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NFL: TV plays huge role in labor negotiations
By David Zizmor July 12, 2011 |
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SAN FRANCISCO--There are certain pressures that ought to be weighing down on both sides and a little more on the owners right now than anything else that's a monetary situation. Also the fact that we know the owners have money and the fact that we know that their super rich and they have plenty of money. The one thing we know about the owners just because they have money they want more money and this absolutely is what this whole matter is about. They want more money, they believe in their fair share of money but they can start losing money in a number of ways if they don't get a deal finalized relatively soon. One way to make a lot of money in the NFL is everyone knows that there's a TV contract, there's the advertising revenue that is generated by those, That's what the TV networks rely on, their contracted with the NFL and then they get the advertising. If the NFL works like it should the games should start on time. If it moves like the exhibition season it will be delayed. That means that there's a number of games in pre season that will not be played in August and regardless how they neglect to attend those games those games are televised. They're not televised to the extent of the regular season but there is a number of Monday nights that are played, there's the Hall of Fame game in Canton Ohio in early August when it's typically played. Those games are all nationally televised and those games get national ad revenue the networks rely on those games and get quite a bit of cash. We're talking about tens of tens of millions of dollars here. If those games in August the exhibition season games if those games are not played that is a sign by the television networks that there's something wrong with the negotiating process that there's a possibility that the regular season will not happen. If the networks in the situation of negotiations say "oh my goodness, were losing pre season games" that's means there's a pretty more than likely chance were going to start losing regular season games. The league would have to go to a contingency plan and make up the money their losing by not being able to air ads during those exhibition games. So because they can't air ads or sell ads during the Hall of Fame game in Canton the television networks will have to look elsewhere to make up that lost ad revenue. Where could they go they could go to baseball, hockey or college football games. College and baseball will be the two biggest customers for the networks in the event of a total lockout. That money that goes to advertising other places does not come back to the NFL that money is locked up in a contract with the advertiser and with the specific sport that it's slated to air during the season. That if that money does not come back and two or three years down the road the next television network and contract negotiations don't start until 2014 but if you get down the road the TV execs we'll say, "we know you guys missed these games we know you have labor negotiating coming up, we're scared we're going to lose money because you guys are thinking of locking each other out." It creates a bad taste in the mouth for TV execs and just creates a big problem down the road, so whats going to happen is as we get closer and closer to losing the pre season games. Your going to start seeing more pressure to get something finalized. Your going to have to start seeing something happen in the next week or two. Maybe not this week but the end of next week your going to have to have a finalized agreement because your going to need to have an agreement finalized and then enough time to get into camp learn a little about the playbook and learn whats going on. David Zizmor is covering the NFL lockout for Sportstalk radio |
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