Collective bargaining is a labor treaty based on the results of the discussions between the NFL team owners and players. The labor agreement encompasses the division of league revenues, safety and health standards, player benefits, including medical insurance and pensions. The CBA is important in advocating for player’s rights and maintaining the structure of the league
Summary of Negotiations
The latest collective bargaining agreement (CBA) was approved in 2020 and is valid until 20130. It includes several changes including player benefits, a change in the distribution of league benefits, increase team squads, and improvements in player safety and health. On that note, there are several gains that each side gained from the negotiations.
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Despite the hesitance by the players to sign the deal, there are several benefits that they gained from it. One of the biggest concessions made by the team owners to the players is associated with the division of league revenues. Under the new agreement, the players will gain 49% of the league’s revenue (Young, 2020). This will begin with the 2002 season. Another benefit pertains to player salaries. File and rank NFL will receive a pay increase of $100,000 starting immediately. It means that minimum annual wage for a rookie would increase to $610,000 (Sterling & Levenson, 2020). Effectively, this means that the salary cap for the players has increased. The next advantage of the league covers player benefits. The pension fund for ex-NFL players will rise by 10% whereas the 410k matching will increase by $30,000 per year (Young, 2020). Also, players will be subject to vision coverage as part of the health benefits. Further, they will receive tuition reimbursement amongst other benefits focused on giving NFL players a better future after retiring.
The greatest benefit for the team owners stems from the schedule changes. The roster for the league’s regular season will increase to 17 games for each team from the current 16 games (Schad, 2020). The teams will play 3 preseason matches rather than 4. The change is expected to take place in 2021. This will enable teams to generate more revenue due to the extra season games. Preseason games do not generate as much revenue as the regular season games. Also, the NFL will expand the postseason to allow seven teams from each conference to gain a place in the playoffs. The wildcard stage will constitute games evenly spread out across the weekend. Again, this change means that team owners will be able to generate more revenue.
Evaluation
An examination of this latest CBA reveals that the players received the better deal. The most standout benefit is the division of revenue whereby players will receive 48% of the league’s revenue. To put this deal in perspective, the NFL gained more than $16 billion in revenue in 2018 (Young, 2020). On that note, gaining almost half of this revenue will significantly improve the welfare of employers. Another key benefit and one that is largely ignored pertains to the long-term player benefits. The increase of the scope of medical insurance will enhance the health and wellbeing of players. This improvement is line with section 18 of the Federal Occupational Safety and Health Administration Act that mandates employers to be concerned about the wellbeing of their safety.
Overall, the new CBA approved by NFL players and team owners will provide benefits for both parties. Nevertheless, the players will get the greatest benefit as the deal gives them a sustainable safety net. The deal gives precedence to other sports to follow suit and enhance the welfare of players.
References
Schad, T. (2020). “Here are the six biggest changes in the NFL's new collective bargaining agreement.” USA Today. Retrieved from https://www.usatoday.com/story/sports/nfl/2020/03/15/nfl-cba-collective-bargaining-agreement-changes-details/4878786002/
Sterling W., & Levenson, E. (2020). “NFL players narrowly vote to approve new collective bargaining agreement.” Retrieved from https://edition.cnn.com/2020/03/15/us/nfl-collective-bargaining-agreement/index.html
Young, J. (2020). “With billions at stake, here’s what’s holding up the NFL’s collective bargaining agreement.” CNBC . Retrieved from https://www.cnbc.com/2020/03/03/nfl-cba-., whats-holding-up-the-vote.html
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