National Football League

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Chapter 7

• National Football League

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Chapter 7

• Reserve Clause History
• NFL players subject to Reserve Clause

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• Radovich v. NFL
• Supreme Court 1957
• Sherman Act does apply to professional football

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• Management Response to Radovich Ruling
• Rozelle Rule
• High penalties for taking free agents
• Commissioners discretion

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• Mackey v. NFL, 1976
• Court holds Rozelle Rule violates Anti-TrustRule
  of Reason
• Court said labor exemption did not apply because
  lack of good-faith bargaining.

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• After Mackey, Management creates Right of First
  Refusal
• Penalty determined by objective formula
• Mackey victory produces little results in the
  form of free agency

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• 1982, players strikeultimate labor weapon for
  players
• Strike lasts fifty-seven days
• Players gain very littlelose a lot
• Strike High cost for player due to short careers

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• 1987 Strike
• Replacement players
• League makes money
• Union loses strength

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• Duration of nonstatutory exemption
• Powell v. NFL decisions
• Powell exemption applies as long as bargaining
  relationship exists.

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• Players decertify union
• Anti-trust lawsuits bring about 1993 CBA
• Huge victory for players

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• Brown v. Pro-football, 1991.
• Supreme Court says non-statutory exemption to
  antitrust applies as long as a labor relationship
  exists.
• Big victory for Management
• No antitrust action unless union decertified

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• 1993 Collective Bargaining Agreement
• Free Agency finally achieved

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• Exclusive rights free agent. Less than 3 seasons
• Restrictive free agent. Accrued 3 but less than 4
  seasons in a capped year. Qualifying offers
• Unrestricted free agent
• Franchise player. Average top 5 salary for that
  position
• Transition player. Average top 10 salary for that
  position

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• Salary Caps
• Cap avoidance

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• Entering player pool
• Rookie salary caps

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• Minimum player salary
• Minimum team salary

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• Renegotiation of contracts
• Fairnessplayer/team salary

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• CBA termrepeatedly extended
• 2008 NFL opt outshorten term
• Negotiate over sharing of revenue, cap, bonus
  recovery

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• Revenue sharing

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• Standard player contracts
• Terminate at any timeno further salary
  obligation

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• College draft
• Age/Year rules
• Clarrett v. NFL

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• NFL Europe

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• Player Conduct Policy
• Punish player before court resolution

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• CBA term through 2013
• CBA allow opt-out
• Mgt. exercise opt-out in May, 2008

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• Reasons for Opt-Out
• of revenue to salaries too high
• High cost of rookie pool
• Problems with recovery of bonus when the player
  breaches his contractVick case

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• Consequences of Opt-Out
• 2010 season not capped
• No capgood for players
• Union say Mgt. never get cap back
• Free agency require 6 years in League during no
  cap year

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• Watch for negotiations
• Strike or lock out in 2011 is unlikely