UPDATE: Problems for the New NFL Labor Deal

Gene Upshaw, the head of the NFL players union, says the league's offer for a new collective bargaining agreement is not even close to what the players are seeking, meaning a deal could still be months away. (Shapiro, "NFL deal not close, head of union says," Wash. Post, 08/19/05). Upshaw has also said that if a deal is not reached by October, it may be difficult to sign a new CBA that avoids the 2007 season being played without a salary cap (as it will under the current agreement). As Upshaw says, as the 2007 season draws nearer, the players will become more enticed by the notion that owners can spend any amount on player salaries.

The sticking point on the new agreement (as always) is money. The two main issues are the calculation of shared revenues and the percentage of these revenues guaranteed to the players. The owners have offered to increase the size of the revenue pie, but cannot agree amongst themselves as to which revenues will be shared. A focus of this debate is local and stadium sponsorship deals. Once this formula is calculated, then an agreement must be reached on the percentage allocated to the players.

History indicates that a deal will be done sooner rather than later. But with the owners fighting amongst themselves, and the issue of guaranteed contracts still lurking in the background (7/28), the NFL is facing its greatest labor struggle in 20 years.

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