As NFL Talks Collapse, Players Disband Union
Fight Headed to Courts as Two Sides Remain Far Apart
By MATTHEW FUTTERMAN
The National Football League descended Friday into turmoil as negotiations between owners and players broke off, setting up a potentially lengthy court battle that could have serious consequences for both the league and the sports business in general.
After spending seven-plus hours negotiating in Washington, D.C., in a 17th day of mediation, leaders of the NFL and the players union said late Friday afternoon that talks had stalled and blamed the other side for the meltdown.
Shortly thereafter the union filed paperwork to decertify and ten players, including stars Tom Brady and Peyton Manning, filed an antitrust lawsuit against the league. The suit seeks to prevent the owners from locking out the players. Owners said Friday evening they hadn't yet decided whether to lock out the players.
"Significant differences remain," said DeMaurice Smith, the union's executive director.
"We worked hard," said NFL Commissioner Roger Goodell, who dismissed the players' litigation. "Ultimately this is going to be negotiated."
The onset of litigation sends a business that has long prided itself on stability into a rare period of uncertainty at a time of record popularity and revenues.
The logjam leaves up in the air the future of the NFL, a $9.3 billion-a-year juggernaut. A work stoppage would cost both sides hundreds of millions of dollars and could cause the cancellation of games later this year for the first time since 1987.
Decertifying as a union allows the players to sue the NFL on antitrust grounds. Such litigation is not allowed during collective bargaining.
The players' suit was filed in Minnesota before U.S. District Judge David Doty, who presides over the legal issues between the union representing 1,700 players and the 32 team owners.
For the union, heading to court moves the disagreement to what has
been a friendly venue. After a lengthy lawsuit two decades ago, Judge Doty granted the players free agency. That ruling ultimately led to the current collective bargaining agreement and nearly two decades of labor peace. The players have won more victories in Judge Doty's courtroom than they have lost.
John Mara, co-owner of the New York Giants, said going to court was the union's strategy all along. "The union's position on core economic issues has not changed one iota," Mr. Mara said. "Their objective was to go to litigation."
However, the strategy isn't without risks. Litigation could lead to a lengthy work stoppage. If that happens, the players will have to do something they have never done before?hold firm and endure more than just a few weeks of missed paychecks.
Sports labor veterans say that will be the ultimate test for the union and its leader Mr. Smith, who has been on the job less than two years and has no previous experience in labor fights.
NFL players are different than other professional athletes because their careers are decidedly shorter, just 3.5 years on average. Missing a season, or even half a season, means giving up a significant portion of the amount of money they will earn.
What became clear late Friday is that the two sides are far apart not only in their proposals but in their interpretation of the proposals.
Jeff Pash, the league's lead negotiator, said owners had offered to keep player pay at 2009 levels and raise it by $20 million per club over the next four years. The NFL season would remain at 16 games for the next two years, but then could expand to 18 games. Off season and pre-season workouts would be cut. Retirement and health care benefits would improve and contracts could be guaranteed beyond one year.
Jim Quinn, a lead negotiator for the union, said the owners' proposal would have rolled back player pay to 2007 levels and amounted to a giveback of up to $8 billion over the course of the proposed 10-year deal. In addition, he said a flat salary cap would be imposed at $130 million, as the league would move away from basing player compensation on the percentage of revenues.
Write to Matthew Futterman at matthew.futterman@wsj.com
Fight Headed to Courts as Two Sides Remain Far Apart
By MATTHEW FUTTERMAN
The National Football League descended Friday into turmoil as negotiations between owners and players broke off, setting up a potentially lengthy court battle that could have serious consequences for both the league and the sports business in general.
After spending seven-plus hours negotiating in Washington, D.C., in a 17th day of mediation, leaders of the NFL and the players union said late Friday afternoon that talks had stalled and blamed the other side for the meltdown.
Shortly thereafter the union filed paperwork to decertify and ten players, including stars Tom Brady and Peyton Manning, filed an antitrust lawsuit against the league. The suit seeks to prevent the owners from locking out the players. Owners said Friday evening they hadn't yet decided whether to lock out the players.
"Significant differences remain," said DeMaurice Smith, the union's executive director.
"We worked hard," said NFL Commissioner Roger Goodell, who dismissed the players' litigation. "Ultimately this is going to be negotiated."
The onset of litigation sends a business that has long prided itself on stability into a rare period of uncertainty at a time of record popularity and revenues.
The logjam leaves up in the air the future of the NFL, a $9.3 billion-a-year juggernaut. A work stoppage would cost both sides hundreds of millions of dollars and could cause the cancellation of games later this year for the first time since 1987.
Decertifying as a union allows the players to sue the NFL on antitrust grounds. Such litigation is not allowed during collective bargaining.
The players' suit was filed in Minnesota before U.S. District Judge David Doty, who presides over the legal issues between the union representing 1,700 players and the 32 team owners.
For the union, heading to court moves the disagreement to what has
been a friendly venue. After a lengthy lawsuit two decades ago, Judge Doty granted the players free agency. That ruling ultimately led to the current collective bargaining agreement and nearly two decades of labor peace. The players have won more victories in Judge Doty's courtroom than they have lost.
John Mara, co-owner of the New York Giants, said going to court was the union's strategy all along. "The union's position on core economic issues has not changed one iota," Mr. Mara said. "Their objective was to go to litigation."
However, the strategy isn't without risks. Litigation could lead to a lengthy work stoppage. If that happens, the players will have to do something they have never done before?hold firm and endure more than just a few weeks of missed paychecks.
Sports labor veterans say that will be the ultimate test for the union and its leader Mr. Smith, who has been on the job less than two years and has no previous experience in labor fights.
NFL players are different than other professional athletes because their careers are decidedly shorter, just 3.5 years on average. Missing a season, or even half a season, means giving up a significant portion of the amount of money they will earn.
What became clear late Friday is that the two sides are far apart not only in their proposals but in their interpretation of the proposals.
Jeff Pash, the league's lead negotiator, said owners had offered to keep player pay at 2009 levels and raise it by $20 million per club over the next four years. The NFL season would remain at 16 games for the next two years, but then could expand to 18 games. Off season and pre-season workouts would be cut. Retirement and health care benefits would improve and contracts could be guaranteed beyond one year.
Jim Quinn, a lead negotiator for the union, said the owners' proposal would have rolled back player pay to 2007 levels and amounted to a giveback of up to $8 billion over the course of the proposed 10-year deal. In addition, he said a flat salary cap would be imposed at $130 million, as the league would move away from basing player compensation on the percentage of revenues.
Write to Matthew Futterman at matthew.futterman@wsj.com
lease carry on...this is getting funnier by the minute.