The History Of Sports Lockouts

The History of. SPORTS LOCKOUTS He Said What? Can you match the quote the current league commissioner? MLB (Bud Selig), NFL (Roger GoodellI), NBA (David Stern), NHL (Gary Bettman) 2."Our focus is on trying to get an agreement done" 1. "I don't feel optimistic about the players' willingness to engage in a serious way- from this session and 3. I don't think any sports league does more than we do but many before" maybe there's more, as we focus on it, that we need to focus on. I know it's always hard for people to accept, but sports is a microcosm of society in general." 4. "Nobody on either side can say that this wasn't vetted properly over a long, long period of time. Other than that, I'l handle the internal matters in my own way." 5. "I would say the league is viable as long as you have owners who want to continue funding losses. But it's not on the long term a sustainable business model that we're happy to be supporting. It needs to be reset." 6. "For anybody to suggest two weeks into the season, when we're playing at 93 per cent capacity, that there are trouble spots, I think is looking for a negative story that isn't there, dark cloud hanging over the game. Turns out last year may have 7. "You know, not that I'm not sensitive about it. Last year when we had the congressional hearings on March 17, people said there's a been the greatest year in our history in terms of attendance and everything else" ..All our franchises will be fine." 8. "The owners don't win by having a lockout. Shutting down your business is not good for anybody and it's certainly not good for the players, it's certainly not good for the fans. And inflationary pressure caused by the inflation in that's most important to us." 9. "What will happen with the new system is the player costs will be abated. What happens in each market will be a club-by-club decision. But I do believe the ticket situation, the pricing situation, will be improved and will be more reflective of a healthy business." 10. "In fact, when you talk about revenue sharing, a number of teams have said that if you have a team that is perpetually going to be a recipient, aren't you better offwith the ability to buy them in? Because between the 11."The way you continue to be a successful business is you don't wait for the car to go off the cliff" I just wanna ball, man. revenue sharing and the split of international and the TV money, we could almost buy them in with their own money." 12. "For whatever one wants to say, from 1998 on we've come as a sport a long way. I can only deal with the present and the future." Answers below NBA AND NHL ATTENDANCE 2006-07 - 2010-11" 18,000 17,800 17,600 NHL 17,400 17,200 17,000 NIE 16,800 NFL SALARY CAP (1994-2011) 16,400 $160.0 2006-07 2007-08 S135.7 2008-09 2009-10 2010-11 $1216 $118.7 $114.2 $120.0 $120.0 $129.0 NBA $120.0 S100.0 $52.5762 67571.7575 e0 s5 $415 $80.0 S584 $40.0 Actual 5200 S343710 THE UNITED STATES OFAMER ICA. IN GOD 1 Stern 2 Goodell 3. Bettman 4. Selig 5. Stern 6. Bettman 7. Selig 8. Goodel 9. Bettman 10. Stern 11 Goodell 12. Selig A comparison of league salaries across the four major North American sports - league average = Commissioner I= highest paid player 32.0 $32 $30 $28 $26 2010 Yearly Salaries (in Millions) $24 24.8 $22 $20 $18 18.4 16.1 $16 $14 $12 11.2 $10 10.0 9.53 $8 $6 $4 $2 0.99 NFL MLB NBA NHL League Labour disputes, in the form of lockouts and strikes, have occurred 18 times in professional sports since 1972. As league collective bargaining agreements expire, labour negotiators from both sides reconvene to make changes and improvements to the previous settlements. NBA (2011) - The current NBA lockout is far from resolved. Initially, as the previous CBA was ending, the owners wanted a hard cap, rolled-back salaries, and years taken offcurrent deals. Slowly, the owners softened and encroached upon the hard cap of $45M becoming a flex cap with a target of $62M. Instead of the players giving back a huge portion of their earnings immediately, the giveback would be less upfront, but the players wouldn't share in any growth over the next decade. The summer of 2011 has seen both the NFL and the NBA deal with an expiring CBA; with the NHL and MLB set to renegotiate contracts in December 2011 and September 2012 respectively. It could be a lengthy haul before this lockout is resolved. NHL (2004-05) - The impact of this lockout was disastrous and its repercussions were matched only by that of its 1994 MLB lockout counterpart. The dispute was regarding finances after the CBA expired. The NHL claimed it was losing money and wanted players to accept "cost certainty" with an inflexible salary cap. NFL (2011) - On July 25th, after four months of tense negotiations and the threat of a canceled 2011 football season, the League and NFLPA agreed to terms on a new ten-year collective-bargaining agreement. The players will now receive 47% of the $9 billion revenue that the NFL generates annually. Additionally, a salary cap for team payrolls has been set to $120.4 million per team and $22 million in benefits for each individual It marked the first time a major professional sports league in North America canceled a complete season because of a labor dispute. The lockout started September 16, 2004 and crawled to a halt on July 22, 2005, after both the NHL owners and NHLPA ratified the CBA. player. NBA (1998-99) -This was by far the worst of the league's three lockouts (to date). Lasting from July 1, 1998 to January 20, 1999, the season had to be shorted to 50 games. The main issue was player's salaries. The entire season was nearly lost as the lockout ended literally during the final hour (January 6th). NBA (1995) - The league and NBPA handled the NBA's first lockout without missing any pre-season or regular season games. The dispute over luxury tax lasted from July 1 to September 12. 1980 02 61 19 90 20 00 20 10 MLB (1973) - A year after the first MLB strike, salary arbitration caused the first lockout in baseball. The issues are MLB (1972) - The first of eight work stoppages in baseball history. The strike lasted from April 1 to 12 over pensions and binding arbitration. Eventually the two sides agree on a new CBA. A total of 86 games are lost from the season resolved in Februrary. No games were missed. MLB (1976) - The CBA from 1973 expires leading to another lockout. Free agency and re-entry in the draft are the focal points. Issues are resolved in the off season. No MLB (1980) - Players strike for 8 days. The main concern is free-agent compensation. The strike lasts from April 1-8. Some spring training games are canceled but the regular season begins on time. MLB (1981) - Free-agency negotiations are once again the main topic of discussion. A failure to reach an agreement leads to a player's strike from June 12- July 31. 712 games are missed. Players and owners agree that teams will not be compensated for the loss of free agents and that teams can retain players for 6 years. games were lost. MLB (1990) - Disputes over salary arbitration and salary cap last from Februrary 15- March 18. Owners agree to contribute $55 million to pension fund and again raise minimum salary for players. Training camp was delayed. No regular season games were missed. MLB (1985) - This two day strike in August was the shortest of NFL (1982) - The first NFL strike lasted 7 weeks into the 1992 season. It began September 12 and ran through to November 16. The NFLPA wanting to raise the percentage of gross revenues to 55%. A 9 game regular season was played followed by a "Super Bowl tournament". The Washington Redskins win. :of the MLB labor disputes. The result was an increase in minimum salary for players and owners agreeing to contribute $33 million to the pension fund during the next three seasons. MLB (1994-95) - Arguably baseball's darkest days. This strike hit baseball the hardest. Both sides NHL (1992) - The NHL's first strike lasted ten days from April 1- April 10. The players earned an increase in their playoff bonuses, increased control over the licensing of their likenesses and changes to the free agency system. failed to reach agreements on salary caps and revenue sharing. The strike lasted from August 12,1994 to Ma the regular season was canceled as well as the postseason. 1994 would go on to be the first year that the World Series wasn't played since 1904. There were 938 missed games. 31, 1995. This remainder of NBA (1996) - By far the shortest labor dispute in the history of these four major sports. The point of contention was a disagreement on television revenues. On July 1st, after a couple of hours negotiating new terms, the sides reached an agreement NFL (1987) - This was the infamous "replacements" strike. While the strike lasted close to a month, only one week of regular season football was canceled. With the union threathening action, the owners countered with replacement players on standby. Within three weeks the NFLPA agreed to return to action on October 15 without a collective bargaining agreement. Eventually, the players prevaled in their antitrust case. Washington wins the Superbowl. and the lockout was lifted. NHL (1994-95) - The owners and NHLPA battled over the implementation of a salary cap causing a lockout from October 1, 1994 - January 11,1995. The season lost 468 games including the All-Star Game. Teams hit the ice for a shortened 48 game regular season. NBA 4 labor disputes MLB 8 labor disputes NFL 3 labor disputes *When the NFL merged with the AFL in 1968, the NFLPA voted to go on strike and subsequently the first NFL CBA was reached. NHL 3 labor disputes In 1974 the NFL also had a 44 day strike over players demanding guaranteed salaries. No games were missed. Who's who? Player Unions& League Commissioners Players' Union - The National Basketball Players Association (NBPA) Current President - Derek Fisher: November 19, 2006- Present - The NBPA is the labor union of players in pro basket- ball's National Basketball Association. - It was founded in 1954 It's the oldest trade union of the four major North American professional sports leagues. - Established the first "Salary Cap" in professional sports in 1983 NBA Current Situation Previous Lockouts & Strikes - The previous collective bargaining agreement from July 2005 has expired - The agreement expired at 12:01 EST on July 1, 2011, following completion of the 2010-11 NBA season - The resulting lockout has yet to be resolved 1995 Lockout (Jul. 1-Sep. 12) 1996 Lockout (Jul. 1) 1998-99 Lockout (Jul. 1, 98- Jan. 20, 99) Current Commissioner: David Stern - Became Commissioner in 1984 succeeding Larry O'Brien. - League has built 28 new arenas (10 since 1999) - Relocation of 5 NBA franchises (Clippers, Kings. Grizzlies. Hornets and Sonics) -7 new NBA teams (Hornets. Timberwolves, Heat, Magic. Grizzlies, Raptors, and Bobcats) - Has failed to avoid Several NBA Lockouts Players' Union - The National Football League Players Association (NFLPA) NFL - Founded in 1956 - Made first true contribution by introducing a collective bargaining agreement in 1968. - The union was formally decertified after losing a strike in 1987 - It converting into a professional association in order to pursue antitrust litigation aimed toward earning free agency for its members. - It reformed as a union and resumed collective bargaining with the league in 1993. - On July 25th, 2011 the NFL and NFLPA came to an agreement on a new 10 year CBA thus rendering the recertification of the union Previous Lockouts & Strikes 1982 Strike (Sep. 20- Nov 16) 1987 Strike (Sep. 15-Oct. 15) 2011 Lockout (Mar. 11- July 25) Current Situation - On March 11, 2011, negotiations for a new collective bargaining agreement between the NFL and the NFLPA failed - The labor dispute caused the NFLPA to decertify. -In response, the NFLPA (headed by Tom Brady) filed an anti-trust suit against the league in U.S. district court. - The two sides agreed upon a settlement - Players signed union authorization cards approving the NFLPA to act as their exclusive collective bargaining representative. -The NFL officially recognized the NFLPA's status as the players' collective bargaining representative on July 30, 2011. The NFL and NFLPA proceeded to negotiate terms for a new CBA, and an agreement became effective after ratification by the play- ers August 4, 2011. The new CBA runs through 2021. We are working hard to secure an agreement with the union that is fair and forward- thinking to ensure our game is Sound and strong well into the future Current Commissioner: Roger Goodell - Succeeded the retired Paul Tagliabue on August 8, 2006 - Negotiated league's current collective bargaining agreement with NFLPA Extensive role in league expansion, realignment, and stadium development - Launch of the NFL Network and securing new television agreements Players' Union NHL - The National Hockey League Players Association (NHLPA) - The first NHLPA was formed in 1957 by hockey players Ted Lindsay of the Detroit Red Wings and Doug Harvey of the Montreal Canadiens after the leaque had refused to release pension plan financial information. Alan Eagleson era (1967-1991) Bob Goodenow era (1991-2005) Ted Saskin era (2005-2007) Paul Kelly era (2007-2009) Donald Fehr era (2010-present) T - In the Bettman era, in 1994, the owners insisted on a salary cap, changes to free agency and arbitration in the hopes of limiting escalating salaries, the union instead proposed a luxury tax system. Previous Lockouts & Strikes 1992 Strike (Apr. 1-10) - The owners failed to achieve a full salary cap - The union agreed to a cap on rookie contracts; changes to arbitration and restrictive rules for free agency that would not grant a player unrestricted free agency until he turned 31 1994-95 Lockout (Oct. 1, 94- Jan. 11, 95) 2004-05 Lockout (Sep. 16, 04 - Jul. 22, 05) Current Situation - The key aspect of the new collective bargaining agreement is an overall salary cap for all NHL teams, tied to league revenues. "The cynics were predicting that by taking a year off, which obviously is something nobody wanted to do, we would have destroyed our following and our fans would never come back," - The agreement also phases in a reduced age for free agency, which will eventually give players unrestricted rights to negotiate with any team at age 27 or after 7 years of play in the NHL, whichever comes first. - The current CBA is set to expire on September 15, 2012. - The 2011-12 NHL season will be the final year of the current collective bargaining agreement as the NHL Players' Association will no longer have the option to extend the current CBA. Current Commisioner: Gary Bettman - Commisioner since February 1, 1993- -Former senior vice-president and general counsel to the National Basketball Association (NBA) - In his tenure the NHL's revenue has grown from $400 million when he was hired to over $2.2 billion in 2006-07. - Expanded the league to 30 teams adding new franchises in 6 American cities. Previous Lockouts & strikes Players' Union 1972 Strike (Apr. 1-13) - The Major League Baseball Players Association (MLBPA) 1973 Lockout (Feb. 8- 25) - The MLBPA was created in 1953 -Marvin Miller served as Executive Director from 1966 to 1983. 1976 Lockout (Mar. 1-17) -In 1968, Miller negotiated the first collective bargaining agree- ment (CBA) with the team owners - Widely considered one of the strongest unions in the country - The only major professional sports league in the U.S. that does not have a salary cap - Donald Fehr joined the MLBPA as general counsel in 1977. - He was named executive director in 1985 - On June 22, 2009, Fehr announced he will step down and after a transition period and will be replaced by Michael Weiner. 1980 Strike (Apr. 1-8) 1981 Strike (Jun. 12-Aug. 9) 1985 Strike (Aug. 6-7) 1990 Lockout (Feb. 15- Mar. 18) 1994-95 Strike (Aug. 12, 94 - Apr. 2, 95) Current Situation - Several rounds of bargaining occurred between 1972 and 1995 - The most recent CBA, which extends through the 2011 season, was settled more than a month before the previous agreement expired. It was Fehr's final contract negotiation as executive director and it ensured 16 years of labor peace in baseball Talks have started They're ongoing and they're constructive. - MLB institutes a Luxury Tax instead of a salary cap. - Teams whose total payroll exceeds a certain figure (determined annually) are taxed on the excess amount. - The tax is paid to the league, which then puts the money into its industry-growth fund. There will be issues and differences of opinion. They have a job to do; we have a job to do. But it's a far cry from what labor negotiations were in the '70s, '80s and '90s, How Luxury Tax money is delegated - The first $5m is held in reserve, to pay for possible luxury tax refunds. for that matter. If no refunds are to be issued: this money is then earmarked for the Industry Growth Fund (IGF). - 50% of the remaining money is used to fund player benefits 25% is used to fund baseball programs in developing Countries with no high-school baseball, - 25% is put into the Industry Growth Fund (IGF) Current Commisioner: Allan Huber "Bud" Selig -Acting commissioner since 1992 - Official commissioner since 1998. - Introduced revenue sharing. - His tenure has included 400% increase in the revenue of MLB and annual record breaking attendance. 1972 - (13 days) 1973-(12 days) 1976 - (17 days) 1980 - (7 days) 1981 1994-95 (50 days) (232 days) 1990 1985 - (2 days) (32 days) Length of lockout measured in days: 365 total (MLB) * Total regular season MLB games not played due to lockout: 1719 Top Row =Total number of locked out days in the sports history Bottom Row = Total number of missed regular season days Leagues 365 MLB -246 279 NBA -105 424 NHL -311 207 NFL 64 T08 Total days 100 200 300 400 * Some statistics are based on scheduling which never existed (ie 2004 NHL regular season). Estimations - were used in these cases = no winner Winners and Losers Which side gained the most from the labor disputes? Owners Players 1972 1973 1976 1980 1981 1985 1990 1994-95 1982 1987 2011 NBA 1995 1996 1998-99 2011 NHL 1992 1994-95 2004-05 Sources used http://www.businessinsider.com/ http://bleacherreport.com/ http://www.businessinsider.com http://www.cnbc.com http://www.time.com silver oak auekua agoy Bettman Alex Ovechkin