The N.F.L. may lock out their players next month. According to today's Wall Street Journal, the league showed 9billion in revenues last year. There is no metric that indicates that they are going to show profits that are smaller than that next year.
Thursday, February 17, 2011
The problem appears to be that they have run out of viable streams for new revenue. Financial expansion over the last decade was fueled by satellite contracts, expanded online merchandising, and taking tax payer money to build stadiums so they can exponentially raise the price of tickets. These means have all flat-lined. The owners don't think they can raise ticket prices any more than they already have and furthermore, they don't see any new streams of revenue on the horizon. Therefore, not being content with maintaining a profit of 9billion a year, they want to squeeze their workforce.
When Baseball and Hockey had labor disputes over the last several decades, they were leagues trapped in unsustainable and failing business models in which ownership, facing insane salary increases, was on a path to destruction. The NFL, with its salary cap has worked all of that out. Again, the owners made 9billion dollars last year, but that is not enough, and that is the problem.
The players have the weakest union of any the major sports. Is this a classic case of union busting?
Poor and middle class laborers in this United States have dealt with such mercantile practices for over a century. This situation is the first I know of whereby the super rich are about to eat the rich. What a perfect example of the systemic upward flow of capital (AKA Rick Scottonomics). If this lockout goes through, I urge everyone to forever boycott the NFL. Instead, watch college football, were you can see exploited young minorities making rich dudes tons of money while they get paid peanuts under the table.
Posted by Kup at 2/17/2011 06:44:00 AM