Shop for Detroit Lions gear at Fanatics.com

Judge Doty Gives NFLPA Much Needed Leverage

Judge David Doty ruled against the NFL today in what can only be viewed as the last glimmer of hope for getting a new CBA in place soon.  Doty ruled against the league being allowed to collect $4 billion in television revenue if/when there is a work stoppage.  That money would have provided a financial buffer for the owners to outlast the union in a financial war of attrition.

Even without the television money, many owners have the deep pockets to withstand a prolonged work stoppage.  However, with owners like the Fords and Jerry Jones who built stadiums with minimal public funding recently, some owners have significant amounts of debt too.

The owners were confident the players would blink first if it came to a stare down, but now the players and owners are on more level ground.  Deals don’t get done when one side has a distinct advantage, they get done when both sides have everything to gain by getting a deal done and everything to lose if one doesn’t.

If a deal does get done soon without a lockout or the union decertifying, millions of NFL fans will have to find a very big “Thank You” card to send to Judge David Doty.

For more on the NFL Labor situation check out The Busine$$ of Football by Andrew Brandt on www.nationalfootballpost.com, www.nfllabor.com, and www.nflplayers.com.


Enjoyed this post?
Subscribe to Lions Gab via RSS Feed or E-mail and receive daily news updates from us!

Submit to Digg  Stumble This Story  Share on Twitter  Post on Facebook  Post on MySpace  Add to del.icio.us  Bark It Up  Submit to Reddit  Fave on Technorati

2 Responses to “Judge Doty Gives NFLPA Much Needed Leverage”

  1. Renegade says:

    There appears to be differing views on the impact this decision will have. From SI.com:

    “… there is some debate whether it will have as much as an impact on leveling the playing field in the negotiations as the union hopes. A Standard & Poor’s report this week said based on findings connected to the state of teams’ stadium debt service, the NFL could go at least a year into a lockout without needing the $4 billion in revenue that the TV contracts provide for, and in the case of some stadiums, even a second year. League estimates had called for a lockout of at least one year in length before the owners would need to access the TV money …”

    http://sportsillustrated.cnn.com/2011/writers/don_banks/03/01/labor.situation/index.html?xid=si_nfl

  2. Renegade-

    I tend to be an optimist and here’s my take on it…

    Without an agreement some of the owners have the money to sit and wait it out and some don’t. But, the key is do they want to? The television money was going to be a buffer so the owners wouldn’t have to hit their cash reserves right away. Now the owners have to decide if they want to not only dip into their reserves but not make any money while doing so.

    The owners get tons of money from advertisors, the Madden video games, merchandise sales, etc. None of that revenue will come in, now without the TV money, they are looking at losing a lot more money than originally thought when they could be making money with an agreement in place.

    Yes they can still lock the players out and wait for them to cave, but it just got more expensive to do it. As long as 24 owners decide they don’t want to sit and wait, that’s all it takes to do a deal.

    Thanks for the excellent comment.

Leave a Reply