How Much Is The NFL Earning? Players and Owners Have Different Ideas

Sports Business

Dec. 17 2010 - 4:36 pm | 196 views | 0 recommendations |

As the saying goes, the devil is in the details. Such is the case in the on-going battle between NFL’s owners and players. On March 3, the current collective bargaining agreement between the players and the league expires, and to date, there is still considerable concern that a lockout by the owners is at hand.

Driven by a battle in the media as to just how much in revenues the players get each year through the current CBA, George Atallah, the NFLPA’s Assistant Executive Director for External Affairs sent a letter to the media. The point of the letter? Understand what is Total Revenues and what All Revenues are about. After all, the difference is about what the revenue split for the players are. The owners are seeking a 18 percent rollback on the percentage of revenues the players get.

What’s the difference between Total Revenues and All Revenues? As Atallah correctly defines it, “ ALL revenue refers to all the revenues generated by the NFL and its operations. “Total Revenue” is a CBA term that refers to all of the monies that are left after the owners receive an expense credit. Atallah claims that the owners have received credits in excess of $1 billion in each of the past two years.

So that players receive 50 percent of All Revenues – the revenues after the expense credit to the owners. Below are the percentage of Total Revenues the players get after the owners take their cut – all of which are below 60 percent. The NFLPA claims that the below numbers were jointly reached and audited by PriceWaterhouseCoopers:

Players’ Percentage of All Revenues since 2000:

2000-56.5%

2001-52.6%

2002-51.8%

2003-50.5%

2004-52.3%

2005-51.1%

2006-52.7%

2007-51.8%

2008-51.0%

2009-50.6%

Players’ Percentage of “Total Revenue” since 2000:

2000-61.7%

2001-57.1%

2002-56.1%

2003-54.3%

2004-57.0%

2005-55.1%

2006-58.4%

2007-58.0%

2008-57.7%

2009–57.1%

The following is ARTICLE XXIV GUARANTEED LEAGUE-WIDE SALARY, SALARY CAP, & MINIMUM TEAM SALARY from the 2006 CBA (PDF)

Follow Maury Brown on Twitter @BizBallMaury

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