Two economic issues facing the NFL today
Recently in the news were two different economic issues that the NFL is facing. One is more of an issue among the players while the second issue is a direct attack on the fans' loyalty to their team.
ROOKIE SALARIES
The contracts that rookies are signing continues to be a growing problem. Take this year for example. Jake Long's 5 year, $57.5 million ($30 million guaranteed) makes him the league's highest paid offensive lineman. Matt Ryan's deal of $72 million of 6 years ($34.5 million guaranteed) represents an increase over JaMarcus Russell's contract last year despite the fact that Russell went #1 overall and Ryan was picked 3rd. And Darren McFadden's deal that includes $26 million in guaranteed money represents a 40% increase over the guaranteed money that 2007 4th overall pick Gaines Adams received.
At the rate we're going, it's not crazy to think that a rookie will sign a deal worth $100+ million within a couple of years from now. Clearly, something has to give.
Luckily, commissioner Roger Goodell also sees that as an issue that must be resolved. He says:
"[Jake Long] doesn't have to play a down in the NFL and he already has his money. Now, with the economics where they are, the consequences if you don't evaluate that player, you can lose a significant amount of money. And that money is not going to players that are performing. It's going to a player that never makes it in the NFL. And I think that's ridiculous."
And he's right. It is ridiculous. The problem here, though, is that the Players' Association would also have to support any kind of rookie pay structure if that's the route the NFL wants to go. And even though there are whispers that the NFLPA might actually not be totally against this idea, Gene Upshaw, the voice of the Players' Association, is not likely to give in to the demands of the owners. After all, this next CBA will likely be his last as the head of the PA and he's not going to want this to be his legacy.
Therefore, this is going to be something to keep a close eye on as we inch closer towards a labor dispute following the 2010 season, unless of course a new CBA can be reached.
And for those that wondering what a rookie pay scale would be like, look no further than the NBA. Here's a chart that lays out the NBA rookie pay scale. As you can see, it's a nice, neat way to handle the rookie contracts. It would basically eliminate any potential rookie hold-outs and seems like a fair way to compensate unproven players who haven't earned anything at the professional level. After all, can anyone name me a job where, right out of college, you earn more than most coworkers? Didn't think so.
PERSONAL SEAT LICENSES
Ah yes, the dreaded "personal seat license," or PSL. For those that don't know what a PSL is, you're lucky. It means you, as a fan, haven't had to pay one. In a nutshell, it's a payment that a season ticket holder must pay for the right to purchase their season tickets, which generally occurs when new stadiums are being built. It's a revenue generator to help pay for the new facility. But it's a total crock to those fans who have been long-time season ticket holders.
The latest case of this is with the New York Giants. Their new stadium in the Meadowlands is scheduled to open in 2010. And to help pay for it, they are forcing their season ticket holders to pay PSLs, meaning that, depending on where their tickets are, they must pay anywhere between $1,000 and $20,000 per seat just for the right to purchase their season tickets - tickets that may have been in their family for decades. And this is happening despite the fact that they are splitting the costs of the new stadium with the Jets, who will also be playing at this stadium.
It goes without saying that fans are, of course, outraged. And they should be. This idea of PSLs is just ridiculous. Think about this: what about the fan who doesn't have too much money, works hard, and his one simple pleasure in life (his pride and joy) are the 6 season tickets that he has in the lower level of Giants Stadium around the 45 yard line? This is the guy who might not have a big house or anything, but likes taking his friends and family to see the Giants each week from very good seats. Say his seats are in the $20,000 range of PSLs. This guy will now have to pay a lump sum fee of $120,000 just for the right to buy his season tickets. Odds are that "this guy" won't be able to come up with that kind of cash. Instead, he'll likely have to give up these tickets.
The problem here? The Giants could care less. Because they know that there are thousands of more fans on the season ticket waiting list who would do anything to finally get their hands on some season tickets.
So, unfortunately for Giants fans (and likely Jets fans, though they haven't announced it yet), they will be forced to bow down to the power of the NFL and dish out the cash needed to pay for their PSL if they want to remain season ticket holders. And perhaps the lesson learned here is that NFL fans are insanely loyal - perhaps too loyal. Truth is, though, that the NFL knows this and will always use it to their benefit, no matter how many fans get stepped on in the process.
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All Pro Sports Owners..
..seem to do this kind of sh!t. Let’s see, this guy is a multi-billionaire, owns the team, makes money from the team, and basically lives out every sports fan dream every day of their lives, yet they can’t shell out money to build a stadium with sh!t that real fans don’t care about? Like arcades, waterparks, VIP lounges, whatever. Build a big circle with a field in the middle and hundreds of thousands of seats as close as possible. You’re RICH! Why does the poor bastard making $50,000 a year have to pay you half of that to sit in the massively useless stadium you made him pay to build anyway?? I hate the way it’s done, and it’s all symbolized in a nutshell in the Seattle vs The Sonics case going on in the NBA.
It’s a joke. And something needs to happen to make these billionaires more accountable for the money put into the team. It’s ridiculous that fans pay to build the stadium, then pay extra to reserve tickets, then pay more than usual when the ticket price goes up. Where does the billionaire’s money kick in? It doesn’t. God forbid the guy has to downgrade to a Gulfstream IV jet and look like such a fool to all his buddies flying G V’s.
Sorry, that’s my rant. Go Rookie Contract’s
http://miamiheattimes.blogspot.com/ A blog dedicated to the 2006 NBA Champs, The Miami Heat
by Little Nicky 21 on Jul 2, 2008 12:49 AM EDT 0 recs
I just don’t understand how it went from being affordable to bring a family of 4 to a game with food and all that, to being outrageously expensive in a relatively short time? Even adjusted for inflation the profit they are making is ridiculous. maybes that rookie pay structure should, but won’t, contribute to reducing the cost of a seat and concessions.
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y not if im wrong who will remember
by qbinfin on Apr 27, 2008 3:27 PM PDT
by DolfinPhan on Jul 2, 2008 9:30 AM EDT 0 recs
The PSL's are a slap in the face of fans
Like the Maras cant pay for their own stadium? GTFO.
by Patssuck456 on Jul 2, 2008 9:37 AM EDT 0 recs
capitalism gone awry...
its everywhere tho, nothing is safe from the mighty corporate hierarchy, and it saddens me to no end… even the nfl network must be purchased… football used to be a blue collar game, but at this point blue collar workers havta pray for hilites on espn just to see how their team played, the all important 30 sec. reel is all they have coming…..i think its a sad day when the league only honors the ‘wealthy’ fans and its just one more sign of the rampant decay infiltrating the entire US of A … no offense to those w/ means, but was it the wealthy who stormed the beachfronts on D-Day?? i think the ‘avg american’ deserves more respect than all of this. ok im done lol gets down off of soapbox
by Krab on Jul 2, 2008 11:19 AM EDT 0 recs
Thats a way for them to get money
Lets me tell you somethean about most team owners,Is that they dont give 2 shi* about there team.What comes 1st to them is money and then more money.They think the fans of the teams are low down dirty people.The reasons owners buy teams is cuz they now its a good investment…...But what i dont understand why cant owner just leave they stadium the way they are just spend money on the team.Why are you gonna go and spend a million dolars on a stadium,And double the price of a ticket…..I would rather pay 2500 for a season ticket,Than have to spend 5000 dollars to watch the same team play in a nicer stadium….....So what owners need to understand ous loyal fans dont care how nice a stadium looks we just want to support our team and not go broke in the process….
by lionel on Jul 2, 2008 1:24 PM EDT 0 recs
I'm startin the revolution
bout time us regular people take back our game from these rich assholes
http://miamiheattimes.blogspot.com/ A blog dedicated to the 2006 NBA Champs, The Miami Heat
by Little Nicky 21 on Jul 4, 2008 12:49 AM EDT 0 recs
GREAT!!!
everybody is in the same page here!!
For once, i need to fly to Miami to see my Dolphins, an basically, i have to put it at the same range of a vacation, because of the expenses LOL. Anyway, i hear you guys and i’m 100% behind you.
Poor Marlins with there new stadium? LOL
I will see the Dolphins win a SUPER BOWL before i die(20 years and counting)
by Aleta on Jul 6, 2008 9:11 PM EDT 0 recs











