Owners need to switch back

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Owners need to switch back

According to ProFootballTalk.com, one of the issue amongst  National Football League owners that is causing division amongst owners is revenue sharing.  The answer to that problem is switching back to designated gross revenue.

This whole mess with revenue sharing was created when owners in the last round of Collective Bargaining Negotiations hastily accepted the National Football League Players Association proposal.  The reason was to “not kill the golden goose.”

Designated Gross Revenue was the catalyst that kept the peace within the NFL.  It allowed all the people involved in both parties to be satisfied.

For owners it kept labor costs down, which gave small market owners a substantial profit margin.  That in turn allowed them to be competitive in acquiring unrestricted free agents.  Also, it allowed owners to keep whatever they made through the sales of luxury suites.

Owners don’t mind sharing the television contract, because of the fact that it is a deal that is done with television networks as one collective body.  As for the luxury suites owners are reluctant to share with each other, because several big market owners feel the small markets aren’t doing enough to.

The answer to all this is switching back to DGR with a certain percentage of each team’s luxury suites sales going to players salaries.

In the end, as long as the NFLPA still gets a percentage of luxury suites sales they should take the owners proposal to keep football around in 2011.

Good night and good luck.

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