Sides make progress on revenue split with N.Y. talks on tap

Topdawg13 · Jul 2, 2011

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At 4 p.m. Thursday, the NFLPA conducted a conference call with its player reps and executive committee members that painted a grim picture as the labor situation made a turn for the worse.

Then everything changed.

As it turned out, the call, made after seven hours of negotiations at a downtown Minneapolis law firm, came less than halfway through the day's talks. And after those talks finished just before 1 a.m. CT and another set was staged on Friday morning, a different story was emerging.

The owners and players still have much work to do, but major progress was made to fix the revenue split, the overriding issue in the labor battle, on Thursday night and Friday morning. One source said that if smaller pieces connected to it don't shift the numbers too much, it "might not even be a stumbling block going forward."

In addition, the parties took strides to work out disagreements over how to define "all revenue" in the model they plan to use, and they also discarded some terms in the deal the other side found unacceptable.

U.S. Magistrate Judge Arthur Boylan proved a pivotal figure when things were at their darkest Thursday. Boylan was able to rein the parties in, narrow their focus to what was important on the revenue split, and forge a very productive evening.

This was after issues that arose last week in Massachusetts (over the rookie salary system) and Monday (over what the players perceived as a deception play by owners on the revenue system) resurfaced and again proved explosive, with players and owners re-entering the room after legal teams handled the earlier part of the week.

Things went so well Thursday that Boylan implored the sides to keep going past 1 a.m. The players and owners convinced the judge -- who ran court-ordered mediation in April and May, but has no binding power in these talks -- that they were spent, but the positive momentum continued into Friday morning.

And realistic hope remains that the league will be able to stage the preseason in its natural form, without the cancellation of any games, which would save hundreds of millions of dollars. Internal deadlines to have a deal done in order to save the preseason sit around July 15, and part of the ratcheted-up sense of urgency is the acknowledgement by both sides that a settlement will be exponentially tougher to reach if significant revenue is subtracted from the equation.

The parties have spent the past four weeks largely discussing the revenue split. And it's not just the revenue now, but also how to account for the league's future growth, particularly when the 2014 television deals are done, in the players' take. The idea of an "all revenue" model, which would largely eliminate cost credits to the owners and limit revenue projections, has bridged differences over the course of the discussions.

As for the rookie salary system, the numbers aren't the only issue. Finding a way to replace the market effect those contracts have on veterans as well as getting high draft picks to free agency quicker are among the players' concerns. As it stands, six-year contracts are allowed for high first-round picks making big money.
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