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Sources: NFL Would Not Use Media Fees Until Lockout Season Two
Published February 3, 2011
The NFL declined to comment for this story, but last month the league’s Exec VP/Business Operations Eric Grubman told reporters, “There are a lot of risks we account for, and to prepare for them, we line up sources of capital. (The TV money) is only one. We have other sources of capital that we lined up to account for any risk that we can think of that might face the league.”
The union has aggressively challenged the league’s control of the money, charging that the NFL negotiated below-market rates for the broadcast deals in exchange for a promise that the money would flow whether games are played or not. The league is required to maximize revenue under the CBA. Underlying the charge, of course, is that the money is critical for keeping the owners afloat during a labor disturbance.
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