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ESPN’s new $20 billion NFL deal could give the players more firepower as they push for a greater share of the revenue pie — but at the same time make the rancorous labor talks with management even more bitter, experts said.
“Frankly I think you’ll probably hear a little more strident rhetoric from [NFL Players Association chief] DeMorris Smith about how well the league is doing and how it’s so prosperous,” sports economist Andrew Zimbalist said.
ESPN, which airs the profitable “Monday Night Football” franchise, is close to finalizing a 10-year, $2 billion annual extension of its current deal with the NFL, according to Sports Business Daily.
That represents a whopping 70-percent increase in ESPN’s annual rights fee — and gives the Players Association ammunition in the squabble over replacing the collective bargaining agreement, which expires March 3.
The two sides are far apart on a new deal, and if one is not reached, there will likely be a player lockout in March. If the stand-off is lengthy, some or all of the 2011-12 season could be lost.
“It’s a good news/bad news situation for the owners,” said one insider. “The owners are crying poor and it’s going to strengthen the Players Association’s stance that the owners aren’t as bad off as they say they are.
“The owners are, in essence, demanding that the players take an 18-percent pay cut across the board. For them to turn around and get this [money], they definitely don’t come off looking good in this,” the insider noted. “On the other hand, it fuels a big payday for the NFL.”
Players also benefit from any NFL deal because they get 60 percent of available revenues as part of the collective bargaining agreement, sources said.
Players Association reps had no immediate comment. But one source familiar with the contract talks said the ESPN deal was just another sign of “double dealing” by owners.
“On one hand, the owners have been claiming economic hardship, and then to turn around and do a record TV deal — it’s a slap in the face to the players,” the source said.
Not included in ESPN’s expected NFL extension is the Super Bowl — which drew 107 million viewers last year — or the playoffs.
Spokesmen for ESPN and the NFL issued statements yesterday saying both sides are having “conversations” but have not yet reached an agreement.
The NFL has seen its TV ratings increase 8 percent this season over last season — and 23 percent over 2008, according to Nielsen.