THE DAWN OF A NEW ERA

The NFL is finally moving forward after the passing of former Union leader Gene Upshaw. The new head of the NFL Player's Association is not only facing a potential lockout in the near future, but the nation's economic hardships have had a severe impact on the league. Responsibility is beyond high for this post, yet prestige is minimal. Any takers?

Sunday, March 15, 2009 marked the beginning of a new era for the NFL. DeMaurice Smith, a prominent attorney from the D.C. area was unanimously selected as the new NFLPA Executive Director. Smith succeeds the late Gene Upshaw, who passed away last August and emerged as the union's new head after getting selected over the likes of NFL stars Troy Vincent and sports attorney David Cornwell.

Smith, who was voted to a three year term, has his hands full. NFL owners and the NFLPA are at odds over the current collective bargaining terms and specific owners have already voiced their concerns over revenues. The owners specifically feel that the current revenue agreement favors the players citing that 60% of revenues going to them is way too high.

If a deal is not reached prior to the 2010 season, it will be an uncapped season allowing teams to mimic the New York Yankees aggressive tactics in obtaining players. Simply put, large market teams will dominate smaller ones in free agency. But more significantly, there is some concern that if the salary cap is lifted, it will most likely be abandoned by the league.

If a possible lockout wasn't enough, Smith is also taking office in one of the worst economic climates since the inception of the league. While the NFL remains to be the most popular sport in America, fans across the country are more concerned with holding onto their jobs rather than holding onto their season tickets. The poor economy may not have played a role in Albert Haynesworth's $100 million contract, but 2009 will certainly be a trying year for many NFL franchises.

Finally, the rift between the union and retired players continues to stir controversy over whether or not the league is doing enough for former players who are now disabled. Disability advocates across the country are banding together to urge the union back to the bargaining table in an effort to get more benefits to former players.  As the new leader of the NFLPA, Smith will be at the forefront of this controversy and will be tested immediately. 

All indications that Smith will succeed at his new post are favorable. With ties to our nation's new President, Smith has the opportunity to make a name for himself should he be able to weather the tumultuous storms facing the NFL. 

As we like to say in the legal community, "time is of the essence" with respect to Smith's competency as the new NFLPA leader. With a lockout looming and serious issues still yet to be resolved, Smith will be a focal point of change as we enter a new era in the NFL.

Possible Lockout in the NFL?

By Scott Daniels, Esq., NFL Draft Bible

If you haven't realized yet, the National Football League is clearly the most dominant of the four major sports in America. Ratings prove it. Revenue proves it. The circus that surrounds the Superbowl proves it.

NFL players are signing monumental contracts and teams are raking in millions with the success of the league. While baseball is attempting to weather the steroid storm, hockey is still recovering from a lockout a few years ago. And finally, the National Basketball League is more concerned about globalization than popularizing the sport in the states.

Following what has been dubbed one of the greatest Superbowl's of all time, the NFL appears to be virtually incapable of failure, even with Spygate and the intermittent presence of a few bad apples.

Well, it seems appearance can be misleading.

The NFL may be in serious trouble.

As many of you are well aware, the body of law in the NFL is the Collective Bargaining Agreement (CBA). It's essentially a long list of bylaws agreed upon by the owners and the National Football League Players Association (NFLPA). It's like a constitution for professional football.

The current CBA is slated to expire in 2011. Interestingly enough, the player's association or the owners can opt out of this agreement on or before November 8, 2008. If that happens, 2009 will be a normal season and in 2010, the league will not have a salary cap.

With no working CBA in place, a lockout or player strike would be inevitable. Apparently, the owners and the players are very far apart at this point. The main dispute, as it was before the two sides came to an agreement to extend the current CBA in 2006, revolves around revenue sharing.

The owners feel that the players are receiving more than they deserve through the current revenue sharing program and some owners have began to quietly express their discern about this. In fact, Gene Upshaw, executive director of the Player's Association, is preparing for the owners to opt out of the current agreement.

The financial ramifications of a strike or lockout are huge. The National Hockey League suffered a huge decline in popularity and lost more than just money after their strike in 2004. Thousands of loyal fans simply became disinterested.

So, once again, as we've seen so many times in sports, the players and owners are at odds over dollars. With millions of dollars comes greed. Both sides will have to make concessions, or we could face the real possibility of a strike in the NFL.

NFL Signing Bonus - Not So Much of a Bonus Upon Signing

By Scott Daniels, Esq., NFL Draft Bible

Terrell Owens may have something else to cry about after an arbitrator ruled against him in a dispute with his former team, the Philadelphia Eagles.

Owens was adopted by the city of Philadelphia after a phenomenal 2004 season and a heroic effort in the Superbowl. Although the Eagles were unsuccessful in defeating the Patriots that year, Owens lived up to his hype as one of the most dangerous threats to any NFL secondary.

What looked like a long and prosperous relationship for Owens and the Philadelphia Eagles turned out to be more like a vicious Hollywood breakup.

Following the 2004 season, Owens began a campaign of self-righteousness and demanded that the Eagles renegotiate his contract. In November of 2005, Owens was suspended by the Eagles for calling the organization "classless" and criticizing his Quarterback, Donovan McNabb.

Many labeled Owens' departure from Philadelphia similar to that of a bitter divorce. Following a dismal 2005 season where Owens was dismissed from the team with five games remaining, he went on to sign a multi-year deal with the Dallas Cowboys.

It seemed as though the dysfunctional marriage between Owens and the Eagles was all in the past.

Not even close.

The Eagles quietly attempted to recover $1.75 million of Owens' initial signing bonus. For starters, the Eagles garnished his last five paychecks in 2005 totaling $955,880.

Wait a minute. Aren't signing bonuses guaranteed upon signing an NFL contract, hence the name "signing bonus?"

Not quite.

NFL players retain the entire amount of their signing bonus as long as they carry out the terms of their contract. If the player himself breaches his contract, the team has every right to go after some of that signing bonus money.

Remember that guy Michael Vick? The Falcons are currently seeking to recoup his $22 million signing bonus after his infamous actions.

Last Friday, an arbitrator ruled against Owens after the Players Union, on behalf of Owens, brought a grievance contesting the Eagles' attempt to recover $1.75 million in signing bonus money (His signing bonus was worth $2.3 million). The ruling effectively requires Owens to fork up the remaining $769,120. The Eagles already got the other $955,880 when they refused to pay him for last five games of the 2005 season.

In an interview with Mike Tirico on ESPN radio, Owens was asked how he felt about the situation. Owens replied, "It is what it is" and expressed his disappointment with the Players Union.

When asked about his concern about having to pay back almost $800 thousand to his former team, Owens said, "I'm not gonna really worry about the money. Money doesn't really make me."

Interesting. I'm pretty sure it was Owens' greed for more money that created this situation in the first place.