Episode Transcript
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(00:07):
Hello and welcome
to the Sports Business Podcast with Prof.
C, the podcast that exploresthe world of professional,
collegiate, amateur, and Olympic sports.
I’m Mark Conrad, or Prof.
C from Fordham University’s Gabelli Schoolof Business, where I serve as Professor
(00:28):
of Law and Ethics and the Directorof the Sports Business Initiative.
The National Football League Players’
Association is the union that representsthe NFL players
in their collective bargainingnegotiations with the league and, in
addition, represents players in grievanceproceedings
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against teams and the league.
Like any union, the NFLPA’s leadershiphas the responsibility
as a labor organizationto represent employees
in their quest for better salariesand working conditions.
But it has some unique challenges
that differ from typical employees unions.
(01:12):
First, it represents playerswith a wide range of salaries and levels –
from elite stars commandingtens of millions of dollars a year
in increasingly guaranteed contractsto developmental players
who participate in practices,but do not engage in weekly games.
Not surprisingly,the goals of such an array of players vary
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and trying to accommodatesuch a group is difficult.
Adding to that is the power of the NFLand its team owners.
The league and the owners have been ableto use their leverages
to conclude collectivebargaining agreements
that have been less protective of playersthan in other leagues.
Many NFL player contractsremain non-guaranteed,
(02:01):
leading to playersbeing cut by their teams.
Also, neutral arbitratorsdo not resolve disputes,
but the commissioner is given that power,which is very unusual in labor law.
But I’m not here to criticize collectivebargaining agreements
consummated by the NFLPA.
(02:22):
I am criticizing the lack of transparencyand possible violations
of good faith obligations to the playersthey serve.
The lack of transparencyby the union involves a saga
that is long and tricky, so bear with me.
It started with reports of a secret
deal between the union and the NFL.
(02:45):
The union filed a grievance arbitration
based on owner collusion in October 2022,
after a number of prominent veteranquarterbacks failed to secure
fully guaranteed contracts in the monthsfollowing Deshaun Watson’s
historic five-year, $230
million deal with the Cleveland Browns –a contract that turned out
(03:08):
to be disastrous for the team,as many Browns fans can attest.
The arbitrator dismissed the union’soverall claim of collusion,
but noted that the NFL encouraged teams
to “work together” to reduce
the amount of guaranteed moneyoffered to players.
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Sounds collusion-y doesn’t it?
Or at least shady.
But the union, instead of playing upthis aspect of the arbitrator’s ruling,
agreed with the NFL not to release itto the players and the public.
Why did the union leadership agreeto this?
No one knows for sure, butit sounds like a failure in transparency.
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Is that what an NFL playerwants from his union executives?
I doubt it. Then it gets worse.
ESPN reported that the union’sExecutive Director,
Lloyd Howell, the person in charge,
had a few skeletons in his closet.
First,he was sued for sexual discrimination
and retaliationwhile at his previous employer.
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Second, he worked in a part-time paid role
as a consultant for a private equity firm
that invested in NFL franchises
while remainingExecutive Director of the union.
The third, and this little tidbit,
he twice charged the union for tripshe made to strip clubs.
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It was called a “Player EngagementEvent to support
& grow our Union.”
I guess it is a version of boysbeing boys.
And the coup de gracemay be an FBI investigation
into Howell’spotential personal enrichment
in a licensing groupco-owned by multiple pro sports unions
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that allows playersto make money off their name, image,
and likeness,according to The Athletic magazine.
In the wake of these reports,Howell resigned his position
and the union selected an interim leader.
You may wonder howHowell even got this job.
Did he previously work in the labormovement? No.
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Did he have experiencein collective bargaining? No.
Was he a former player? No.
He arrived at the NFLPAafter he was elected
after a yearlong, highly secretive search
by the union’s Executive Committee.
J.C. Tretter, a former NFL playerand president of the union,
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and a small group of playerson the executive committee,
vetted the candidates,but kept their names secret
from the broader group of playerrepresentatives until it was time to vote.
Now that the executive directorand the union’s
president are gone,where does the union go from here?
Whoever leadsthe NFLPA will have major challenges.
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But it is time for the unionand its executive committee to rethink
its approach and open the processto far greater transparency.
A laudable goal would be to electrepresentatives who could follow the lead
of the Major LeagueBaseball Players Association,
which has consistently foughtfor the interests of its players
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and has the strongsupport of its membership.
In four years, the
present agreement with the NFL expires.
While it is true that baseball playershave certain advantages
that are not found in their NFLcounterparts,
any new leader of the NFLPAwill have to fight harder,
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take on the NFL leadership,and be more transparent to their members.
If not, NFL players will continue to beill served.
For the Sports Business Podcastat Fordham’s
Gabelli School of Business,I’m Mark Conrad, or Prof.
C, have a great day!