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Leagues and Governing Bodies

NFL Ordered To Give Back $120M To Shared Pool With Players Following Union Grievance

The NFL is being required to "return what its union calculates" is more than $100M to the shared revenue pool between the league and its players, according to Matthew Futterman of the WALL STREET JOURNAL. Arbitrator Stephen Burbank handed down the ruling last week, finding that the NFL owners "had mischaracterized" what NFLPA officials say is about $120M of "ticket revenue during the past three years." NFLPA officials said that the owners created "an exemption that had the effect of keeping about" $50M in salary away from players. The league "would not confirm the figure." But NFL VP/Communications Brian McCarthy in an email wrote the ruling was due to a "technical accounting issue under the CBA involving the funding of stadium construction and renovation projects." Futterman notes the ruling is the "latest in a series of legal victories for the NFLPA over the league." This dispute stemmed from "provisions of the collective bargaining agreement that allow NFL teams to exclude certain money from the pool that determines its players’ share of revenues." Players receive 40% of "local revenues, which mainly come from tickets sales, 45% of sponsorship money, revenues from the post-season and NFL Ventures, such as NFL.com and the NFL Network, and 55% of the revenues from media deals." McCarthy noted that the "ruling would not affect the league's ability to support new stadium projects" (WALL STREET JOURNAL, 2/23).

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