NFL Commissioner Roger Goodell took the problem straight to the cheap jerseys
public last week when he penned a letter to NFL fans and season ticket holders calling for equity among black friday cheap jerseys
players and owners (players currently receive almost 60% of revenue), an 18 game regular season (instead of 16 games) and a rookie salary cap, among other things.
Whether the Goodell letter is a stroke of genius to sway public sentiment after all, the players and unions don't have access to the league's email database seattle seahawks jerseys
or a cheap tactic to sow resentment between fans and players, one thing is clear: "If [a strike] goes on through the summer and there's no football come September, well, there are very few winners here and a lot of losers," said David Carter, principal of the Los Angeles based Sports Business Group and the executive director of the University of Southern California Sports Business Institute.
Fox, CBS, NBC, ESPN and DirecTV pay a combined $4 billion annually in TV rights deals with the NFL deals that will stay in place even if there's no 2011 season, a bone of contention for the Players Association, which filed a grievance saying the money should be put in escrow instead of in the NFL's war chest. The networks get back $3 billion a year in ad revenue on NFL games. While some of that would be placed in other programming, it will be hard for anything to measure up to the NFL, which is enjoying a ratings increase.
"Where every other content is getting fractionalized, the NFL is thriving," said Brad Adgate, senior VP research of Horizon Media. "I just don't know if you can replace that." He said ESPN will be hit hardest because so much fourth quarter programming, from pregame to 'SportsCenter,' revolves around the sport.
"We continue to monitor the situation. We're hopeful both sides will find a resolution and there will be no interruption of play," said a spokesman for ESPN, which despite the possible labor crisis is seeking, according to a published report, a nine or 10 year deal extension with the NFL that would jump the annual rights fee from $1.1 billion to $1.8 billion or $1.9 billion. Its current deal expires in 2013. Sponsors are proceeding with cautious optimism.
"We continue to be very optimistic that the parties will find a solution," said Anheuser Busch InBev CEO Cheap World Cup Jerseys | Wholesale Jerseys Store
Carlos Brito on a recent earnings call. Mr. Brito's Bud Light beer is paying $1.2 billion over six years to be the NFL's official beer sponsor starting with the 2011 season. unit, Anheuser Busch, declined to say exactly how it would reallocate the money. "We would reinvest those dollars to reach Bud Light consumers in other relevant ways," said Gregg Billmeyer, VP Premium Lights for Anheuser Busch.
But that's easier than it sounds, because there's nothing like sports and the NFL. According to Horizon Media, 11 of the 13 TV programs that averaged 30 million viewers or more were live sports or sports related programming.
Las Vegas sports books are looking at an $850 million loss, said Wynn Las Vegas Hotel sports book and race director Johnny Avello.
"And that's nothing in the grand scheme of things," Mr. Avello said. "You start counting up the online betting, betting in other countries and, of course, illegal sports books, and it could be as much as $500 billion worldwide wagered on pro football. We might as well just go and spend more time at church on Sundays."
Sports bars will certainly feel the brunt of a lockout.
"It would be a killer, straight up. It would probably put us out of business," said Mike Pressley, manager of the Cheyenne Grill and Sports Bar in Atlanta. Mr. Pressley noted that football Sundays account for 20% of his weekly sales and is 35% more than the next closest day.
Even the NFL itself stands to lose almost $1 billion.
"We will lose economic opportunities, we will lose revenue," said Jeff Pash, the NFL's general counsel, exec VP labor and chief negotiator said.
THE NFL: $1 billion in losses at stake if season tickets aren't renewed and preseason training camps and games are canceled, not to mention some brand equity.