NFL and NFLPA’s labor woes may not be over yet
TUESDAY, 02 AUGUST 2011 14:04
http://www.newjerseynewsroom.com/professional/nfl-and-nflpas-labor-woes-may-not-be-over-yet
BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE BUSINESS AND POLITICS OF SPORTS
The National Football League owners have a labor agreement with the present members of the reconstituted National Football League Players Association but it appears that the league still has problems with the players association's stance on not helping out former players with their medical needs years after their last game in the league. The league apparently informed Carl Eller's legal team on Friday that the-then decertified National Football League Players Association decided not to take a $500 million offer over ten-years to get retirees life football medical benefits and an uptick in pensions as part of the recently completed collective bargaining agreement.
Eller, the one time member of the Minnesota Vikings "Purple People Eaters" defensive line, has emerged as a key player in the NFL-NFLPA labor agreement. Eller and a number of former players inserted themselves into this year's collective bargaining talks because they felt the league and whatever the NFLPA called themselves in this round of negotiations had failed to provide adequate post football life care in terms of pensions and medical benefits to former players.
There are numerous stories about former National Football League players who cannot function on their own or are suffering from dehabilitating injuries that occurred on the football field but did not come out until they were long retired from the game. A new story has been making the rounds in retired players’ circles about a onetime offensive lineman who played in the American Football Conference.
"(The former player) has gone downhill fast," said his wife. "He’s now on the 88 plan. I can't keep up with him – even with full-time help. We do not need anything financially. YET. But we do need communication and support. I could never have imagined how hard this would be and I pride myself on being a strong cookie. We are living in Crazyland every day!
"Fortunately, (the player) is just as sweet as he has always been. But two of us chase him all day long. He has several self-inflicted wounds: eye, thumb, nose. Minor but of concern. He thinks he’s holding something in his hand all day – nothing there but his hand is clasped. It’s crazy. Even two of us cannot keep up. Last night, I went to take a shower and I forgot to lock the front door. Within 10 minutes he was outside with the TV remote in his hand along with 4 or 5 books (anything he could get his hands on) and in his bare feet walking down a long driveway to get into a neighbor’s mailbox! And Terry cannot go into an assisted living facility at this stage as he’s beyond that and needs round-the-clock supervision to keep him from hurting himself or getting into trouble."
There is another story going around about a one-time offensive lineman in the AFL and NFL who is also totally disabled and is suffering from the same head injuries as his friend, the late John Mackey who died less than a month ago.
That former player’s story seems all too familiar.
The "88 plan" came about after the league and the NLFPA seemed to be shamed into having to do something to help former players. The “88 Plan,” named after John Mackey's Baltimore Colts uniform number, came about after it was revealed that the Pro Football Hall of Famer and one time NFLPA president Mackey was suffering from frontotemporal dementia. The two sides signed off on the following the 2006 CBA singing. The "88 plan" provides up to $88,000 a year for nursing care or day care for ex-players with dementia or Alzheimer’s disease, or $50,000 for home care.
Not everyone can qualify for the "88 Plan" or other post career benefits. There is a panel made up of NFL management types and former players that rules on who gets money and treatment and who doesn't. It is a very complex issue that seems to have no solution.
The players association has always been about "Money Now". In 1982, NFLPA Executive Director Ed Garvey along with his then assistant, the former Oakland Raiders player, Gene Upshaw and the rest of the staff used the slogan "Money Now" to hammer their point across in that year's NFLPA strike. The NFLPA wanted the money in 1982 and didn't strive for any real post-career benefits. The Hall of Fame defensive back Herb Adderley is getting about $175 a month in pension. Wayne Hawkins, a long time offensive lineman in the American Football League, gets slightly more than $200 a month. To qualify for any kind of care, a player has to last three years.
The NFLPA, not the NFL owners, has failed to live up to a union/association's responsibility to get the best deal possible and that doesn't necessarily mean money now. In a rough world of pro football where exaggerated toughness commands respect there comes a price. The NFLPA has constantly ignored players once they go into the civilian world. The former players have blamed the NFL owners for their indifference but the NFL owners are not obligated to do anything for their former employees. They have been engaged in the collective bargaining process for more than five decades. The owners aren’t angels and in fact did not initially recognize any players association or union in the late 1950s.
The NFL ownership group, hardly a bastion of liberal and enlightened thinkers, understands that there is a need to collectively bargain with the players and has apparently offered mechanisms to take care of players who have suffered lifelong injuries related to the industry. The NFL may also face other legal suits. Seventy five former players including one time New York Giants running back and Super Bowl MVP O. J. Anderson are suing the league claiming that the NFL deliberately held back information that concussions had long term health effects.
The American public has been taking care of some players through Medicare and Social Security Insurance for years unknowingly. Players have turned to the government because they are uninsurable because of pre-existing injuries that they suffered on the field. It is not unknown how many players are on the Medicare or Social Security rolls long before their 65th birthdays because most of the severely injured players never come forth and go public about their National Football League or American Football League related injuries. There are few players still alive who played in the All American Football Conference between 1946 and 1949 who can discuss whether they had life impacting injuries from football. Other players who may have been saved by the American safety net include those who have played high school and college football, indoor football, minor league football and those who were in the World Football league, the United States Football League and the various incarnations of the World League of American Football which included NFL Europa.
It is an industry wide problem.
The former players who once were part of the NFLPA seem to have been betrayed by the leadership or were blinded by their agents or the "Money Now" thinking. The players found out that they are not only considered disposable commodities by their teams who tell them to play through injuries, both minor and severe, but by their agents and their association.
The NFL also stands for "Not For Long" in many cases.
The former players are fragmented which is a problem and there are often a good many agendas that are being put forth by people who are trying to rectify untenable situations. The NFLPA may have wanted to reach out to the former players in a public relations ploy and went as far as almost offering them a seat at the collective bargaining table. In the end, the NFL owners led by NFL Commissioner Roger Goodell and the decertified NFLPA led by Executive Director DeMaurice Smith came up with an agreement that allowed training camps to open a little late and persevered the 2011 season without the retirees having a seat.
There is a legacy fund to take care of former players in the new agreement although no one seems to know how it will work. Perhaps the league's insurance groups will take some of the severely injured players off of the Medicare and Social Security rolls and replace that with better health care and pension benefits. Perhaps is a big word though. This isn't silly stuff like "Spygate" where New England Patriots coach Bill Belichek was videotaping run throughs or the other inane stories that are manufactured throughout a football season about one team really hating another team. This is real life and the lawsuits that are being pushed might have be avoidable if the players had better advice.
Evan Weiner, the winner of the United States Sports Academy's 2010 Ronald Reagan Media Award, is an author, radio-TV commentator and speaker on "The Politics of Sports Business." His book, "The Business and Politics of Sports, Second Edition" is available at bickley.com, Barnes and Noble or amazonkindle.
Showing posts with label NFL lockout ends. Show all posts
Showing posts with label NFL lockout ends. Show all posts
Tuesday, August 2, 2011
Tuesday, July 26, 2011
NFL is back and so is the business of football
TUESDAY, 26 JULY 2011 16:41
http://www.newjerseynewsroom.com/professional/the-nfl-is-back-and-so-is-the-business-of-football
BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE BUSINESS AND POLITICS OF SPORTS
To the relief of a great many beers distributors, snack food vendors, per diem workers who are employed 10 days a year by NFL teams, fantasy football players, bookies, rather office pool organizers, casino operators in Nevada and those who cannot move from their couches for up to 12 hours at a time on Sunday because they are too busy watching football, the National Football League is back in business.
FOX's Rupert Murdoch, CBS' Sumner Redstone, General Electric's Jeffrey Immelt (NBC’s head prior to the Comcast takeover of the Peacock Network), The Walt Disney Company's Robert Iger and DirecTV executives don't have to explain to anyone including a federal judge in Minnesota why they were willing to underwrite the NFL owners lockout. Iger heads up Disney and one of Disney's companies is ESPN. That cable network would have put up money for the 2011 NFL season using subscribers’ money. Only about a tenth (and that is being generous) of ESPN subscribers watch football yet 100 percent pays and that is permissible thanks to the 1984 Cable TV legislation passed by Congress and signed into law by President Ronald Reagan. People who have no interest in the NFL would have helped support the owners lockout. That law allowed cable TV multiple systems operators to choose what networks they wanted on a basic expanded tier and sell them as one. The legislation probably saved ESPN, CNN, MTV and others from financial ruin.
The NFL owners lockout—which may have been prompted by some owners whose teams play in old facilities like New Jersey's Zygi Wilf's Minnesota Vikings who could not keep up with a salary floor—is over. It is unclear whether the new collective bargaining agreement will address that issue. With the end of the lockout, NFL owners can go back and demand new taxpayers assisted stadiums where needed. The NFL owners as part of the lockout ploy told the San Francisco 49ers ownership not to look for money to pay off the 49ers share of the costs a planned Santa Clara, California stadium because the league owners wanted the players to pay for part of the construction costs.
The players trade association, formerly known as the National Football League Players Association, never helped out broken down old players so it might have been a bit much to expect them to hand over money to owners to help build football facilities. The NFLPA didn't recognize in many cases that some of the retired players with very serious injuries that were sustained during their NFL careers ended up in government social safety nets long before their 65th birthdays such as Medicare and Social Security.
NFL owners and the NFLPA should have collectively bargained long term health care for players but that was not an important issue in the past for the NFLPA. The new CBA seems to have some provision to take care of the health of players but until the CBA is fully digested by all, including the retirees, it is unclear how much help those players may get.
The National Football League and by extension—the players—depends on government subsidies and handouts. The deal with the players is done and now it is time for the league to get new facilities in San Diego, Santa Clara, Oakland (the San Francisco Bay Area), Los Angeles, Minneapolis or Ramsey County, Minnesota and see what can be done with the Buffalo Bills franchise. Arthur Blank is seeking a new facility for his Atlanta Falcons franchise as 19 year old domed stadium that houses his team is quickly becoming antiquated and New York realtor Stephen Ross is stuck with a 24 year old, although updated, facility which is no longer suitable for a Super Bowl outside of Miami.
The mayor of Toronto, Rob Ford—who seems to fit in with the United States Tea Party movement in that he wants to slash services to the bone but not raise taxes for those who can afford a slight increase—may be open to finding public funding to build a National Football League state of the art facility in Canada's financial capital. Ford seems to be like a lot of politicians. Slash spending, cut public jobs and don't raise taxes on the very rich and if you can give the very rich tax breaks for sports facilities go for it. Political leaders in both parties in Minnesota are trying to build Wilf a taxpayers funded facility in some sort of public-private partnership. In Santa Clara, hundreds of millions of public dollars have been set aside for the 49ers planned facility. Louisiana is still giving New Orleans Saints owner Tom Benson cash handouts and New York is doing likewise for Buffalo's Ralph Wilson while cutting services. Florida politicians are seeking a way to help Ross and the NFL’s sad plight.
The 1986 changes in the tax code altered American sports. President Reagan's signature gave owners who played in taxpayers built facilities after 1986 an opportunity to get up to 92 cents on every dollar generated in the building with just as little as eight cents going to pay down the facility's debt. It was great news for owners and a massive expansion of American sports would ensue.
Since the changed occurred, the National Basketball Association has grown from 23 to 30 teams, Major League Baseball has added four teams and in 1990, Major League Baseball signed a new deal with minor league baseball operators which forced cities to renovate or build new minor league parks or risk losing the minor league team. The National Hockey League went from 21 to 30 teams and some franchises were relocated. The 28 team National Football league also expanded and ended up with 32 teams. Major League Soccer was formed and MLS owners are also at the public trough claiming their fair share of tax dollars for stadium construction.
The NFL expansion process started in 1991 and started a chain reaction of events that included creating four expansion teams (Carolina, Jacksonville, Cleveland and Hpuston) and the movement of the Anaheim-based Los Angeles Rams to St. Louis and Art Modell's Cleveland Browns to Baltimore. There was also the transfer of the Houston Oilers franchise to Nashville, Tennessee and Al Davis' Los Angeles Raiders to Oakland. The most eye opening franchise-government deal that evolved out of the 1991 expansion was the $186.5 million 2001 agreement between Louisiana and New Orleans Saints owner Tom Benson that assured Benson would keep his team in the Superdome even though he had an existing long term contract that bounded him to the building. Benson got $186.5 million from cash strapped Louisiana to stay in the city between 2002 and 2010.
In 1991, Baltimore, St. Louis, Memphis, Charlotte and Jacksonville decided to go after an NFL expansion franchise. The NFL never really expanded in the "modern" era (1956-present) because league owners like Chicago's George Halas, Pittsburgh's Art Rooney, and the Mara family's New York Giants had no inkling as to how to market and grow the NFL. Instead expansion was always a reaction to market pressures. When Lamar Hunt was unable to purchase the Chicago Cardinals or get an NFL expansion team in Dallas in 1959, he decided to start the American Football League. The NFL responded by expanding to Dallas and Minneapolis. In the mid-1960s, the NFL went into Atlanta to deny Hunt's league an opportunity to establish a team in that city. In 1966, the NFL granted New Orleans a franchise in exchange for Congressional approval of the AFL-NFL merger and in the 1970s, the NFL expanded to Seattle and Tampa to take potential markets out of circulation for the fledgling World Football League There was no outside pressure to expand in 1991 except there was money on the table and other owners could see what cities were willing to do to get an NFL team.
The NFL found out in a hurry that cities would be willing to pay a ransom for a team.
The league liked Charlotte and the possibility that a former player—Jerry Richardson—would own the franchise. Richardson didn't need much public money because the team was going to get ticket buyers to pay twice for seats and that would pay for the construction of the facility. Richardson's "personal seat licensing" scheme required ticket holders to buy a stadium seat over a set amount of years and then pay for a football game. NFL owners were impressed by the pricing mechanism and awarded Richardson a franchise but the NFL wanted two expansion teams and the 28 owners would split up $280 million with each owner getting a $10 million payment.
Boogie Weinglass and the author Tom Clancy pursued a Baltimore franchise. Weinglass presented a proposal that Maryland would build a stadium and the team would be well supported even though Robert Irsay moved out of the city in 1984 and NFL Commissioner Paul Tagliabue soured on the city that was more interested in building libraries than a football stadium.
"The problem was that the fans loved the (former team) Colts too much," said Weinglass in 1991. "And when we began to have the reverses (the team wasn't winning), they reacted very badly (attendance dropped) and the underlined feeling was that it was impossible that we would lose the team. In fact we did.
"They (the owners) said that it wasn't a factor (the team moving)."
Weinglass was competing with two other Baltimore groups for the franchise. They all failed but the Baltimore/Maryland stadium bid was circulated within the NFL. Baltimore was offering a stadium complete with the requisite state of the art luxury boxes, club seats, restaurants, concessions with major revenue streams. The stadium would be paid through a combination of municipal resources including proceeds from the Maryland lottery.
The NFL said no to an expansion team but the terms of the Maryland deal was too good for Art Modell to pass up. In 1995, Modell took the offer (which included a multi-million loan to Modell) and made Weinglass a bit of a prophet.
"The fact of the matter is, the primary basis the league is going to make its decision is what city can make the most money for the league and I think Baltimore can make more money for the league than any other town (in 1991, Memphis, Jacksonville, St. Louis and Charlotte),” said Weinglass. “ (Baltimore) is a bigger city. It's bigger than Charlotte, bigger than San Antonio (which wasn't a serious bidder), we have done all the surveys that show we can fill a 70,000 seat stadium, we have a great big television market, one of the biggest in America. We got all the buttons pushed."
Baltimore has succeeded despite the fact that the market is surrounded by Philadelphia and Washington. The team is looking to expand market share and co-exist with the Redskins in a shared market status like the Giants and Jets in New York and the 49ers and Raiders in the San Francisco Bay Area market. Because of NFL rules not every Ravens game is seen on Washington TV which is 40 miles away nor is every Redskins game is shown on Baltimore TV.
Redskins and Ravens ownership would like to get same market status which would include no scheduling of home games at the same time in both cities. Major League Baseball has given Baltimore and Washington same market status and the United States Olympic Committee considered Baltimore-Washington one market in the bidding for the 2012 Summer Olympics.
It was thought that NFL marketing partner Anheuser Busch would be the deciding factor in St. Louis landing an expansion franchise in 1993. That was a concern for other bidders given AB's cozy relationship with the city of St. Louis and the NFL. But St. Louis was a failed NFL market. Bill Bidwill left town after the 1987 football season and went to Tempe, Arizona. That was a black mark against the city because St. Louis refused to build Bidwill a new football facility. After Bidwill left, Missouri, St. Louis County and the city of St. Louis socked away $258 million for a 70,000 seat domed football facility. The city was willing to help pay some of the costs for an expansion team. Some of the money was going to come from a motel-hotel sales tax hike.
"Central to our application was the stadium," said Jerry Clinton. "The others things that are naturally inherent are the size of our television market. We are the 18th largest TV market in the country. Our market is larger than 35 percent of the markets that currently possess National Football League teams. The, of course, all those things we inherit because of our location and population. We are nearly two a half million people, our location is exactly the population center of the United States, we are accessible, we fit expansion and division realignment in any direction, north, south, east or west, we are always compatible with NFC or AFC plans. On top of them we have a very solid ownership with Walter Payton and Jim Orthwein (the great grandson of AB's founder Adolphus Busch). I think that has to be considered very heavily too.”
Anheuser Busch didn't have much sway over the NFL owners. St. Louis failed. Charlotte was an area that the league really wanted and got the 29th franchise. But number 30 was a fight between Baltimore, St. Louis and Jacksonville. Memphis was not seriously considered.
Wayne Weaver got involved in the Jacksonville bid before the NFL solicited interested people in what amounted to an auction for two franchises. Jacksonville was looked upon as a huge growth city by football people including Robert Irsay who thought about moving his Baltimore Colts to the town as well as Houston's Bud Adams. Neither did but Jacksonville remained attractive.
"We had our mayor with us, Mayor Ed Austin," said Weaver knowing that political support was a major component of any bid back in 1991. "We had our city council president, Warren Jones, we had the gentleman who will renovate our Gator Bowl, the biggest contractor in the southeastern United States, Preston Haskell, and our president David Seldin.
"We have three qualities that we think we set us apart from the other candidate cities and that's what we talked about today. We think we have the best football fans in America. The second thing we talked about and what sets us apart from the competing candidate cities is that we have the only game in town. We have no competition from other major league franchises. I am not sure anybody can make that statement. We have no competition from college sports which Memphis has. We have no competition from other major league franchises and we think the only game in town aspect is an important ingredient. Finally and most importantly was the local ownership group issue. We have the financial credentials to qualify for an NFL expansion team and we made that very clear."
"It is very true that Florida is a very proactive sports state. One of the presenters today (in 1991) in our video is Governor Lawton Chiles, he is truly a supporter of NFL football in Jacksonville. Jacksonville is Florida's city of choice for the NFL. Simply put, the state of Florida is a partner in this quest. The state legislature has put together legislation that encourages and financially supports stadiums for sports in the state of Florida. The (baseball) Marlins are the latest example. We think Jacksonville will be the latest example of why we can compete because we have, among other things, the state of Florida as a financial partner. There are no tax dollars involved, it is a sales tax abatement there is no general revenue taxes involved in the state of Florida."
Jacksonville won the race and got a franchise. But it has been very tough sledding in recent years with rumors that Weaver is ready to pick up and move elsewhere. The stadium seating capacity has been cut and the rough northern Florida economy is not helping the franchise. Still Weaver has made it clear he wants to remain in Jacksonville. But Los Angeles interests have targeted Weaver and plan to try and entice him to move.
Neither Los Angeles nor Anaheim has had an NFL team since the end of the 1994 season. Georgia Frontiere did her 15 years in Anaheim and when a better stadium deal did not develop, she opted to take the St. Louis offer that was still on the table after the NFL gave Charlotte and Jacksonville teams. Raiders owner Al Davis could have had the LA market to himself but negotiations between the NFL, Davis and Hollywood Park racetrack in Inglewood broke down after a deal looked to be coming together.
Davis and the league were going to be what can best be described as partners in the deal. The NFL would award the stadium five Super Bowls in 10 years to get back some of the money Davis and the league were going to put up for the facility. Davis would get revenues from luxury boxes, club seats and concessions. But the NFL decided that five Super Bowls in 10 years was too much for LA and scaled back to three and then just one. Davis would only be the sole tenant for one year with another team moving in and sharing revenues from luxury boxes, club seats and concessions. Those were deal breakers and Davis moved back to Oakland. The NFL is more responsible for having no team in LA than Al Davis.
The LA area lost both teams but unlike Cleveland, they didn’t threaten to sue and replace a team. The NFL expanded into Cleveland after getting a deal done for a new stadium and the new Cleveland Browns started play in 1999. Los Angeles was given a 2002 condition expansion franchise if a stadium was built. There was no available funding for a building like Houston had, so the NFL gave the fourth expansion team to Bob McNair and Houston.
Davis is looking for a new stadium deal as Oakland has not been a panacea for the team money-wise. His Oakland deal is up after 2013.
Los Angeles' Anschutz Entertainment Group (AEG) has told LA city officials they better sign off on a deal to help finance a new football stadium by July 31 and cash strapped Los Angeles seems to be ready to make a deal.
AEG has a list of targeted owners including Stan Kroenke who has the St. Louis Rams. There was a provision in the Georgia Frontiere-St. Louis 20 year contract (which is done in 2014) that probably will come back and haunt the city, county and state. The Rams franchise has to be in the upper quarter or top eight in stadium revenue generation. A 20-year-old facility cannot compete with new places like the New Meadowlands Stadium or Jerry Jones' Dallas Cowboys Stadium in Arlington, Texas. St. Louis may run into the Louisiana problem of 1999 and 2000 when Benson complained that the Superdome was no longer in the top 4 of NFL revenue generators and had fallen to the bottom and needed help or he would have to move.
Ironically it was new stadiums in St. Louis, Jacksonville and Baltimore that helped cause Benson's woes. The new stadiums were cash cows for owners; those owners spent money for scouting staffs and coaches. Baltimore and St. Louis won Super Bowls; Jacksonville was a Super Bowl contender. Benson went to the state house in Baton Rouge and find willing partners in both houses of the legislature and Governor Mike Foster. The Rams franchise may need a handout or might be available for some new facility in 2015.
The NFL is back, although it never went anywhere. No games were missed, the three day draft was held in April and people had to pay for their seats on time or risk losing them. That's the way NFL business operates and the business operations will soon be on display in Santa Clara, Oakland, Los Angeles, San Diego, Toronto, St. Paul, Minnesota and maybe in Jacksonville, South Florida, Atlanta and Buffalo with one certainty: the billionaire owners will be looking for tax breaks for their football businesses which really don't do all that much for the economy.
Evan Weiner, the winner of the United States Sports Academy's 2010 Ronald Reagan Media Award, is an author, radio-TV commentator and speaker on "The Politics of Sports Business." His book, "The Business and Politics of Sports, Second Edition" is available at bickley.com, Barnes and Noble or amazonkindle.
TUESDAY, 26 JULY 2011 16:41
http://www.newjerseynewsroom.com/professional/the-nfl-is-back-and-so-is-the-business-of-football
BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE BUSINESS AND POLITICS OF SPORTS
To the relief of a great many beers distributors, snack food vendors, per diem workers who are employed 10 days a year by NFL teams, fantasy football players, bookies, rather office pool organizers, casino operators in Nevada and those who cannot move from their couches for up to 12 hours at a time on Sunday because they are too busy watching football, the National Football League is back in business.
FOX's Rupert Murdoch, CBS' Sumner Redstone, General Electric's Jeffrey Immelt (NBC’s head prior to the Comcast takeover of the Peacock Network), The Walt Disney Company's Robert Iger and DirecTV executives don't have to explain to anyone including a federal judge in Minnesota why they were willing to underwrite the NFL owners lockout. Iger heads up Disney and one of Disney's companies is ESPN. That cable network would have put up money for the 2011 NFL season using subscribers’ money. Only about a tenth (and that is being generous) of ESPN subscribers watch football yet 100 percent pays and that is permissible thanks to the 1984 Cable TV legislation passed by Congress and signed into law by President Ronald Reagan. People who have no interest in the NFL would have helped support the owners lockout. That law allowed cable TV multiple systems operators to choose what networks they wanted on a basic expanded tier and sell them as one. The legislation probably saved ESPN, CNN, MTV and others from financial ruin.
The NFL owners lockout—which may have been prompted by some owners whose teams play in old facilities like New Jersey's Zygi Wilf's Minnesota Vikings who could not keep up with a salary floor—is over. It is unclear whether the new collective bargaining agreement will address that issue. With the end of the lockout, NFL owners can go back and demand new taxpayers assisted stadiums where needed. The NFL owners as part of the lockout ploy told the San Francisco 49ers ownership not to look for money to pay off the 49ers share of the costs a planned Santa Clara, California stadium because the league owners wanted the players to pay for part of the construction costs.
The players trade association, formerly known as the National Football League Players Association, never helped out broken down old players so it might have been a bit much to expect them to hand over money to owners to help build football facilities. The NFLPA didn't recognize in many cases that some of the retired players with very serious injuries that were sustained during their NFL careers ended up in government social safety nets long before their 65th birthdays such as Medicare and Social Security.
NFL owners and the NFLPA should have collectively bargained long term health care for players but that was not an important issue in the past for the NFLPA. The new CBA seems to have some provision to take care of the health of players but until the CBA is fully digested by all, including the retirees, it is unclear how much help those players may get.
The National Football League and by extension—the players—depends on government subsidies and handouts. The deal with the players is done and now it is time for the league to get new facilities in San Diego, Santa Clara, Oakland (the San Francisco Bay Area), Los Angeles, Minneapolis or Ramsey County, Minnesota and see what can be done with the Buffalo Bills franchise. Arthur Blank is seeking a new facility for his Atlanta Falcons franchise as 19 year old domed stadium that houses his team is quickly becoming antiquated and New York realtor Stephen Ross is stuck with a 24 year old, although updated, facility which is no longer suitable for a Super Bowl outside of Miami.
The mayor of Toronto, Rob Ford—who seems to fit in with the United States Tea Party movement in that he wants to slash services to the bone but not raise taxes for those who can afford a slight increase—may be open to finding public funding to build a National Football League state of the art facility in Canada's financial capital. Ford seems to be like a lot of politicians. Slash spending, cut public jobs and don't raise taxes on the very rich and if you can give the very rich tax breaks for sports facilities go for it. Political leaders in both parties in Minnesota are trying to build Wilf a taxpayers funded facility in some sort of public-private partnership. In Santa Clara, hundreds of millions of public dollars have been set aside for the 49ers planned facility. Louisiana is still giving New Orleans Saints owner Tom Benson cash handouts and New York is doing likewise for Buffalo's Ralph Wilson while cutting services. Florida politicians are seeking a way to help Ross and the NFL’s sad plight.
The 1986 changes in the tax code altered American sports. President Reagan's signature gave owners who played in taxpayers built facilities after 1986 an opportunity to get up to 92 cents on every dollar generated in the building with just as little as eight cents going to pay down the facility's debt. It was great news for owners and a massive expansion of American sports would ensue.
Since the changed occurred, the National Basketball Association has grown from 23 to 30 teams, Major League Baseball has added four teams and in 1990, Major League Baseball signed a new deal with minor league baseball operators which forced cities to renovate or build new minor league parks or risk losing the minor league team. The National Hockey League went from 21 to 30 teams and some franchises were relocated. The 28 team National Football league also expanded and ended up with 32 teams. Major League Soccer was formed and MLS owners are also at the public trough claiming their fair share of tax dollars for stadium construction.
The NFL expansion process started in 1991 and started a chain reaction of events that included creating four expansion teams (Carolina, Jacksonville, Cleveland and Hpuston) and the movement of the Anaheim-based Los Angeles Rams to St. Louis and Art Modell's Cleveland Browns to Baltimore. There was also the transfer of the Houston Oilers franchise to Nashville, Tennessee and Al Davis' Los Angeles Raiders to Oakland. The most eye opening franchise-government deal that evolved out of the 1991 expansion was the $186.5 million 2001 agreement between Louisiana and New Orleans Saints owner Tom Benson that assured Benson would keep his team in the Superdome even though he had an existing long term contract that bounded him to the building. Benson got $186.5 million from cash strapped Louisiana to stay in the city between 2002 and 2010.
In 1991, Baltimore, St. Louis, Memphis, Charlotte and Jacksonville decided to go after an NFL expansion franchise. The NFL never really expanded in the "modern" era (1956-present) because league owners like Chicago's George Halas, Pittsburgh's Art Rooney, and the Mara family's New York Giants had no inkling as to how to market and grow the NFL. Instead expansion was always a reaction to market pressures. When Lamar Hunt was unable to purchase the Chicago Cardinals or get an NFL expansion team in Dallas in 1959, he decided to start the American Football League. The NFL responded by expanding to Dallas and Minneapolis. In the mid-1960s, the NFL went into Atlanta to deny Hunt's league an opportunity to establish a team in that city. In 1966, the NFL granted New Orleans a franchise in exchange for Congressional approval of the AFL-NFL merger and in the 1970s, the NFL expanded to Seattle and Tampa to take potential markets out of circulation for the fledgling World Football League There was no outside pressure to expand in 1991 except there was money on the table and other owners could see what cities were willing to do to get an NFL team.
The NFL found out in a hurry that cities would be willing to pay a ransom for a team.
The league liked Charlotte and the possibility that a former player—Jerry Richardson—would own the franchise. Richardson didn't need much public money because the team was going to get ticket buyers to pay twice for seats and that would pay for the construction of the facility. Richardson's "personal seat licensing" scheme required ticket holders to buy a stadium seat over a set amount of years and then pay for a football game. NFL owners were impressed by the pricing mechanism and awarded Richardson a franchise but the NFL wanted two expansion teams and the 28 owners would split up $280 million with each owner getting a $10 million payment.
Boogie Weinglass and the author Tom Clancy pursued a Baltimore franchise. Weinglass presented a proposal that Maryland would build a stadium and the team would be well supported even though Robert Irsay moved out of the city in 1984 and NFL Commissioner Paul Tagliabue soured on the city that was more interested in building libraries than a football stadium.
"The problem was that the fans loved the (former team) Colts too much," said Weinglass in 1991. "And when we began to have the reverses (the team wasn't winning), they reacted very badly (attendance dropped) and the underlined feeling was that it was impossible that we would lose the team. In fact we did.
"They (the owners) said that it wasn't a factor (the team moving)."
Weinglass was competing with two other Baltimore groups for the franchise. They all failed but the Baltimore/Maryland stadium bid was circulated within the NFL. Baltimore was offering a stadium complete with the requisite state of the art luxury boxes, club seats, restaurants, concessions with major revenue streams. The stadium would be paid through a combination of municipal resources including proceeds from the Maryland lottery.
The NFL said no to an expansion team but the terms of the Maryland deal was too good for Art Modell to pass up. In 1995, Modell took the offer (which included a multi-million loan to Modell) and made Weinglass a bit of a prophet.
"The fact of the matter is, the primary basis the league is going to make its decision is what city can make the most money for the league and I think Baltimore can make more money for the league than any other town (in 1991, Memphis, Jacksonville, St. Louis and Charlotte),” said Weinglass. “ (Baltimore) is a bigger city. It's bigger than Charlotte, bigger than San Antonio (which wasn't a serious bidder), we have done all the surveys that show we can fill a 70,000 seat stadium, we have a great big television market, one of the biggest in America. We got all the buttons pushed."
Baltimore has succeeded despite the fact that the market is surrounded by Philadelphia and Washington. The team is looking to expand market share and co-exist with the Redskins in a shared market status like the Giants and Jets in New York and the 49ers and Raiders in the San Francisco Bay Area market. Because of NFL rules not every Ravens game is seen on Washington TV which is 40 miles away nor is every Redskins game is shown on Baltimore TV.
Redskins and Ravens ownership would like to get same market status which would include no scheduling of home games at the same time in both cities. Major League Baseball has given Baltimore and Washington same market status and the United States Olympic Committee considered Baltimore-Washington one market in the bidding for the 2012 Summer Olympics.
It was thought that NFL marketing partner Anheuser Busch would be the deciding factor in St. Louis landing an expansion franchise in 1993. That was a concern for other bidders given AB's cozy relationship with the city of St. Louis and the NFL. But St. Louis was a failed NFL market. Bill Bidwill left town after the 1987 football season and went to Tempe, Arizona. That was a black mark against the city because St. Louis refused to build Bidwill a new football facility. After Bidwill left, Missouri, St. Louis County and the city of St. Louis socked away $258 million for a 70,000 seat domed football facility. The city was willing to help pay some of the costs for an expansion team. Some of the money was going to come from a motel-hotel sales tax hike.
"Central to our application was the stadium," said Jerry Clinton. "The others things that are naturally inherent are the size of our television market. We are the 18th largest TV market in the country. Our market is larger than 35 percent of the markets that currently possess National Football League teams. The, of course, all those things we inherit because of our location and population. We are nearly two a half million people, our location is exactly the population center of the United States, we are accessible, we fit expansion and division realignment in any direction, north, south, east or west, we are always compatible with NFC or AFC plans. On top of them we have a very solid ownership with Walter Payton and Jim Orthwein (the great grandson of AB's founder Adolphus Busch). I think that has to be considered very heavily too.”
Anheuser Busch didn't have much sway over the NFL owners. St. Louis failed. Charlotte was an area that the league really wanted and got the 29th franchise. But number 30 was a fight between Baltimore, St. Louis and Jacksonville. Memphis was not seriously considered.
Wayne Weaver got involved in the Jacksonville bid before the NFL solicited interested people in what amounted to an auction for two franchises. Jacksonville was looked upon as a huge growth city by football people including Robert Irsay who thought about moving his Baltimore Colts to the town as well as Houston's Bud Adams. Neither did but Jacksonville remained attractive.
"We had our mayor with us, Mayor Ed Austin," said Weaver knowing that political support was a major component of any bid back in 1991. "We had our city council president, Warren Jones, we had the gentleman who will renovate our Gator Bowl, the biggest contractor in the southeastern United States, Preston Haskell, and our president David Seldin.
"We have three qualities that we think we set us apart from the other candidate cities and that's what we talked about today. We think we have the best football fans in America. The second thing we talked about and what sets us apart from the competing candidate cities is that we have the only game in town. We have no competition from other major league franchises. I am not sure anybody can make that statement. We have no competition from college sports which Memphis has. We have no competition from other major league franchises and we think the only game in town aspect is an important ingredient. Finally and most importantly was the local ownership group issue. We have the financial credentials to qualify for an NFL expansion team and we made that very clear."
"It is very true that Florida is a very proactive sports state. One of the presenters today (in 1991) in our video is Governor Lawton Chiles, he is truly a supporter of NFL football in Jacksonville. Jacksonville is Florida's city of choice for the NFL. Simply put, the state of Florida is a partner in this quest. The state legislature has put together legislation that encourages and financially supports stadiums for sports in the state of Florida. The (baseball) Marlins are the latest example. We think Jacksonville will be the latest example of why we can compete because we have, among other things, the state of Florida as a financial partner. There are no tax dollars involved, it is a sales tax abatement there is no general revenue taxes involved in the state of Florida."
Jacksonville won the race and got a franchise. But it has been very tough sledding in recent years with rumors that Weaver is ready to pick up and move elsewhere. The stadium seating capacity has been cut and the rough northern Florida economy is not helping the franchise. Still Weaver has made it clear he wants to remain in Jacksonville. But Los Angeles interests have targeted Weaver and plan to try and entice him to move.
Neither Los Angeles nor Anaheim has had an NFL team since the end of the 1994 season. Georgia Frontiere did her 15 years in Anaheim and when a better stadium deal did not develop, she opted to take the St. Louis offer that was still on the table after the NFL gave Charlotte and Jacksonville teams. Raiders owner Al Davis could have had the LA market to himself but negotiations between the NFL, Davis and Hollywood Park racetrack in Inglewood broke down after a deal looked to be coming together.
Davis and the league were going to be what can best be described as partners in the deal. The NFL would award the stadium five Super Bowls in 10 years to get back some of the money Davis and the league were going to put up for the facility. Davis would get revenues from luxury boxes, club seats and concessions. But the NFL decided that five Super Bowls in 10 years was too much for LA and scaled back to three and then just one. Davis would only be the sole tenant for one year with another team moving in and sharing revenues from luxury boxes, club seats and concessions. Those were deal breakers and Davis moved back to Oakland. The NFL is more responsible for having no team in LA than Al Davis.
The LA area lost both teams but unlike Cleveland, they didn’t threaten to sue and replace a team. The NFL expanded into Cleveland after getting a deal done for a new stadium and the new Cleveland Browns started play in 1999. Los Angeles was given a 2002 condition expansion franchise if a stadium was built. There was no available funding for a building like Houston had, so the NFL gave the fourth expansion team to Bob McNair and Houston.
Davis is looking for a new stadium deal as Oakland has not been a panacea for the team money-wise. His Oakland deal is up after 2013.
Los Angeles' Anschutz Entertainment Group (AEG) has told LA city officials they better sign off on a deal to help finance a new football stadium by July 31 and cash strapped Los Angeles seems to be ready to make a deal.
AEG has a list of targeted owners including Stan Kroenke who has the St. Louis Rams. There was a provision in the Georgia Frontiere-St. Louis 20 year contract (which is done in 2014) that probably will come back and haunt the city, county and state. The Rams franchise has to be in the upper quarter or top eight in stadium revenue generation. A 20-year-old facility cannot compete with new places like the New Meadowlands Stadium or Jerry Jones' Dallas Cowboys Stadium in Arlington, Texas. St. Louis may run into the Louisiana problem of 1999 and 2000 when Benson complained that the Superdome was no longer in the top 4 of NFL revenue generators and had fallen to the bottom and needed help or he would have to move.
Ironically it was new stadiums in St. Louis, Jacksonville and Baltimore that helped cause Benson's woes. The new stadiums were cash cows for owners; those owners spent money for scouting staffs and coaches. Baltimore and St. Louis won Super Bowls; Jacksonville was a Super Bowl contender. Benson went to the state house in Baton Rouge and find willing partners in both houses of the legislature and Governor Mike Foster. The Rams franchise may need a handout or might be available for some new facility in 2015.
The NFL is back, although it never went anywhere. No games were missed, the three day draft was held in April and people had to pay for their seats on time or risk losing them. That's the way NFL business operates and the business operations will soon be on display in Santa Clara, Oakland, Los Angeles, San Diego, Toronto, St. Paul, Minnesota and maybe in Jacksonville, South Florida, Atlanta and Buffalo with one certainty: the billionaire owners will be looking for tax breaks for their football businesses which really don't do all that much for the economy.
Evan Weiner, the winner of the United States Sports Academy's 2010 Ronald Reagan Media Award, is an author, radio-TV commentator and speaker on "The Politics of Sports Business." His book, "The Business and Politics of Sports, Second Edition" is available at bickley.com, Barnes and Noble or amazonkindle.
Subscribe to:
Posts (Atom)