AmLaw Agrees With The Guru
It looks like I’m not the only one who thinks the NFL’s “arbitration” process is a bit of a sham. Here’s an article from yesterday’s Am Law Daily discussing the issue.
The column also addresses the uncertainty facing the Arena Football League and their cancellation of the 2009 season. For what it’s worth, I think the AFL is an important property. American football doesn’t really have a true minor league. Sure, there are various and sundry semi-pro leagues, but nothing like the NBDL for the NBA or minor league baseball system for MLB. While, there are plans for a new minor league called the United Football League to begin play in 2009, I’m seriously questioning the viability of that enterprise. We all remember the XFL, right? Launching a new sports property, let alone rebuilding one with some brand equity such as the AFL, is an incredibly expensive undertaking – especially in a down economy. The AFL is a unique property that serves a niche market. I’m really hoping that the AFL’s current struggles aren’t the “canary in the coal mine” for other sports properties, both minor league and major league. History has shown us that minor league franchises are the first to suffer when the economy turns south.
I have long been a proponent of smaller leagues adopting a single entity approach, whereby the league owns (or has a controlling interest in) all of the teams and holds the contracts to all of the players. Such a structure allows the league to control costs much more effectively and develop marketing and sales platforms which are much more efficient than each team handling its own marketing. In addition, the overall administrative costs are reduced, as the executive tier of the organization is focused at the league level and not spread across many teams.
Agree, disagree, or think my writing stinks? Let me hear about it.
Matt Breeden (SportsLawGuru.com) is an internationally respected business advisor and attorney based in Indianapolis, IN. His practice is focused on Sports & Entertainment, Intellectual Property, Commercial and Corporate Law. He represents Sports & Entertainment properties, as well as many other businesses, in a variety of matters, including: Broadcast & Digital Media Agreements, Licensing Agreements, Sponsorship Agreements, Commercial Agreements, Athlete/Driver Contracts, Insurance & Risk Management, Employment Agreements, Litigation Management, Mergers & Acquisitions, Business Formation and Corporate Governance.
