these labor and trust laws unfairly punish the NFL, because any other business owners would have far more control over these types of costs.
What I'm seeing is that the NFL has determined that revenues are unlikely to see significant growth in the near future, while certain other expenses have not only risen, but are likely to continue to rise. Thus, profits will shrink, and some owners are already (alledgedly to be fair) seeing uncomfortably thin profit margins. The owners wish to curb the future growth of salaries (a reasonable goal for ANY BUSINESS) so as to allow any real increase in revenue to actually grow their profit margins (another reasonable goal for ANY business). Their projections right now indicate that the expired model grows salaries at a rate which outpaces profitable income...IE: Real profits will SHRINK if current projections for revenue growth and costs are accurate. This is why the owners opted out of the last CBA.
This illustrates why I think Unions now accomplish more harm than good. IN most CBA's, in any business, Unions typically hold out for MORE pay or benefits than they got in the previous agreement. They cite owner profits and accuse big business of corporate greed. They count on the common man relating to them since they ARE the common man. The problem is, the common man is every bit as greedy as the corporations. IN many cases, Unions are bankrupting their employers with their greed. American Auto manufacturers have operated on the verge of financial collapse for years because of labor costs. I find it insulting and ridiculous that UNions have generally get more out of every deal then the deal before, and that this is NORMAL.
What's going on in the NFL is going on all over the country as big businesses and even some local or state governments have had to push back, have had to take back some of those benfits or salaries in order to remain solvent. Some Unions work with their employers, others don't.
The NFLPA is a Union which
says it will work with it's employer, but clearly (at least to me) is every bit as guilty of greed as it accuses the company (NFL) it works for of being. Some of the rising costs the NFL claims are obvious, and the Union doesn't care. The only way the recently expired CBA works is if revenue continues to rise at a fantastic rate, yet any knucklehead can see that in this economy those kinds of rises are unlikely.