May 20, 2008
ATLANTA -- The NFL officially notified its players union on Tuesday that it will opt out of the current collective bargaining agreement, which could lead to a season without a salary cap in 2010 and a possible lockout in 2011.
Owners voted unanimously Tuesday morning to opt out of the deal, which was extended in March 2006. The NFL had until November to opt out, but decided to do it early instead of waiting for the deadline.
The league, however, emphasized that it will keep negotiating with the NFL Players Association and said games will be played "without threat of interruption for at least the next three seasons."
"We have guaranteed three more years of NFL football," commissioner Roger Goodell said after the owners used the opt-out clause built into the agreement signed more than two years ago.
"We are not in dire straits. We've never said that. But the agreement isn't working, and we're looking to get a more fair and equitable deal.".......
*******
NFLPA executive director Gene Upshaw had been anticipating the early termination of the agreement. He met with owners two weeks ago, and from that meeting he asked for audited financial reports from owners to document their economic problems.
Roger [Goodell] e-mailed me this morning [and] told me they had a unanimous agreement to terminate the deal. My response back to him? 'What a surprise.'
-- NFLPA president Gene Upshaw..........
*******
Upshaw said Goodell's e-mail listed three reasons for the early termination
:
high labor costs, problems with the rookie pool and the league's inability, through the interpretation of the courts, to recoup bonuses of players who subsequently breach their contract or refuse to perform.
The highest-profile example of the latter was a court decision allowing Atlanta Falcons quarterback Michael Vick to keep $16.5 million in bonus money, despite pleading guilty to federal dogfighting charges and being sentenced to 23 months in federal prison.
According to the NFL, clubs are obligated by the collective bargaining agreement to spend almost $4.5 billion on player costs in 2008. Players received around 60 percent of league revenues. Growing costs of stadium construction and operations also figured into Tuesday's decision.
The owners also want a change in the system to distribute the money more to veterans than to unproven rookies. Their argument is based on a disparity in salaries that leaves them spending far more on unproven rookies than on dependable veterans.
"The current labor agreement does not adequately recognize the cost of generating the revenues of which the players receive the largest shares; nor does the agreement recognize that those costs have increased substantially -- and at an ever increasing rate -- in recent years during a difficult economic climate in our country," the NFL said.........
******
NFLPA outside counsel Jeffrey Kessler told The Wall Street Journal prior to Tuesday's announcement that if the owners were to opt out,
the union "plans to ask for a greater share of revenues."
Kessler added that
"Every deal we've gotten with them, we've received another increase.".............
********
Upshaw added: "March of 2010 -- that's what we see as the realistic deadline.
I'm not going to sell the players on a cap again. Once we go through the cap, why should we agree to it again?"
http://sports.espn.go.com/nfl/news/story?id=3404596