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March 16, 2009
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AFL, Players Reach CBA Agreement, League May Resume Play In 2010

AFL May Reduce Salary Cap,
Team Rosters For '10
As expected, the AFL and the AFLPA announced this morning that they have completed a new CBA, a major step in the shuttered league's restructuring effort. The AFL and the union did not release specifics, but concessions include a reduced salary cap and team roster reductions. The new CBA must be ratified by AFL team owners and players. "This revised deal with the players provides a fundamental and vital foundation upon which we can rebuild the economic model of our League and its teams," said AFL acting Commissioner Ed Policy. The AFL suspended its '09 season and is working to revive the league in '10 with major structural changes including a conversion into a single entity type of league (John Lombardo, SportsBusiness Journal). AFL Exec Committee Vice Chair and Destroyers Owner Jim Renacci said that the announcement on "resuming play could come in the next 30 days." The AP's Jimmy Golen reported the AFL "plans to restructure into a single entity ownership model and work out a deal with ESPN, which invested in the league and owned broadcast and Internet rights." Renacci said that the league "plans to resume play with 18 teams -- the original 16 plus two in cities he wouldn't identify" (AP, 3/15). AFL Soul President Ron Jaworski said, "We had a board meeting in Chicago a couple weeks ago and we ratified the new [CBA]. ... We have a plan in place, we're going to open up next year again. There's a lot at stake. I mean, ESPN is a 10[%] partner with us, we've got an expansion team coming in in Pittsburgh. So we left the meeting with incredible excitement." More Jaworski: "The only question mark is New Orleans right now. They were going to drop, but under the new business model, they're likely to come back. But I don't want to say definitively yet we're gonna have New Orleans next year" (HAMPTONROADS.com, 3/11).

WHAT LIES AHEAD: SPORTSBUSINESS JOURNAL's Lombardo reports the new CBA "likely won't be formally approved until April 1." Meanwhile, Policy "confirmed that the league has issued requests for proposals to outsource the league's marketing, sponsorship and merchandising efforts." However, "no final decision has been made about what league services would be outsourced." Policy: "We have submitted some RFPs to centralize overall business functions of the teams, but no decisions have been made. We may do it bit by bit or in one fell swoop, but none of the RFPs are binding" (SPORTSBUSINESS JOURNAL, 3/16 issue).


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