We could have a major breakthrough regarding the labor negotiations for the National Football League.
On Tuesday evening Judge David Doty ruled in favor of the players’ association saying that the television contracts between the networks and the league violate the collective bargaining agreement. This is a HUGE blow for the owners who will no longer be able to sit back and collect $4 billion in guaranteed revenue whether or not football is played in 2011.
The NFLPA released Doty’s ruling moments ago via
http://www.nflplayers.com/Articles/CBA-News/NFLPA-WINS-TV-CONTRACTS-CASE/
It is hereby ordered that:
1. The court adopts the special master’s “recommendations for relief” paragraphs 1 and 2, see Op. 47, as ther is no objection to these findings and recommendations before the court;
2. The court overrules the special master’s findings as to the NFL’s breach of the SSA relating to its contracts with DirecTV, CBS, FOX, NBC, and ESPN, and holds that the NFL breached the SSA as to those contracts; and
3. The court orders that a hearing be held concerning relief to be granted to the Players arising from the NFL’s breack of the SSA. The hearing shall consider the award of both money damges and equitable relieft, including injunction. District of Minnesota Local Rule 7.1(b)
With team owners and the NFL Players Association approaching the expiration of the current labor agreement Thursday at midnight, the overturning of Judge Stephen Burbank’s initial ruling on television revenue completely changes the landscape of negotiations. It was believed that the owners were more than willing to sit for as long as they needed to in order to break down the NFLPA due to the guarantee of television revenue.
Attorneys from the players’ union argued that the league operated in bad faith, saying its sole purpose in reopening its television negotiations was not to maximize profits in 2009 and 2010, but to build a $4 billion “war chest” to be used in 2011 to gain leverage on the players during a lockout.
Attorneys for the league argued that it already had television contract agreements in place for 2009 and 2010. They also said TV contracts have always had clauses in place in case of a work stoppage, and that the deal for 2011 is no different than any other year. They also point to the fact the NFL has to repay the money with interest in the event there are no games in 2011.
Doty first heard the case last Thursday. The 81-year old Judge has presided over cases involving the NFL, the players’ union and their collective bargaining agreements for the past 19 years. The league has previously alleged that Doty has a pro-union bias and has previously sought to have Doty removed from cases. His tenure as Judge for cases involving the league and the players’ association is set to expire on Thursday.
With the lack of $4 billion in revenue, the owners are likely to be much more urgent in pushing for a new CBA. This is a huge win for the players’ association as we approach the expiration of the current CBA on Thursday at midnight.
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