This CBA fixes flaws in '06 deal (the NFL deal detail)

[Omaha Steve]

http://www.packers.com/news-and-events/article_ketchman/article-1/This-CBA-fixes-flaws-in-06-deal/0e2dc0ec-2aa6-431f-aabc-c60677b7b8f4?campaign=e20110722

Vic Ketchman, packers.com editor

The whole problem centered on a model that didn’t work. That’s what the owners were saying when the lockout began, that the TFR (Total Football Revenue) model for distributing revenue to the players and to which the owners agreed in 2006, and from which they opted out just two years later, was a failed business model.



In some cases, it only took a few months after agreeing to the ’06 CBA for owners to know they had made a major mistake. In effect, what they had done is to have agreed to pay 100 percent of the costs with 40 percent of the gross.

This lockout, which is nearing five months in length, is all about undoing what was hurriedly and ill-advisedly put into place five years ago. Retracing their steps, however, was not completely possible, so the owners did the next-best thing: They addressed the issue of those costs.

Here’s the plan for doing that, a plan that is the result of long and exhaustive negotiations between the two sides. As Packers President Mark Murphy told reporters in a conference call on Thursday, “We’ve put our pens down.” Murphy, a former player, was expressing satisfaction for the performance of both sides.

* Beginning in 2012, revenue will fall into three categories and it’ll be distributed to the players at three different amounts. Players will receive 55 percent of the national TV revenue, 45 percent of NFL ventures (NFL Network, licensing, etc.) revenue, and 40 percent of local team revenue.

That final category, “local team revenue,” was the sticking point and possibly the lynchpin in this CBA proposal. If this gets done, the 40 percent provision for “local team revenue” might be what made it happen.

FULL story at link.