Friday, August 5, 2011

The Savior

Sports Illustrated's recent Game Time issue had a nice little shout out to NFL treasurer Joe Siclare. He deserves more. This previously unknown league employee may have saved the 2011 season. He certainly jump started the negotiations when it was desperately needed.

The players and owners were getting nowhere in the negotiations in May. Big surprise there. The court-ordered mediator, U.S. Magistrate Judge Arthur Boylan, addressed league officials. "Look, you've got to come up with some new idea. You guys keep talking past each other instead of to each other."

The players didn't want to hand the owners $1 billion before the revenue was split without detailed, audited financial statements. Everything was stalled. Siclare suggested the league go back and study a common tactic in business. Why not give the workers a larger percentage of the income that requires no owner funding and let the ownership keep a larger cut of the income derived from it's investments? This was the breakthrough. The talks started moving. After weeks of discussions the two sides finally settled on a three pronged deal. Players would get 55% of the league's broadcast revenue, 45% of all revenue from NFL ventures (merchandise, promotions) and 40% of local team revenue (tickets, stadium enhancements). The TV money is a fixed amount over the duration of the contracts. No matter how much the owners invest in advertising, it won't change. The other revenue streams can be increased if the owners invest money, time and energy into it. The players loved getting a larger slice of a set large pie. The owners loved getting a larger slice of the variable pie. They can make that pie grow each year through their own investments into it. Both sides were happy, which is something that rarely (never?) happened the last five months. The revenue split was always considered the most difficult hurdle in this ridiculous mess. All thanks to Joe Siclare. The Flea Flicker and fans everywhere salute you.

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