Awesome thread -- a very interesting topic.
Bloom, the article you posted was incredible, and delved deeper into the numbers, issues, and potential outcomes of the case -- thanks so much, phenomenal read.
It's not easy to be truly sympathetic to either side as a fan -- as someone who has to shell out hundreds of dollars for tickets and insane concession prices, I'm not bemoaning either party's potential loss of earnings, especially in what seems to be the most successful professional sport in terms of gross revenues (from the game, from apparel and licensing, etc.).
As to the players, yes, they put their bodies on the line, but pro sports salaries are way out of hand IMHO. I'm glad the players seemed to have gotten away with a good deal in '06 that netted them 59.6% of total revenue and solidifying profit sharing. This makes earnings more equitable in the most popular pro sport in North America. The issue that they are asking for the SAME earnings, as opposed to more, helps get my sympathy.
I like that they are bringing attention to a situation that most fans may not have a true grasp of, but the plan will backfire if they start to paint themselves as akin to Jurgis Rudkus and other 20th century meatpackers in the Chicago Stockyards.
On the owners side, it's easy to look at them as fat cats with billions to spend. I like to separate in my mind the money they've made from personal corporate endeavours and prefer to look at the operating income and expenditures they make from just their football team. Just because they are billionaires doesn't mean they use that wealth to run football teams, or that this personal wealth should be sacrificed to fund their NFL franchises. It's a blurry line, I know, as some owners do use their personal wealth to subsidize their teams, but I prefer to separate the fact that these guys are super-rich and just focus on the business involved in running their football clubs.
Not too many teams open their books, but being a public company, it looks like the
Packers did this summer:
"Packers officials said Wednesday that the team posted an operating profit of $9.8 million in the fiscal year that ended March 31, down from $20.1 million the previous year. The team has been in a slide since posting an operating profit of $34 million four years ago...
Packers president and CEO Mark Murphy attributed the decrease mostly to escalating player costs, putting the team squarely in the middle of a contentious debate between players and owners over a new collective bargaining agreement...
Taking into account investment losses that were less severe in 2009-2010 than the previous fiscal year, the team reported net income of $5.2 million, up from $4 million. The team said player costs have increased 11.8 percent annually over the past four seasons, while revenue went up just 5.5 percent annually during the same timeframe."
Margins are still good in the NFL, compared to, say grocery retail, but I wonder if this trend is true across all NFL franchises. Also wonder what other revenue isn't accounted for here (franchise licensing, money from TV contracts, etc.).
I think it's safe to say that in this area, some owners are better off than others -- Jerry Jones, for example, levered massive amounts of debt for the new stadium, while other stadiums (like the Cards') are run with relatively little expenditure by the teams. Taxpayers just aren't funding new stadiums anymore, and looking forward, a lot of this expenditure and risk will fall to the owners.
Bottom line, both parties are facing some risk -- and both parties have it pretty damned good in an economy that still hasn't righted fully. Like any standoff, I'm hoping this results in a way that keeps players salaries relatively stable (can't put the cat back in the bag on that one) and providing some risk tolerance for owners facing escalating costs and investment need.
As long as the fan doesn't contiunally get screwed....