Tuesday, October 7, 2008

Contract Blues: Why Do NFL Players Hold Out?

Contract negotiations between teams and players dominate NFL news in the summer months. Dirty, sexy, money talk comes complete with agent sound bites and team press releases promising to do “whatever is best for the organization.”

Fans get angry as the season's hopes become contingent upon the negotiating skills of their local front office staff. As much as we love the game, the NFL is a business.

The more we understand the business relationship between players and teams the better we will be able to temper our emotions during this difficult part of the season. The truth of the matter is that players hold out for one major reason: job insecurity.

Professional football is obviously a very competitive industry. Every year, NFL teams draft hundreds of young men that intend to take a current player’s job. The number of openings is finite, and the number of candidates continues to grow every year.

Professional players with contracts need to go out and make their team every year in order to keep their jobs. In this environment, it is easy to see why a player would want to make as much money as possible, as quickly as possible.

He never knows when the golden goose is going to die—leaving him to a life of broadcasting, if he’s lucky, or automobile sales if he's not so lucky.

NFL contracts are only binding to the player. Brett Favre, after retiring from the Green Bay Packers, was still not free to pursue a contract with the Minnesota Vikings. The Packers owned his rights.

Shaun Alexander signed an eight-year contract worth $62 million, with $15 million guaranteed in March of 2006.

It has been two-and-a-half years since then, and Mr. Alexander is out of football, against his will. Two injuries and a few boos after winning the league’s Most Valuable Player award, Alexander literally can't find a job with any team at all.

If the MVP can be forgotten so quickly, why should any of these Pro Bowlers think there will be any loyalty shown towards them?

Shaun Alexander played poorly and was cut by an organization that just made a financial obligation to him. He's never going to get anything close to $62 million from the Seattle Seahawks.

If a player plays well, why shouldn’t he insist on more money? It seems fair.

As if that weren't bad enough, even guaranteed money from an NFL franchise isn’t exactly guaranteed, when push comes to shove.

Let’s examine the cases of Ricky Williams and Michael Vick.

Ricky Williams retired from the NFL in 2004—an abrupt move that shocked the football world. The Miami Dolphins sued Mr. Williams for breach of contract, and in February of 2005 a federal judge ordered him to repay $8.6 million in bonus money.

The Atlanta Falcons tried to recoup over $20 million in roster bonuses from Michael Vick after he was convicted in a federal dog-fighting case. This time, the courts ruled in favor of the player, stating that he clearly made the roster and was therefore due the bonuses.

Considering the environment, it’s easy to see why players want as many guaranteed dollars as they can get. Even the guaranteed dollars are contestable in court, and NFL teams feel very little shame about trying to get their money back when their bets on player performance don’t pan out.

Should the players really refrain from extorting extra cash when it’s the player who has the power?

NFL teams have the option to cut every player before the season starts. Even after bonuses have been paid, NFL teams aren't above asking for their money back in court.

Ask yourselves: Would you be loyal to these organizations? Or would you juice them for as much money as humanly possible?

I know what I would do.

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