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 • NFL Head, Neck and Spine Committee – Interests: Player safety and retention of antitrust – Interests: Strengthen the exemption status NFL’s leadership role in research, education, – Power: Change policies prevention, and on concussion treatment of head and diagnosis, treatment, spine injuries in sports and return-to-play guidelines – Power: Direct influence on NFL health and – Coalitions: Players union safety policies and house committees

ISSUE #1 STAKEHOLDERS • NFL Players • NFL Sports Commentators – Interests: Member of a club, to earn high – Interest: Employment, income, be competitive, love of the sport, and avoid injuries performance analysis – Power: Support – Power: Increase the organization’s policies awareness of illegal on health and injury hitting and the health prevention impacts (head trauma) – Coalitions: Players union and associations

ISSUE #1 STAKEHOLDERS • House Energy and • House Judiciary Commerce Committee Committee – Interests: Players health – Interests: Justice w/in federal courts, admin – Power: Political; agencies, and federal investigating and law enforcement entities reporting specialized subjects, encourage the – Power: Legal; creation of legislation, enforcement of justice influence on public – Coalitions: health issues and Administrative Law, legislation 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 only way to market NFL brand – Supreme Court returns case to lower court for trial on issue of whether scheme is a unreasonable restraint on 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 • Team Owners • NFL – Agenda is the same as – Agenda is expanding the antitrust exemption as far NFL, maximizing the as possible. antitrust exemption – Interest is to allow them to benefits the owners. act in ways that will – Interest is that a maximize revenues for the broader exemption will league (owners). maximize revenues. – Resources are their access to what are – Resources are their presumably excellent ability to fund the lawyers, and the ability to litigation that the NFL fund litigation as new engages in. cases are brought.

ISSUE #2 STAKEHOLDERS • Players Union • American Needle – Agenda is to see the – Agenda is to be back as a broad antitrust exemption vendor of gear to individual defeated. teams, by defeating claim of an antitrust exemption. – Interest is a concern that – Interest is that they will owners could claim an increase their revenue if exemption when they return as vendor of negotiating player gear. contracts, though labor – Resources may be limited law governs collective financially, but they were bargaining. joined by other parties in the – Resources allowed them Supreme Court litigation, to file brief in support of including the Sports Law American Needle in Program at Tulane Supreme Court case. University Law School.

ISSUE #2 STAKEHOLDERS • Coaches • Players – Agenda is to see the broad – Agenda is to see the broad antitrust exemption antitrust exemption defeated. defeated. – Interest is a concern that – Interest is a concern that owners could claim an owners could claim an exemption when negotiating exemption when negotiating coach’s contracts. player contracts, though – Resources allowed the labor law governs collective coaches association to file bargaining. brief in support of American – Resources allowed their Needle in Supreme Court union to file brief in support case. 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 owners 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 NFL Players Interests: Increase Interests: Protect revenue and decrease player interests costs in new CBA (compensation, health, Power: Ability to lockout safety) players, secured revenue Power: Public support, stream, lobbying lawsuit option influence, anti-trust Coalitions: NFLPA, exemption (maybe) Congress, Support Coalitions: Congress, Personnel, Impacted Media Industry Vendors

ISSUE #3: STAKEHOLDERS Local Economies Support Personnel Interests: Avoid lockout Interests: Maintain and depressed revenue employment stream Power: Minimal Power: Minimal unless Coalitions: Minimal organized Coalitions: Congress, vendor coalitions

ISSUE #3: STAKEHOLDERS Congress Media Interests: Protect Interests: Protect national sport and growth advertising revenue industry, avoid public stream and established backlash programming schedule Power: Anti-trust Power: Public exemption, political exposure/opinion power, access to Coalitions: Franchise resources owners, Congress Coalitions: Minimal

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