Sports Law & Lockouts

Sports have played an essential role in many humans' every day lives. Players have often been looked up to as heros, those who are so talented that they get payed to show off their talents for us viewers. In past years, sports have been having legal issues that could have ruined the passion behind the games if not for sports law. In the following presentation, three different lockout cases: the NBA, NHL and NFL.

NFL CBA Expiration... Lockout?

The NFL

When Aaron Rodgers and the Green Bay Packers triumphed over their competition, thePittsburgh Steelers in Super Bowl XLV, there were far more implications than who gets to bring home the Lombardi Trophy. In fact, the broadcast of Super Bowl XLV became the most-watched program in TV History racking up an average of 111 million viewers and 162.9 million viewers in total over the course of the game. Football has quickly become the most popular sport in this country and subsequently the most profitable, hauling in an annual revenue somewhere in the neighborhood of 9 Billion dollars. However, the problems surrounding the NFL lately have focused on how to divide up that money between the NFL and NFLPA (NFL Players Association). This dispute, which has loomed over every season since 2008, when the NFL owners opted out of the 1993 CBA (Collective Bargaining Agreement) has been carried into this year's off season as the focal point for NFL actions. During the super bowl, the NFLPA took out a 30 second ad that displayed the message, “Let us/them Play,” throughout its duration; I wish it was that simple.

The Dispute

For the past several months, every single one of those 162,900,000 fans have sat on edge as labor talks pressed onward. While the course of this dispute has been swept up in a media frenzy, many notable figures such as the President himself, have begun to weigh in; “You’ve got owners, most of whom are worth close to $1 billion. You’ve got players who are making millions are dollars. My working assumption at a time when people are having to cut back, compromise and worry about making the mortgage and paying for their kids’ college education is that the two parties should be able to work it out without the President of the United States intervening... I’m a big football fan, but I also think for an industry that is making $9 billion a year in revenue, they can figure out how to divide it up in a sensible way and be true to their fans who are the ones who, obviously, allow for all of the money that they are making,” – (President Obama) As is the case with many large businesses, the NFL as a whole, players and owners, showed a complete disregard for their customers or fans with the most recent development. It was a bleak weekend for NFL Owners, players, coaches and especially fans across the board. As of Saturday March 14, 2011, the NFLPA is (at least temporarily) no longer the exclusive collective bargaining agent of NFL players. What this means?........... LOCKOUT

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What is a lockout?- a management action resisting employee's demands; employees are barred from entering the workplace until they agree to terms.

- Although the NFL has effectively been lead into a lockout, this will have no effect on whether or not there will be a season this September IF the Players and NFL can agree to a new CBA before then.

Out of the Conference room and into the Court Room

When talks began, the NFLPA, represented by executive director, DeMaurice Smith, and the NFL represented by commissioner Rodger Goodell met face to face at the table. When that failed, they turned to mediation, an alternative dispute resolution that calls for a mediator to watch over and facilitate discussions. However, 16 days at the office of a presidentially appointed federal mediator couldn't stop the Lockout from arriving. Within the course of a couple days following the NFL's declaration of a lockout, a class-action lawsuit has been brought on on behalf of the NFLPA against the NFL by 10 players including Tom Brady, Drew Brees, and Peyton Manning. As shocking as it is, three of the NFL's best players will now be serving as Plaintiffs. The court date has been set for April 6, 2011 as the dispute now lies in the hands of U.S. District Judge David Doty (who has presided in Minniapolis since 1993 and oversaw the last NFL labor dispute.)

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In the end, I can see no possible outcome in which the NFL will miss the next season due to the absence of a CBA or a lockout. If we have learned anything from past work stoppages in other sports such as the NHL in 2004, it is that it will certainly put a damper on the future growth and prosperity of the sport. The undeniable truth is that one side will have to give in eventually… for the fans' sake, I hope that moment is sooner than later but at least for now, all we can do is wait.

The National Football League Collective Bargaining Agreement

In March of 2011, The National Football League's Collective Bargaining Agreement is set to expire. What is a CBA you ask. It is defined as a legally enforceable contract for a specified period between the management of an organization and its employees represented by an independent trade union. It sets down and defines conditions of employment (wages, working hours and conditions, overtime payments, holidays, vacations, benefits, etc.) and procedures for dispute resolution. Also called labor agreement, union agreement, or union contract. But this season, 2010, is the last season the CBA will cover. If the players Union and Owners are somehow unable to come to an agreement, this will be the first time since 1987 that the players were locked out. In this year, management created replacement teams and the union, after some of its most famous members crossed the picket line, suffered a humiliating defeat. In the 20 years afterward, it became sport to kick the longtime union boss, the late Gene Upshaw, as a man who negotiated a bad deal for the players. Apparently, his critics did Upshaw a disservice since it's the owners who now say that the players got the better of them, especially since 2006, and management needs a new deal. The chief of the players association at this time is Demaurice Smith.

Smith said that he and his team are preparing for war if they and the owners are unable to come to an agreement before the CBA expires. He and Commissioner Roger Goodell have had an off and on battle on who is correct when it comes to getting an agreement done. Smith has also stated that if necessary he would get the United States Congress involved, as he has worked in Washington previous and has connections with the Obama administration. The reason there have been many problems with these negotiations, is because the owners believe that the terms that are in place now have them getting a bad deal. They believe that it is unfair that the players receive 60 percent of the leagues total gross football revenue. Not only is he concerned about the players work stoppage and loss of pay, he more worried about all the little people that work within the league for teams that could lose all of their paychecks which may not be a lot to the players, but everything to those little people. Smith is trying to have the players best interest and back in September, he stated that he and the players would love to have it done by November. Well, I highly doubt that they will get it done in the next week due to the fact that there are so many issues between players and owners. The owners annual intake has dropped 200 million dollars since 2006. They believe that this number will continue to decrease, which is why they are not set on keeping the same terms from this CBA to the next. The players like the CBA the way it stands now, but the owners terms that they have discussed, take the share back decades where it was not very good for the players. The biggest losers of all may be the free agents of 2011.There are certain boundaries players have to stay in, in order to be restricted or unrestricted. Usually, under a cap they could be unrestricted after four years of service, but with none it would have to be six years instead. Smith has also claimed that the league is also demanding a 18 percent decrease in players salaries which doesn't sit well with them. In recent months it has been reported that Goodell and Smith were working on a 6 year deal for the new CBA that will run through the 2016 season. This deal is still being reworked due to many concerns from the players and owners that they are equal. Kevin Mawae, president of the players union as well as New England Patriots owner Robert Kraft and Dallas Cowboys owner Jerry Jones have all recently stated that they may be getting closer to wrapping up this deal at their next meeting in December. Mawae stressed that he wants this done not only for the players, but the fans that want to enjoy some good football for the rest of their lives. He also said that since 2006, the players have contributed 3 million dollars to new stadium construction and he says that even though the players are losing things like money and health care, the owners were the ones who opted out in 2008 by unanimous decision. The CBA expiration has also put off plans to build new stadiums. The San Francisco 49ers were hoping to be able to start construction on their new stadium. This has also put off plans to move a team to Los Angeles where a super stadium would be built. A team that has been mentioned frequently due to their smaller market and fan base is the Jacksonville Jaguars. 

Take a look at it this way, the NFL is a business like any other. It takes in income and other things like that. If that business doesn't run the way it is supposed to between the bosses and the employees, then that business ceases to work. They cannot function if the two head groups are unable to able to agree on who gets what percent of income from each area they get income. For the NFL it is things like ticket sales, jersey sales, food sales, commercials, stadiums, etc. There are many expenses that they have to deal with, and they are unable to come to who gets what profit and who pays for this and how much do they pay. The Collective Bargaining Agreement is up in arms. Who will be the winner in the end? In the coming months, we should to hope to find out if we can watch football in 2011 with the regular players at the same level, as previous years.

 

Is the NFL Liable for Dementia?

Ralph Wenzel was a healthy offensive guard in the NFL years ago. Now he needs assistance for even the easiest of tasks. The 67 year old is suffering from dementia. His wife, Dr. Eleanor Perfetto, filed a worker's compensation claim on his behalf. Perfetto, whose husband has been living in an assisted living facility for three years, is pushing for worker compensation from the NFL. Perfetto filed the claim in the state of California, which has an interesting worker's compensation system for retired professional athletes. Under the system, athletes need to have played only one game in the state of California during their career. A single game would make them eligible to receive over $100,000 in compensation for certain injuries.

Wenzel's claim is unique. Unlike the other claims which have dealt with orthopedic surgeries, Perfetto is claiming that her husband has received dementia because of his seven years spent playing pro football. Lawyers estimate the potential value of the case to be over $1 million. This would be worrisome for the league because many other players would be able to file similar suits. The teams and their insurers could be liable for over $100 million under the California system if players were to receive compensation for dementia. As of now the league would be able to cover the cost, but if insurance premiums rise, the league may have to change some of its rules to decrease the likelihood of head injuries. One proposal is to forbid linemen from using a three point stance.

Dennis Curran, the NFL's senior vice president for labor litigation and policy, said that the league was already providing financial aid to families of player's suffering from dementia by paying parts of medical expenses and doctor visits. Most claims are payed by teams or insurance carriers. Perfetto may have difficulty winning her claim due to her participation in the 88 plan. This plan is a program run by the NFL and the player's union that reimburses medical costs of families with former NFL players suffering from dementia up to $88,000 a year. But, players who played less than four seasons are not eligible for the plan. The California law states that the employer or insurance carrier has to pay for all the current and future medical costs as well as the costs incurred as a result of the workplace injury, which is why Wenzel's case could be worth more than $1 million.

Research has revealed that retired football players have an increased rate of early-onset dementia. But, the difficulty is proving that the dementia was caused by football and not natural events. Personally, I believe that Wenzel's dementia is caused from his football years. But, there is no way to prove this. Thus, I don't think that his claim will win. On the other hand, I do think the NFL should be liable for dementia because the evidence supports the fact that playing football increases the likelihood of the disease. It is extremely sad that these retired players have to suffer so much as a result of providing entertainment for fans. I think it is the league's responsibility to provide these players with adequate compensation for their injuries. Furthermore, I disagree with the law in California. I think it is absurd that a professional athlete only needs to have played one game in the state to be eligible for compensation. Even if the player was not injured in the game they played in California they can still receive hundreds of thousands of dollars due to the system. Overall, I think that the NFL is liable for dementia and that a case will eventually be presented in which it is clear that the retired player's dementia is a result of participating in the NFL. Until such a case happens, the NFL is not going to worry about providing compensation for dementia under the California system.

Michael Crabtree finally signed with 49'ers!

On October 7, 2009, 49'ers first round draft pick, Michael Crabtree, signed with the team after a six month hold out. It is reported that the 49'ers and Crabtree agreed to a six year, 32 million dollar contract. But it gets better. The 49'ers are willing to bump that six year 32 million dollar deal, to a five year 40 million dollars if Crabtree can acheive certain tasks. A certain source tells ESPN that if Crabtree can make it to the Pro Bowl in one of his first four years, and play 80 percent of the offensive snaps, of a season where the 49'ers make it to the playoffs, the 49'ers are willing to drop the six year deal to a five year deal. Another way that the 49'ers could lower his contract years is if he goes to the Pro Bowl in one of first four years, and goes to the Pro Bowl again in his fifth year. Overall, Crabtree is guaranteed 17 million dollars from his 32 million dollar contract, but is looking to make 19 million dollars over three years, and 23 million dollars over four years. In my opinion, I believe it was worth waiting this long to get business done. Most people criticized Crabtree, for his greediness and stupidness to wait so long to get a contract, but I believe it was smart for him to do this. One: he got what he wanted as far as money in his contract. Two: this contract will make Crabtree work harder so he can gain respect from his teammates, and also prove himself that he is worth the money. Lastly, his working hard could possibly earn him more money if he makes it to the Pro Bowl. On the other hand, this is risky business, seeing that not all college players live up to their hype in the NFL. But in this case, I believe he will do really well in the NFL, and not be one of those "only good in college" players. In the end, I think he is worth the money, and he will prove to everyone that he is worth the money this season.