Ian Eckhardt's blog ::The John Report Presents: The 2009 WWE Johnny Awards
By now, the word "lockout" has become a household name and it's about time the players either give in to the owners or just start their own league. Yes, players, start your own league already. Without the owners. Heck, sponsored by Facebook or even Bill Gates, himself. Yes, that's right, just start your own league without the owners. Sure, you might want the tradition of playing for the Cowboys, Redskins, Colts, Patriots and Bears, but today is a different era and you've shown over the past few months you're capable of doing things on your own. Every quarterback in the league formerly known as the NFL has led some form of organized workout/practice so it's clear you don't need management around to tell you what to do and how to do it. DeMaurice Smith should at least put the scenario of a "players league" out on the table to get a bigger piece of the pie for you, the players. The infrastructure is there. There are a ton of stadiums around the country available that NFL owners don't own and have exlusive rights to so there's one major hurdle cleared. And you've clearly demonstrated over the past few months how knowledgeable you are about the inner workings of the NFL. If the NFL owners don't give you what you want and deserve, you could simply turn your backs on them and create your own league. As outlandish as it may sound, it isn't as difficult as it may seem. When William "Pudge" Heffelfinger received $500 to play for the Alleghany Athletic Association on November 12, 1892, it began the long-lasting relationship between the athletes and the people who could pay for athletes to compete. Back then, football clubs and associations wanted the best players available to win games, which would give their cities some fabric of civic pride. The owners of these clubs and associations needed to pay for the best talent similar to how today's game operates. As professional football grew and eventually blossomed into a business, owners were needed even more because they had the money to provide salaries, they were instrumental in getting stadiums built for the increasing number of fans, they knew how to use their business savvy to market the organizations, they had the economic capital to withstand dips in revenue and they had the connection and relationship with the radio and television industries to make a boatload of money with broadcasting deals. Flash forward to today and players actually have a Heffelfinger-type of upper hand. Heffelfinger had a reputation as a beast of a player and every club and association wanted his services. Other players played, but he was a star and he could pick and choose who he played for whenever, wherever. The stars of the modern game fuel the popularity of the sport much like Heffelfinger did. Going back to Halas and Namath and Unitas and Bradshaw and Staubach and Theisman and so forth and so on, these names made the NFL and they helped their teams define the area where they were situated. Fans today are drawn to Tom Brady, Brett Favre, Chad Ochocinco and Michael Vick in similar ways, but more and more, it is because of their star status and not because they wear a particular jersey. If Brady played for the Browns or the Chiefs or the Texans, he would be picked first in the fantasy draft just as often as he would if he were wearing a Patriots jersey. But the stars of today have it better than Heffelfinger did. Unlike the first professional baller, they have the understanding of how to manage the game. They have the knowledge of how a league works and how to operate it. And most importantly they have stadiums to play games. So here in a nutshell is how you, the players, could make it on your own: 1. Seek a major sponsor to fund the entire league to make up for any start-up costs. If players decided to go their own way, they could do it through private investors who could front the start-up costs based upon figures already in place from the NFL's numbers. The $9.3 billion in question wouldn't have to be divided between players and owners; it could be divvied up amongst the players based on a formula made famous by economist Gerald Scully (see below). It could be called something like the Google Football League or the Players Football League sponsored by Facebook. Imagine all the Like's. While the initial money available wouldn't approach the $9.3 billion in question, the players would no longer have to be concerned with debating whether 50 percent or 47.5 percent or 49 percent or whatever percent was the most reasonable percent. Even if the initial money available dropped by $2 million, the $7.3 billion available would easily exceed half of $9.3 billion. In addition, sponsorship deals on uniforms similar to European soccer clubs would bring a substantial amount of money to any start-up scenario. 2. Use stadiums that either are publicly-funded entities or use other venues that are vacant and house other professional sports. Stadiums in St. Louis, Oakland (which was renovated, not constructed, for $128 million), Baltimore, Tampa Bay, Cleveland and Cincinnati were built primarily with public funds and could be used contractually with the stadium authority that runs each structure. Meanwhile, the Houston Astrodome now sits empty with $32 million in public debt on it and the Silverdome in Detroit, which was recently bought through an auction by Canadian real estate developer Andreas Apostolopoulos for $550,000, is looking for tenants. Or to avoid any conflict whatsoever, the players could seek alternative structures for their games. College football was played at Yankee Stadium and Tropicana Field last year and could easily house a professional football team. CitiField in New York already played host to a soccer match -- the Greek national team against Ecuador -- that was well-attended and could easily be the new home for the new team formerly known as the Jets. You have plenty of college football stadiums to choose from, including Boston College's Alumni Stadium, Penn's Franklin Field and Washington's Husky Stadium. And Los Angeles could have its football back with teams playing in the Coliseum and the Rose Bowl. 3. Find the highest bidder for the new television contract, then reap the profits. Currently, the NFL has contracts with CBS ($3.73B), NBC ($3.6B), Fox ($4.2B) and ESPN ($8.8B) that provides a combined total of $20.4 billion to the economic pool. ESPN's deal equates to $1.1 billion annually for the NFL and the money made annually from the terrestrial networks ranges between $600 million (NBC) to $712.5 million (Fox). In addition, DirectTV ($3.5B) just had its five-year contract with the NFL end after last season. Other major deals that the NFL has profited from over the past five or six years include $600 million from Sprint, $300 million from EA Sports, $220 million from Sirius Satellite Radio and $120 million from Westwood One. The total combined revenue from these contracts approaches $4 billion annually. Based on these figures, the players could negotiate with new suitors and then use the projected income to fulfill players' salaries and operating costs. 4. Use Gerald Scully's formula to determine player contracts. Scully, an economist who passed away in 2009, wrote an article in a 1974 edition of the American Economic Review entitled, "Pay and Performance in Major League Baseball," shortly after the 1972 baseball season opened with the first players' strike in baseball history and after a lockout threatened the 1973 season (it never transpired), that could play a huge role in determining players' salaries today. In the 1974 article, Scully devised a formula to figure out a player's worth to the organization, both in the won-lost column and the team's receipts. He used a variety of statistical measures like slugging percentage for hitters and the strikeout-to-walk ratio for pitchers and combined them with a complex formula for determining team revenue based additionally on a team's won-lost percentage, the attendance figures and the marketability of a franchise through the popularity of a player. For example, according to Scully, Hank Aaron had a $520,800 value to the Atlanta Braves in 1968 and Sandy Koufax $725,000 to the Los Angeles Dodgers in 1966, which was his last season. By comparison, Aaron's top salary never exceeded $250,000 a season in his 23-year career and Koufax earned his highest salary, $130,000, in his last season as a pro. Players like Tom Brady, Drew Brees, Ray Lewis, Adrian Peterson and Peyton Manning would certainly profit off this formula. Scully also theorized that "mediocre players contribute in excess of $200,000 to team revenues" and this statement came back in the early 1970's. Role players based on this formula would come away with a better piece of the pie than what has been speculated in the ongoing negotiations. In addition, the rookie pay scale would decrease initially, but would skyrocket based on performance and popularity. Proven players have been burdened over the years by rookies who have been given large sums of money without professional merit. By changing the rookie salary structure, teams would avoid having to pay out big guaranteed money and the money "saved" would be used in turn to reward the ones who have lived up to expectations. 5. Organize a board of directors including former and current players and coaches, elect a C.E.O, and construct an organizational structure similar to the WWE or the Green Bay Packers. Instead of the current system in which a conglomerate of filthy rich owners dictate how the money is divided, how it's managed, how the rules and regulations are formulated and then spawn it onto the players to take it or leave it -- listen, Adrian Peterson may have overstated the whole slavery word, but he's got a point in how the owners have a pretty heavy hand -- with the new league and organizational structure, players will have a say in what an illegal hit is, how a player can celebrate in the end zone, how much a player should be fined (if at all) if he does something illegal in the world away from the game and how many games should be played during the regular season. The World Wrestling Entertainment company is a publicly traded, privately controlled company run by a majority owner who pays his wrestlers based upon performance and popularity. "Triple H" (Paul Michael Levesque) is the highest paid wrestler, according to Forbes, and had over $3 million in his 2011 earnings with John Cena coming in a close second at $2.5 million. The WWE had $119.9 million in revenue last year. The Packers are unique in sports as the only non-profit, community-owned franchise in the major American professional sports leagues. They have a 45-member board of directors which includes a seven-member Executive Committee that governs the organization. This committee includes a president, vice president, treasurer, secretary and three members-at-large. Surprisingly, this ownership structure violates the current league rules stipulated by the NFL owners -- a limit of 32 owners of one team with one owner having a minimum of 30 percent stake. Using these two models, the new players' league could organize into a structure that elects a commissioner, a board of directors and an executive committee that governs the entirety of the teams as a whole instead of on an individual approach for each entity. Major League Baseball has provided evidence over the past two years in which it took control of the Texas Rangers to save the organization for the betterment of the League, the players, the employees and the rest of the teams. It is now in the midst of deciding whether to completely do the same with the Los Angeles Dodgers. 6. Reduce the amount of teams and players, add new markets, make two divisions in two conferences, change the preseason and add playoff games to add more revenue, lower ticket prices and boost salaries. The NFL suffered a decrease in attendance for the third straight year this past season. Ticket sales for the league's 32 franchises had a drop of 1 percent to 2 percent and total season ticket sales were down by 5 percent. The three-year decline coincided with the country's depression and the economy doesn't appear to be changing anytime soon. Add the lockout to the angst and things may get gloomier quicker than rosier. Finally, the improvement in television technology has made going to a game less of priority in terms of experiencing the game. The new league needs to take advantage of areas that have proven they can provide an audience during an economic downturn and the league needs to address going to places that have exhibited. Using attendance figures, unemployment figures, the rankings of the top 50 media markets and analysis from reports by the Boyd Company, a Small Business & Entrepreneurship Council and the Milken Institute, which ranks the Best-Performing Cities in terms of how well they are creating and sustaining jobs and economic growth. Some areas that could take advantage of several areas prospering economically with a solid base for sports attendance include Birmingham, a city that had a team in the United States Football League which was one of the better run and more viable franchises during the second professional league's existence. Birmingham is in a state doing very well economically with eight areas ranked in the top 100 nationally in the Milken Index. Oklahoma City ranks No. 21 nationally in the Milken Index and has a fan base worthy of recognition after helping the NBA's Thunder rank in the top 15 each season since the team's arrival from Seattle. Salt Lake City is 25th nationally and has supported the Utes in droves during the college football team's success. Jacksonville, Miami and Tampa Bay have each finished in the bottom third for attendance over the past two seasons and one team needs to go or possibly two. While college football reigns supreme in the Sunshine State, professional football has had a difficult time sustaining success over the past few years because of the recession. The best solution should be to create one team that represents the entire state and place it in Orlando, which ranks in the top 100 in the Milken Index and has been named as the nation's least expensive cities to launch a corporate headquarters. The state of Ohio would be better off with one team located between Cincinnati and Cleveland, two cities with teams that have not had full attendance over the past few seasons. Columbus will have to deal with the demise of Buckeye football after the impending NCAA sanctions and could use a boost from professional football. Los Angeles is a given naturally because of the NFL's resistance to revisit the area without a new stadium. The addition of new areas in blossoming markets along with teams in traditional places like Boston, Chicago, Dallas, New York and Washington, D.C. would bring excitement to the new league that would separate it from the NFL. With the tweaks and additions, the new league would have 24 teams divided into two-division conferences -- Eastern and Western -- with the Atlantic and Sunbelt Divisions in the Eastern Conference and the Central and Pacific Divisions in the Western Conference. Six teams would comprise each division and those teams would play each other twice on a home-and-away schedule and the other six conference teams once for a 16-game season. The structure of each division would address travel situations, which in turn would save money for teams in terms of airline costs -- think green!! For example, the North Division in the Eastern Conference would include Boston, New York, New Jersey, Philadelphia, Pittsburgh and Columbus with the farthest flight time between Boston and Columbus at eight minutes over two hours and 800 flight miles. In fact, the farthest distance would exist between the Seattle and Phoenix markets in the Pacific Division of the Western Conference at 1,114 miles or a little under three hours. Following is an idea of what the model could look like, the areas where teams could play based on certain economic and media criteria and the stadiums that could be used: The Players Football League (PFL) 2 Conferences: Eastern and Western Eastern Conference: ATLANTIC DIVISION New York (Yankee Stadium, 52,325) New Jersey (Rutgers Stadium, 52,454) Boston (Alumni Stadium -- Boston College, 44,500) Philadelphia (Franklin Field -- Penn, 52,593) Pittsburgh (PNC Park -- Pirates, 37,898) Columbus (Ohio Stadium -- Ohio State, 102,329) SUNBELT DIVISION Washington (RFK Memorial Stadium, 56,454) North Carolina (Raleigh -- Carter Finley Stadium, NC State, 57,082) Birmingham (to replace Atlanta, Legion Field -- UAB, 71,594) Orlando (Florida Citrus Bowl, 70,188) Louisiana (Baton Rouge -- LSU, 92,400) Atlanta (Sanford Stadium -- UGA, 92,746 or Bobby Dodd, GT, 55,000) Western Conference: CENTRAL DIVISION Chicago (Ryan Field -- Northwestern, 47,130) Missouri (Faurot Field, Columbia -- 62,000) Indiana (Memorial Stadium, Bloomington, 53,500) Oklahoma City (Gaylord Family Stadium, Norman -- OU, 82,112) Houston (Rice Stadium, 70,000) Dallas (Cotton Bowl, 92,200) PACIFIC DIVISION Denver (Coors Field, 50,449 or Folsom Field, the Buffs, 53,750) Arizona (Phoenix/Tempe, Sun Devil Stadium, 73,379) Los Angeles (the Coliseum, USC, 93,607 or Rose Bowl, 92,542) San Francisco (Memorial Stadium, Cal, 73,347 or AT&T Park, 41,663) Seattle (Husky Stadium, 72,500 or Safeco Field, 47,116) Salt Lake City (Utah Utes, 46,500) Each team will have a max roster of 60 players (with a 7-person practice squad). The official roster total for the league, excluding practice players, will equal 1,440 -- a drop of 256 players. SEASON STRUCTURE: The season will feature the following schedule: A 2-game exhibition season starting with games in mid-August and finishing the weekend before Labor Day weekend; A 16-game, 17-week regular season beginning with games on Labor Day weekend, Sunday and Monday and running through to late December or early January; and A 24-team single-elimination playoffs beginning in January, culminating in the Big Game in early February. Games will be played primarily on Sunday, Monday and Tuesday nights. The playoffs will include every team with the four best records in each conference receiving a first-round bye. Having every team make the playoffs would ensure even more profitability for the league. The winning teams of the wild card playoff would then play against the top four seeds and if there are any upsets, playoff matchups would be based on the higher seed left against the lower seed, continuing throughout the postseason until the Big Game championship. The final game would be played the first weekend of February in warm-weather states. The All-Star festivities leading up to the Big Game would replace the NFL's Pro Bowl in a punt, pass and kick type of competition. So, players, either man up and start your own league or just sign the darn collective bargaining agreement already. We're ready for some football. |
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