Miami Dolphins owner Stephen Ross says the NFL's business model is broken, with the main issue being out-of-control player costs, Omar Kelly of the South Florida Sun-Sentinel reports.
"Costs are going up. We're at the point now people can't afford to pay more for their entertainment," Ross said. "Typically, that's what has always happened. You always raised the prices. But we're at the point where you can't raise prices anymore. I think everybody accepts that but our costs keep going up. You have people earning $2 million-plus a year. Where do you think the line of reason falls?"
Kelly notes that Ross is the NFL's newest owner, plopping down $1.1 billion to purchase the Dolphins from Wayne Huzienga.
Ross purchased the Dolphins in two phases.
The first half occurred in February of 2008, three months before his fellow owners voted to opt out of the collective bargaining agreement. Ross is a smart businessman, so why would he commit to spending over a billion dollars for a team in a league with a "broken business model" if he a.) wasn't aware of the perceived problem, and b.) didn't know that a fight to reign in player costs was on the horizon?
Ross purchased the remaining 50% in January of 2009.
Kelly also reports that Ross doesn't think the players are motivated to get a deal done right now because they aren't losing money.
According to my unofficial salary database, players stand to lose over $40 million in workout bonuses this off-season. Nearly $250 million in salary advances and option bonuses are being delayed by the lockout, not to mention the hundreds of millions of dollars that are not being spent on free agent contracts this month.
Considering that we know that the owners sought $4 billion from the networks to fund the league's first work stoppage in a quarter century, and that 31 of the 32 NFL teams, including the Miami Dolphins, are requiring season-ticket holders to submit payment on their invoices, I think its rather disingenuous for any owner to suggest that players aren't motivated to get a deal because they're not losing money.
They may not be losing game checks, but as a group, they're losing hundreds of millions of dollars right now.
source: Mac's Football Blog
Posted by Brian McIntyre
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