KFFL: NFL and Players aren't that far apart

[Nick]

NFL | Two sides not that far apart
Thu, 2 Mar 2006 18:43:10 -0800

Rick Gosselin, of the Dallas Morning News, reports the NFL owners and the NFLPA are not that far apart on the labor negotiations. Under the old CBA, the players received 64.5 percent of the designated gross revenue. The new CBA would give them a percentage of all football revenues. The designated gross revenue accounts for 87 percent of the NFL's gross revenues, generated primarily from network television contracts and ticket sales. Excluded from the financial pot was local revenue generated by teams from suites, parking, concessions, merchandising, signage and stadium naming-rights fees. The players wanted all football revenues included in the pot and then take a percentage of that gross. The owners maintain if the size of the pie increases, the player share of the pie should decrease. So instead of 64 percent of the designated gross, the owners offered 56.2 percent of the gross revenue, and that's where the stalemate currently exists. NFLPA executive director Gene Upshaw said he wants the player's share to be at least 60 percent.

[Goldenfleece]

I'd just like to point out, though, that each percentage point represents about $2.5 million. That's where all this talk about the cap going up $10 million comes from (4 * 2.5=10). The more they negotiate down, the lower the cap will be although any negotiation will mean it increases from where it is now. Also, while we're talking about 4% of the total revenues, we're talking about the players wanting roughly 10.5% more than what they're currently getting (10,000,000/95,000,000).