What is your kingdom worth?

So you own a business - thousands of employees - highly profitable - Customers can't get enough of your product.  Then  one day Tony Soprano & his crew walk in, look around, tell you how much they like the place. They inform you they are in the business of making sure business's stay open - wink wink. 







Tony smiles and says:

 "hey, we have the same accountant - I noticed you made a lot of money  last year after expenses - and because we know you want to stay open - we think you should give us 75% of it as a - you know - insurance against a complete work stoppage - if you know what I mean". 

You think about your alternatives, and reason its best to just pay Tony - and maybe he will go away.  

After six straight years of handing Tony 3 out of every 4 dollars you make - you muscle up and tell Tony its time to renegotiate. Tony says: 

"Yeah, I was thinking the same thing - Us taking 3 out of 4 dollars you make - just doesn't work for us anymore - now we want 5 out of 6". 

 As the owner of that business, if your only choices are pay him - or close up shop - what do you do?

While you ponder the answer to that, here are some facts about the current NFL labor dispute: 

1. The NFL is just under a $10 billion dollar a year business

2. 4 billion comes from TV rights, 6 billion from Gate & Merch

3. The expiring contract had revenues split 55/45 owners/players

4. The owners still have to pay coaches, stadiums, merch cost, refs, equipment, Insurance, taxes, and the day to day expenses out of their 55% - while players pay none of it. 

5.   The owners claim those things cost 4 billion of their 5.5b share, leaving them about 1.5b. 

6.  So, players take home $4.5b, the owners get $1.5b, stated another way 3 out 4 for the players - the way it stands today.  

7. The players are looking to get their end raised to 50% 0r $5 billion, leaving the owners to get $1 billion.

8. In other words, the players are not content  with 3 out every 4 dollars in after expense revenues, they want 5 out of 6 instead. Just like Tony Fuckin Soprano.

  As you can now see, there is NO significant difference between the Soprano business shakedown & the NFL labor dispute. The numbers are the same.  Admittedly, its difficult to feel sorry for Billionaire NFL owners - but it is their kingdom at stake.  

  With the players getting 3/4 now, it seems the players are already over paid.  This is why the owners are willing "to go to the mattresses". Their pockets are deeper, my guess is their resolve is deeper also. They will tell Tony, I mean the players to go fuck themselves, The owners will get what they want - a larger overall share. 

To put a number on the current gap, the two sides are about a billion apart. If they each give about half - you are only talking about 5% of revenues . Seems silly, either side would flush a whole season over 5% of revenues.  

  We here at mytwocent$ are of the opinion cooler heads will prevail. A deal will get done without any loss of regular season games. There is simply too much $$ at stake. When the deal is struck, both sides will claim  victory by pointing to different parts of the deal. For example, they could up the players share to 4/5 - if the owners get revenue deductions for stadium costs. Both sides could claim victory.  In fact, they should throw the fans a bone too - can you say 18 game season?  

Are you ready for some Football - Or what?