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Leagues and Governing Bodies

NFL Labor Watch, Day 112: Sides Meet For 16 Hours After Regression On Revenue Split

NFL owners and players Thursday "logged nearly 16 hours before U.S. Magistrate Judge Arthur Boylan, working into the wee hours," according to Albert Breer of NFL.com. NFL Exec VP/Labor & General Counsel Jeff Pash and NFL outside counsel Bob Batterman were the "last participants to leave the building, at just before" 1:00am CT, and the parties were scheduled to "return to the bargaining table" at 8:00am Friday. Meanwhile, the NFLPA at 4:00pm Thursday "held a conference call for all executive committee members and player representatives, painting a grim picture of where talks stood after seven hours negotiating with the league." The "largest issue was the revenue split and the willingness to commit to a true 'all revenue' model." The subject "caused a snag in negotiations between the legal teams Monday and arose again Thursday." The "idea of an 'all revenue' model, which would eliminate cost credits to the owners and limit revenue projections, has bridged some differences, but the issue hasn't been settled yet." Breer writes the revenue split "remains an explosive topic," and is the issue that "can jeopardize these talks" (NFL.com, 7/1).

READING BETWEEN THE LINES: In DC, Mike Maske reports there were "indications Thursday afternoon that progress had slowed as the two sides attempt to reach a deal on how to divide the sport's approximately $9.3 billion in annual revenues." Sources said that players during the conference call were "told that the talks had stalled on the division-of-revenues issue." But other sources "portrayed Thursday's setback as merely part of the normal back-and-forth of negotiations." Sources also said that there was "movement in the negotiations late Thursday" (WASHINGTON POST, 7/1). ESPN's Chris Mortensen cited player sources as saying that owners "have reneged on a simplified formula that would have given players 48 percent of all revenue." The players "believed the two sides had reached an understanding" on the formula, but sources said that owners "reintroduced their previous formula by asking for $400 million to $500 million in expenses as credit off the top" (ESPN.com, 6/30).

REASONS FOR THE DOWNTURN:  In N.Y., Bart Hubbuch writes the talks "hit a serious speed bump" Thursday in Minneapolis "after a rough day of negotiations between the owners and players on the lockout's overriding issue -- the splitting of revenue." NFLPA Exec Dir DeMaurice Smith "appears to be having a difficult time selling to his members a large reduction by percentage -- not necessarily in actual long-term dollars -- in the total annual revenue split by the two sides." The players also are "starting to rebel against the owners' proposed crackdown on rookie salaries, with Smith telling some players earlier this week that the union would not agree to it." Meanwhile, Hubbuch writes it is "likely no coincidence that the talks took a turn for the worse on the same day that the Cowboys' Jerry Jones -- a noted ownership hardliner -- was invited back into the room along with several of his counterparts and players" (N.Y. POST, 7/1). YAHOO SPORTS' Michael Silver writes it is "clear that labor peace ... won't be achieved anywhere close to as seamlessly as numerous reports in recent weeks have suggested." Silver: "Not only is the very definition of total revenue being debated, but each side also believes the other has tried to manipulate the negotiation process in its favor, and any semblance of trust has all but disappeared." A players source Thursday said, "It's just bizarre right now. Two weeks ago, I was optimistic. I didn't realize that we weren't even close to close. It's disheartening." Individuals on the players' negotiating team are "convinced that owners have played 'bait-and-switch' games with them." The players view NFL Management Council Council Senior VP/Labor Relations Peter Ruocco "as a divisive force who has played games with the revenue numbers in recent days," while the owners "continue to regard NFLPA attorneys Jeffrey Kessler and James Quinn as divisive forces" (SPORTS.YAHOO.com, 7/1).

FURTHER DELAY OF GAME
: In N.Y., Judy Battista cites three sources as saying that "although a resolution remained possible within the next 10 days, it was more likely that negotiations would drag on past that time, with a better chance for a settlement coming the week of July 10." The NFL "had hoped to have at least an agreement in principle in place around the Fourth of July," but a source said that "little progress on the critical issues that divide the sides had been made earlier this week." A source said that the sides were "close enough to complete a deal within 72 hours with intense effort," but added that "dynamics among the parties ... could stall a deal" (N.Y. TIMES, 7/1). CBSSPORTS.com's Mike Freeman wrote, "The NFL will deny this, but I believe it is the owners who are destroying this round of talks, even as the two sides are extremely close." Sources said that the owners are "playing mind games with the players: getting their optimism up and then down hoping the players cave out of frustration." Thursday was a "bad day." Freeman: "That doesn't mean a good day won't soon come but this was not great. I get the feeling despite dealing with owner games in the past, this day caught the players by surprise" (CBSSPORTS.com, 6/30). Bengals WR Chad Ochocinco Thursday said that he "isn't optimistic the lockout will end in time for the 2011 NFL season to start when scheduled." Ochocinco: "I don't think it's starting on time ... no matter what you are reading. No way" (AP, 6/30).

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