NFL Report:  The Commissioner's View  -- Spring 1998

FOUNDATION SET FOR FUTURE

  At a restaurant recently, a former colleague stopped by the table to say hello and offer a comment on the business of sports.

“I don’t envy you having to deal with so many high profile, complex issues,” he said. “The sports business is a complicated arena these days. But, you know, the NFL has things running pretty smoothly.”

I thanked him and said it is testimony to the strength of the game of football and the structure of the league put in place many years ago by the NFL’s visionary leaders. It also reflects the teamwork that currently exists on the business side of the NFL.

There is no question that, in terms of setting a foundation for the NFL’s future health and growth, 1998 already has been a good year. January brought the news of our new eight-year television agreements and was followed by a Super Bowl described by many observers as the best ever. Then in late February we reached agreement with our players’ union on an extension of the Collective Bargaining Agreement. That’s a pretty strong 1-2-3 to start the year!

When our new television contracts were announced, they were described by some as “staggering,” “stunning,” or “mind-boggling.” I think of the TV deal in a different way–as just a beginning.

The television contracts reaffirmed the enormous popularity of the NFL and are a tribute to the players, coaches, and fans, past and present. The best news for fans is that the NFL will continue to be the most widely available sport on television, with all regular-season and playoff games on free, over-the-air television.

The NFL’s unique sharing of national television revenue also means the TV deal will benefit all teams equally. This is important for fans in our smaller cities whose teams will continue to have an opportunity to sign top players and compete for the Super Bowl.

The television contracts also present challenges, beginning with the challenge to spend the money in constructive ways. We met this same challenge earlier in the decade when the NFL’s television agreements of 1990 also doubled club revenues. That money was used constructively to accomplish several goals, including bringing labor peace after years of strife, expanding to the Carolinas and Jacksonville, and investing in the international development of the league.

This latest TV deal created the opportunity to further extend labor peace and improve the Collective Bargaining Agreement. The extended labor agreement helps veterans across the board by raising minimum salaries and limiting the growth of rookie salaries. Player benefits also were improved significantly, especially in areas that will help players in the years after they leave the game. The salary cap and franchise/transition player designations were preserved to promote competitive balance and team continuity.

The new labor deal addresses two other important priorities–investment in youth football and franchise stability. We agreed with the union to take $100 million of the television money and invest it in the game at the youth level. We also agreed that it is in the interest of clubs and players to explore ways to contribute to the enhancement of stadiums on a case-by-case basis.

Looking ahead on the business side, our priorities this year will be the re-establishment of the Cleveland Browns, who will kick off in their new stadium in 1999, and the future of the NFL in Los Angeles and Houston. On the football field, we expect another season of exciting, competitive action. Our hope overall is that the rest of 1998 turns out to be as productive as these initial months.