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SBD/Issue 119/Leagues & Governing Bodies

Paul Tagliabue Shrugs Off Reports Of Retirement

Tagliabue Says He Has Not
Thought About Retirement
Amid reports last week that he is considering retirement, NFL Commissioner Paul Tagliabue on Friday said, “It is speculation, because I haven’t really focused on the future. A couple years ago when I extended my contract we did have some discussion –- myself and a half-a-dozen owners who were on my contract committee. ... We did talk about a timeline, but most of the focus was on trying to ensure that there was a well-structured succession plan in process” (“NFL Total Access,” NFL Network, 3/10). Tagliabue said retirement is “not on my radar. ... Now that we have [the CBA] done, maybe I can figure out what the future holds, but I haven’t given it any thought.” Tagliabue “dismissed ESPN reports that his retirement is imminent.” Tagliabue: “That (story) was not about me. It’s about someone leaking an element of my contract (that he could stay on as a highly paid consultant until a new commissioner was named)” (BOSTON GLOBE, 3/12). Texans Owner Bob McNair said of Tagliabue, “I think it’s ‘tirement,’ not retirement. I think he’s tired right now, as we all are. He’s worn out. We’ve been working on this (CBA), really, for two years.” McNair added, “It would be easier for him to go ahead and complete some of these other tasks at this point in time than it would be for someone else new coming in. So I think there are some important things yet to be done” (Newark STAR-LEDGER, 3/11).

REAX: In Detroit, Mike O’Hara wrote, “The timing is right for Tagliabue to step down. There are no conflicts looming for the next several years” (DETROIT NEWS, 3/12). ESPN’s Michael Wilbon said Tagliabue has “carried the league to a place where it is so profitable it is the preeminent league. What more can he do?” (“PTI,” ESPN, 3/10). ESPN’s Woody Paige said Tagliabue has “established his legacy. He’s a surefire first-ballot Hall of Famer” (“Around The Horn,” ESPN, 3/10). But in Buffalo, Bob Dicesare wrote retiring now “would be a shrewd bit of timing” for Tagliabue. Dicesare: “Better to leave while the applause still resonates, labor peace having been achieved, than to stick around while the deal plays out and the debilitating ramifications are exposed for all to see” (BUFFALO NEWS, 3/12). Tagliabue said, “Legacies are for other people. That’s often said. It’s trite, but my legacy, I guess, is a basketball player who maybe did some good things in football” (“NFL Total Access,” NFL Network, 3/10).

REVENUE SHARING: In Boston, Ron Borges noted of the four revenue-sharing plans discussed during CBA negotiations, the Patriots-Jets plan was the “only one that included all three elements essential to a deal: 1. a funding mechanism for expanded revenue sharing; 2. a value on how much was needed for it to work; and 3. a distribution plan.” Many involved in the talks confirmed that the “key was that [Patriots Vice Chair Jonathan] Kraft suggested not only that his team was willing to put in $3[M] or more of the Patriots’ money a year, but that it would forgo its share of new revenues the league had been generating annually, thus increasing the revenue-sharing pie without taking a slice from the present income of high-revenue clubs.” Cowboys Owner Jerry Jones said, “We took things from the future and basically shared that. We agreed to some things we’re not sure how much will be involved financially. That was a brilliant stroke” (BOSTON GLOBE, 3/12). SPORTSBUSINESS JOURNAL’s Daniel Kaplan notes the sources of revenue from which the top 15 teams will contribute are “still coming together.” One source said that initially the NFL “will have to borrow money. But to do that, the league must designate certain revenue as collateral to secure the debt.” Jones talked about the “possibility of digital revenue funding the obligation” in the later years (SBJ, 3/13 issue). On Long Island, Bob Glauber noted as part of the deal, lower-revenue teams had to “make a good-faith effort to generate local revenues themselves” — otherwise they would not be entitled to the money. Details are “still being worked out about what those lower-revenue teams have to do, but an example would be a team that’s in a new stadium couldn’t share local revenues for at least 10 years” (NEWSDAY, 3/11).

McNair Holding Line On Texans’
Ticket Prices Despite Rising Costs
READY TO KEEP SPENDING: In Houston, John McClain reported the Texans will not increase ticket prices this year and “will continue to spend over the salary cap” even though the new CBA will cut into the team’s profits. McNair: “All of our costs go up, but we can’t automatically raise ticket prices. We’ve had some minor adjustments, but we’ve pretty much held the line. If we don’t offer the value, we’re not going to raise the prices” (HOUSTON CHRONICLE, 3/11). In Chicago, Don Pierson noted the Bears are one of the 15 high-revenue teams that will share up to $3M annually with the bottom 17 clubs. But Bears Owner Mike McCaskey “doesn’t think the new CBA will limit the Bears’ ability to be competitive.” McCaskey: “We’re going to continue doing business as we always have. ... I said it was important for the clubs that were able to build new stadiums to understand they had increased the costs for other clubs in the league and it was important to share revenue to address that” (CHICAGO TRIBUNE, 3/12). Browns Owner Randy Lerner said the new CBA is “pretty neutral to the Browns if the Browns are managed well because we’re sitting right there in the middle by most measurements. It’s up to the Browns under this deal to manage carefully and concentrate on football” (AKRON BEACON JOURNAL, 3/12).

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