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As NFL lockout ends, AFL should take note

Expert
22nd July, 2011
9
1381 Reads

The four-month long NFL player lockout is set to officially end soon. With players associations from various codes looking on, an end to one of the most radical negotiations will encourage the AFLPA.

With 31 of 32 franchise owners voting in favour of the 10-year agreement, there are several similarities between the NFLPA and AFLPA demands. Undoubtedly watching the NFL labour lockout unfold, it is hopeful that the AFL will not see a similar lockout in terms of length.

But the possibility of one is very well likely due to the firm stances of both the AFL and AFLPA.

From various media outlets within the game, the major area of dispute is the percentage of league revenue which goes back to AFL players. Additionally, rookie-list salaries and retirement funding are sticky areas.

Taking a look at what the NFL owners have agreed on, labelling the AFLPA’s demands as ‘greedy’ is palpable absurdity. Below are the three most relevant terms for AFL comparison from the NFL CBA:

– Beginning in 2012, salary cap to be set based on a combined share of “all revenue,” a new model differentiated by revenue source with no expense reductions. Players will receive 55 percent of national media revenue, 45 percent of NFL Ventures revenue, and 40 percent of local club revenue.

– Player share must average at least 47 percent for the 10-year term of the agreement.

– Increases to minimum salaries of 10 percent in year one, with continuing increases each year of the agreement.

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With AFL players seeking a fixed 25-27 percent share of revenue, the AFL has repeatedly rejected this demand. Under the current CBA, AFL players receive 21 percent. NFL players will be receiving 47 percent!

The obvious difference is the income streams of the AFL and the NFL where NFL franchises are privately owned.

However, refusing to meet the miserly demands of the AFLPA for a reasonable modest pay increase begs the question, why doesn’t the AFLPA play hard ball and increase their demands?

This reminds me of a scene in the office when Michael Scott wants a raise.

“This may be the first time that a male subordinate has attempted to get a modest scheduled raise by threatening to withhold sex from his female superior. It will be a ground-breaking case, when it inevitably goes to trial.”

With very reasonable demands from the AFLPA, Andrew Demetriou is aware that a labour strike will ensue if the AFL does not compromise on their offer. Demetriou has claimed the AFL are trying to get a better deal done for the player than their 25-27 percent request, suggesting capping player-share revenue with a percentage is “lazy”.

Perhaps he should offer 27 plus percent.

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The other major demand the AFLPA is identical to the NFLPA. They are requesting a 10 per cent increase in salary from year to year. The AFL is offering three per cent.

The key differential here is that the AFL does not have the consistence of NFL revenue growth.

With two expansion clubs and various other projects, AFL revenue increased six percent in 2009 and 10 percent in 2010. The AFL will not let player payments increase at a higher growth than its own operations.

With expenditure set to increase, this is the one area the AFLPA must end up compromising on. Six to seven per cent is a more realistic outcome.

As fans, we should not wish for a labour strike nor do we wish to see players underpaid. Whilst the CBA issue should be at the forefront of AFL priorities, the tendency of delayed sporting CBA negotiations means the logical expected outcome will not appear until it is too late.

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