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Leagues and Governing Bodies

THE NFL VS. JONES: CAN PATS OWNER KRAFT A COMPROMISE?

     In his Sunday BOSTON GLOBE column and during NBC's pregame
show, Will McDonough reported that Patriots Owner Robert Kraft
"has been asked to play a major role" in the dispute between
Cowboys Owner Jerry Jones and the league over NFL Properties.
Kraft, who believes an out-of-court settlement is possible, lays
out the following as a "partial formula."  Kraft:  "Teams should
be allowed to market themselves in their own areas and then share
it, like we do with gate receipts in the league.  Right now,
that's 60-40.  I'm thinking more 50-50.  If I go out and make $20
million in my market, I keep 10 and throw 10 back in the pot.
Every team will be given a quota to reach in total sales.  If
they don't reach it, they don't get a share of the leaguewide
cut.  Unfortunately, there are some teams in this league that do
nothing in marketing and get the same share from Properties that
everyone else is getting.  That's not fair, and this is what
Jerry is talking about."  Kraft said some new owners -- Jones,
the Eagles' Jeffrey Lurie, the Dolphins' Wayne Huizenga -- are
paying $16-20M per year on loans that older owners do not have to
pay.  Kraft:  "The new owners have to find more ways to make
money to pay for the team.  Local marketing is one way that can
really be helpful."  Kraft said the NFL's lawsuit "slows Jerry
down and makes us all take a harder look at what has been
happening.  Jerry knows that and wants to settle.  That is a big
first step" (BOSTON GLOBE, 9/24; NBC, 9/24).  Fox's James Brown
reported that one owner suggested Jones could be made President
of NFL Properties as a way to bring him "back in the fold" ("Fox
NFL Sunday," 9/24).
     HE'S NOT IN THE FOLD, YET:  During the Cowboys' win
yesterday, Jones took time to question "the competence and
honesty" of NFL Commissioner Paul Tagliabue in an interview with
the FT. WORTH STAR-TELEGRAM.  Jones:  "As a lawyer by trade, he's
either not telling it like it is or not doing his job.  One or
the other. ... Paul may be well-intentioned in his view, but no
more well-intentioned than I am.  His strengths as a commissioner
don't qualify him to answer marketing or financial questions more
than my strengths qualify me.  While he was in court working as a
lawyer, I was making those kind of decisions in my professional
life every day" (Mike Fisher, FT. WORTH STAR-TELEGRAM, 9/25).
     NERVOUS SPONSORS:  ADVERTISING AGE reports negative
publicity "has prompted" American Express to reconsider its deal
with Jones, although company officials continue to deny that a
deal was in the works.  In addition, league sponsors and media
partners are certain that Jones' plan "wouldn't be best for
them."  Jeff Jensen reports sponsors believe "the value of the
rights they own would be diminished if their deals didn't cover
all teams" and that a "decentralized system would allow for
shortcuts to create national programs like using a single team
with national appeal, or just focusing on teams in big markets."
In a worst-case scenario for the league, Coca-Cola Dir of Public
Relations Rob Baskin says, "If several of our competitors are
able to get in, we might just get out altogether" (AD AGE ONLINE,
9/25).
     OPINION & COMMENTARY:  Asked if Jones has the ability to
destroy the NFL's parity, Bill Conlin said,: "I think he
absolutely does and that's why they are going to court."  Mike
Lupica:  "I don't think they're going to be able to stop Jones
any more than they could stop Al Davis from moving his team back
and forth, up and down the coast of California" ("Sports
Reporters," ESPN, 9/24).  Richard Sandomir, in an expansive piece
in the N.Y. TIMES Sunday "Money & Business" section:  "If the
lawsuit goes to trial, the focus will be on the NFL's inner
operations and could examine the antitrust implications of a
partnership whose members cooperate by sharing their gate
receipts, television fees and NFL Properties revenue."  Sandomir
does add that the court could tell the sides to settle before it
imposes any plan, as with free agency (N.Y. TIMES, 9/24).
NEWSDAY's Steve Zipay:  "If Jones agrees to work with Properties
without overturning the apple cart, if current sponsors are given
the opportunity to match deals, this whole episode might be
forgotten before the Super Bowl" (NEWSDAY, 9/22).
     ANOTHER OWNER SPEAKS OUT:  During halftime of last night's
Jaguars-Packers game, TNT's Ernie Johnson talked with Jaguars
CEO/Chair Wayne Weaver, a member of the NFL Properties Exec
Committee.  Weaver:  "There are probably some inequities with
what we do with NFL Properties -- but we've invited Jerry to come
inside and work with the 29 other teams and make it better.  And
that is where Jerry has gone out of bounds, and I think he is
seeing 28 other owners have censured him on this issue."  Asked
whether it is the deals themselves or the nature in which they
were carried out that has angered owners:  "I think it is how he
has gone about doing it.  He is making these unauthorized deals
to raise cash to go out and pay the big signing bonuses.  The one
thing that has made the NFL great is the vision of the owners
back in the early '60s to create the revenue sharing concept, and
it gives you the balance with the small and big markets.  Once
that starts to unravel, we're going to be no different than the
other sports."  Asked if a settlement is near:  "Hopefully,
reasonable business people can come out with reasonable
solutions" ("NFL on TNT," 9/24).

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