Now that the NFL season is over, everybody’s eyes are focused on the labour negotiations and whether an agreement can be reached in time to save the start of the 2011 season. And after face-to-face negotiations on Wednesday, Thursdays planned talks were canceled because the two sides were just too far apart.
How far apart? Let’s take a look.
Under the current Collective Bargaining Agreement (CBA), the players take 60 per cent of the estimated $9 billion in revenue, but only after the owners take $1 billion in expenses off the top. That is about $4.8 billion for the players and $4.2 million for the owners, $1 billion of which goes to expenses.
The players have proposed an even 50-50 split of ALL the revenue (before the cut.) That would mean approximately $4.5 billion for each side, which is actually a $300 million drop in what the players are making now, assuming revenues do not change.
The owners have also proposed an approximately 50-50 split, but only after skimming $2 billion off the top for expenses such as building stadiums. That would give the players just $3.5 billion. That would be a 27 per cent cut from their current level.
So right now, the players and the owners are at odds over $1 billion of the estimated $9 billion in revenue. It is still early in the negotiations, but the two sides have a ways to go.
Business Insider Emails & Alerts
Site highlights each day to your inbox.