SportsBusiness Daily — Sports Business Resources — your sports business news and information source. Learn More
Advanced
Home About Us Advertise With Us Marketplace/Classifieds College & University Program Subscribe/Trial My Account

Wednesday
December 10, 2008
Print This Issue


 
MOST VIEWED STORIES
View the top 20 stories
 
Recent Issues
Leagues & Governing Bodies

Goodell Details Severance Packages In E-Mail To NFL Staffers

Goodell Expects To Reduce NFL Staff
By At Least 10-15% Ultimately
NFL Commissioner Roger Goodell laid out some of the details of the severance package that is being offered to 150 staffers over the next 60 days in an e-mail to the NFL's U.S. staff obtained by THE DAILY. The "voluntary separation package" is being offered to employees with at least five years of service, which is around 400 staffers. The e-mail stated, "After determining how many employees accept the voluntary separation program, we will restructure our business and additional positions will likely be eliminated. Overall, we expect ultimately to reduce our staff of 1,100 by at least 10%-15%." Additionally, the league is freezing salaries "at least through 2009." The memo also notes the ‘08 bonus pool “will likely be down meaningfully vs. 2007. There can be no assurance that a bonus will be paid or that any bonus will be equivalent to what has been paid in the past.” Goodell also said the league will "freeze all new hiring with only very limited exceptions." He added ‘09 projected expenses will be reduced by 20% (Terry Lefton, THE DAILY).

PART OF BROADER EFFORT: In N.Y., Judy Battista reports the job cuts are "part of a broader effort to reduce the league's costs," as travel and corporate outings also have "come under the knife, although those cuts are not expected to be noticed by fans." The NFL is being "squeezed by, among other things, sagging licensed merchandising sales, sponsorship renewals and new-media deals." Owners have argued that they are "under pressure because of rising costs, including their debt on stadium construction and renovation, while their revenue remains flat or declines." That is "one reason owners will consider playing two more regular-season games in future seasons, while reducing the preseason, possibly starting in 2011." Battista notes the NFL, with revenue estimated at $6.5B for this year, has until now "experienced nearly unfettered financial success" (N.Y. TIMES, 12/10). NFL Senior VP/PR Greg Aiello: "We're looking at everything with an eye to how we can be more efficient and reduce costs." The AP's Dave Goldberg noted the NFL now joins MLBAM, the NBA and NASCAR teams in announcing layoffs. The NHL "hasn't laid off workers," but a spokesperson yesterday said that the league is "in a hiring freeze" (AP, 12/9). 

CAN HAPPEN TO ANYBODY: Sports Business Group President David Carter said of the job cuts, "If it can happen at the NFL level, imagine the retrenching that is going to have to go on in the secondary sports leagues" (WALL STREET JOURNAL, 12/10). In Sacramento, Bill Bradley writes, "This shouldn't be shocking, but the NFL was perceived as the league that was made of Teflon. The league that could do no wrong. And it seemed to print money while running past other leagues as America's Pastime years ago. But if the NFL is throwing off ballast, then you know the marketplace has changed" (SACRAMENTO BEE, 12/10). In N.Y., Gary Myers writes the victims of the NFL job cuts are "no different than anybody else losing their job in these difficult times, but the big difference is that this is not the struggling automobile industry." This is "not a bank in trouble," as the teams are owned by "extraordinarily wealthy people." The NFL has had a "license to print money for decades," and while the league is "not immune to the economic downturn, Goodell won't be applying for a government bailout anytime soon" (N.Y. DAILY NEWS, 12/10).


Get A Free Trial To SportsBusiness Daily

Reader Comments

To post comments on this article, log in or register for a free trial.

Related Stories By Company Related Stories By Sport
Bears Deny Rift With NBC
November 20, 2009 : SportsBusiness Daily

Gruden Committed To Improving On "MNF"
November 20, 2009 : SportsBusiness Daily

Obama To Appear In PSA With Three NFLers
November 20, 2009 : SportsBusiness Daily

NFL Forms New Player Advisory Forum
November 20, 2009 : SportsBusiness Daily

NFLPA Urges Agents To Have Clients Sign GLA
November 20, 2009 : SportsBusiness Daily

Bills Owner Prepared To Make Big Changes
November 20, 2009 : SportsBusiness Daily

Bears Deny Rift With NBC
November 20, 2009 : SportsBusiness Daily

MSFC Threatens Vikings With Penalties
November 20, 2009 : SportsBusiness Daily

Gruden Committed To Improving On "MNF"
November 20, 2009 : SportsBusiness Daily

Obama To Appear In PSA With Three NFLers
November 20, 2009 : SportsBusiness Daily

ALSO IN THIS SECTION


A Publication of Street & Smith's Sports Group.
Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (REVISED 2009-06-23) and Privacy Policy (REVISED 2009-06-23).

© 2009 Street & Smith's Sports Group and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Street & Smith's Sports Group.