PRESENTATION AGENDA Issue #1 Concussions Issue #2 Antitrust - - PowerPoint PPT Presentation

PRESENTATION AGENDA

Issue #1 – Concussions Issue #2 – Antitrust Issue #3 – Labor Negotiations

ISSUE #1: CONCUSSIONS

• Background

– The NFL has been aware of concussions for the past 25 years, but since June 2007, it has become a major concern in the athletic community – Highlights

• Published studies linking head injuries to higher

rates of dementia and cognitive disabilities

• Chronic Traumatic Encephalopathy (CTE)
• Four deaths of former NFL players in recent years

ISSUE #1 STAKEHOLDERS

• NFL Commissioner

– Interests: Player safety and retention of antitrust exemption status – Power: Change policies

• n concussion

diagnosis, treatment, and return-to-play guidelines – Coalitions: Players union and house committees

• NFL Head, Neck and

Spine Committee – Interests: Strengthen the NFL’s leadership role in research, education, prevention, and treatment of head and spine injuries in sports – Power: Direct influence

• n NFL health and

safety policies

ISSUE #1 STAKEHOLDERS

• NFL Players

– Interests: Member of a club, to earn high income, be competitive, and avoid injuries – Power: Support

• rganization’s policies
• n health and injury

prevention – Coalitions: Players union and associations

• NFL Sports

Commentators – Interest: Employment, love of the sport, performance analysis – Power: Increase the awareness of illegal hitting and the health impacts (head trauma)

ISSUE #1 STAKEHOLDERS

• House Energy and

Commerce Committee – Interests: Players health – Power: Political; investigating and reporting specialized subjects, encourage the creation of legislation, influence on public health issues and legislation

• House Judiciary

Committee – Interests: Justice w/in federal courts, admin agencies, and federal law enforcement entities – Power: Legal; enforcement of justice – Coalitions: Administrative Law, Process & Procedure Project

ISSUE #1: ALTERNATIVES

• Enforcement of Return-to-Play

guidelines

• Team physicians’ adherence to players

health

• Increase illegal hit penalty cost
• Assign independent neurologist to NFL

clubs Discussion

ISSUE #1: RECOMMENDATION

• NFL crackdown on tackles involving

helmet contact

• Suspend players for dangerous and

flagrant hits that violate rules

• Educate players on how to tackle
• Make traumatic brain injuries suffered

by players a priority for the NFL

ISSUE #1: IMPLEMENTATION

• Human

– Add neurological specialist to athletic medical team

• Monetary

– Continue investments in research and implementation of prevention practices

• Technological

– Develop effective tackle practices

ISSUE #2: ANTITRUST

ISSUE #2: BACKGROUND

• American Needle, Inc. vs. National Football

League – NFL grants Reebok exclusive headwear license in 2001 – American Needle sues NFL claiming violation of antitrust law – NFL argues in District Court that it is a single entity immune from antitrust – Appeals Court finds for NFL, upholding “single entity” finding

ISSUE #2: BACKGROUND

• American Needle, Inc. vs. National Football League

– Supreme Court rejects argument that joint licensing is

• nly way to market NFL brand

– Supreme Court returns case to lower court for trial on issue of whether scheme is a unreasonable restraint

• n trade

– Antitrust issue currently resolved as Supreme Court held that the NFL does not have a blanket antitrust exemption. – American Needle and all new cases will be tried using test set down by Supreme Court

ISSUE #2 STAKEHOLDERS

• NFL

– Agenda is expanding the antitrust exemption as far as possible. – Interest is to allow them to act in ways that will maximize revenues for the league (owners). – Resources are their access to what are presumably excellent lawyers, and the ability to fund litigation as new cases are brought.

• Team Owners

– Agenda is the same as NFL, maximizing the antitrust exemption benefits the owners. – Interest is that a broader exemption will maximize revenues. – Resources are their ability to fund the litigation that the NFL engages in.

ISSUE #2 STAKEHOLDERS

• American Needle

– Agenda is to be back as a vendor of gear to individual teams, by defeating claim of an antitrust exemption. – Interest is that they will increase their revenue if they return as vendor of gear. – Resources may be limited financially, but they were joined by other parties in the Supreme Court litigation, including the Sports Law Program at Tulane University Law School.

• Players Union

– Agenda is to see the broad antitrust exemption defeated. – Interest is a concern that

• wners could claim an

exemption when negotiating player contracts, though labor law governs collective bargaining. – Resources allowed them to file brief in support of American Needle in Supreme Court case.

ISSUE #2 STAKEHOLDERS

• Players

– Agenda is to see the broad antitrust exemption defeated. – Interest is a concern that

• wners could claim an

exemption when negotiating player contracts, though labor law governs collective bargaining. – Resources allowed their union to file brief in support

• f American Needle in

Supreme Court case.

• Coaches

– Agenda is to see the broad antitrust exemption defeated. – Interest is a concern that

• wners could claim an

exemption when negotiating coach’s contracts. – Resources allowed the coaches association to file brief in support of American Needle in Supreme Court case.

ISSUE #2: ALTERNATIVES

• Court has given NFL a potential victory, though it did not do so directly

– Decision of courts on case-by-case basis will decide this – Making claim that NFL was entitled to blanket antitrust exemption could have backfired, need to be careful not to overreach again

• Do nothing – Case is before lower court, not an option

– Need to actively pursue a victory in lower court – Not participating isn’t an option

• Legislative – Unsuccessful in past, but pursuing blanket exemption with

Congress could be best way to avoid potentially unpredictable court decisions and get what NFL apparently wants – Continuing the NFL’s lobbying of Congress and individual team

• wners financial support of individual members may be best path to

success

Discussion

ISSUE #2: RECOMMENDATION

• The implementation of the NFL’s strategic plan in

regards to antitrust should begin by them waiting out the lower court’s decision on their exemption in American Needle.

– If lower court finds against them then they need to be prepared to appeal, and if they win they need to be prepared to respond to appeal.

• There is limited short-term monetary impact, other

than litigation costs.

– Need to marshal resources for future litigation and lobbying to expand the antitrust exemption.

ISSUE #2: RECOMMENDATION

• The attitudes/values of top management are critical
• here. It was potentially dangerous to seek the

antitrust exemption that NFL desired in the initial case. – Congress has already rejected this – Supreme court could have ruled completely against NFL – More humility, pursuing desired exemption incrementally in cases, while still lobbying Congress would have taken longer and been more expensive, but less perilous

ISSUE #3: BACKGROUND

Contentious Issues

Season Length and Compensation Network TV Contracts Annual Revenue Allocation Player Cost Allocation Franchise financial disclosure Salary Caps / Minimum Salary Threshold

Common Ground

Cap on Rookie Contracts Revenue Allocation to Veterans and Retirees Avoid a Lockout

ISSUE #3: US CONGRESS

ISSUE #3: STAKEHOLDERS

Franchise Owners Interests: Increase revenue and decrease costs in new CBA Power: Ability to lockout players, secured revenue stream, lobbying influence, anti-trust exemption (maybe) Coalitions: Congress, Media Industry

NFL Players Interests: Protect player interests (compensation, health, safety) Power: Public support, lawsuit option Coalitions: NFLPA, Congress, Support Personnel, Impacted Vendors

ISSUE #3: STAKEHOLDERS

Support Personnel Interests: Maintain employment Power: Minimal Coalitions: Minimal Local Economies Interests: Avoid lockout and depressed revenue stream Power: Minimal unless

• rganized

Coalitions: Congress, vendor coalitions

ISSUE #3: STAKEHOLDERS

Congress Interests: Protect national sport and growth industry, avoid public backlash Power: Anti-trust exemption, political power, access to resources Coalitions: Minimal Media Interests: Protect advertising revenue stream and established programming schedule Power: Public exposure/opinion Coalitions: Franchise

• wners, Congress

ISSUE #3: ALTERNATIVES

Avoid Interference in Negotiations Hire an Independent Negotiator Mediate Negotiations Accept Lockout Likelihood and Establish Replacement League Petition Congress to Act to Prevent Lockout Discussion

ISSUE #3: IMPLEMENTATION

Financial

Encourage those banks financing franchises to extend grace periods for loan defaults through the end of 2011 season Lobby Congress for increased tax subsidies for stadiums Establish reserve accounts – to meet player healthcare and salary shortfalls

Legal

Discourage the decertification of the NFLPA Operate in accordance with any anti-trust rulings and existing labor law provisions

ISSUE #3: IMPLEMENTATION

Public Relations

Continue lobbying efforts to shore up Congressional support , in the event of a lockout Devise strategic league priorities that will dictate any intervention activities (avoid alliance with either owners or players) Protect NFL against public backlash by implementing provisions to protect secondary stakeholders – local economies and support personnel