NFL says tickets would be refunded if games are cancelled due to a lockout
The Collective Bargaining Agreement between the National Football League and the Players Association expires on 3rd March and the two sides are not exactly close to wording a new CBA. NFL Commissioner Roger Goodell said that the NFL and the union
were working hard to reach an agreement that would be ‘fair and forward-thinking.’ He added that he was confident an agreement would be reached at some point but until then the fans should know that they would receive refunds for cancelled games.
“This is a tough economy. The NFL shouldn't be financing itself on the backs of its fans,” NFL’s executive vice president of business, Eric Grubman said.
Approximately $1.3 million fans have already bought tickets for games. Each cancelled game would cost anywhere between $7 and $8 million in refunds. Grubman said that the refund policy would not apply to club seats and suites. The league said that fans would
be refunded no more than 30 days after it is determined how many games would be cancelled next season.
Grubman said that the announcement was intended to reassure fans and make fans much more comfortable about buying tickets knowing that a refund policy was already in place. The league has come under a lot of criticism for its role in the labour dispute.
Denying refunds in case of a lockout would have been an absolute PR and legal nightmare. Announcing a refund policy beforehand buys them much needed good will in case of a lockout.
The announcement of the refunds policy is being touted by the NFLPA as a sign that the league is preparing for a lockout in 2011. “This is consistent with what they've done since 2007 and only confirms their plans,” union spokesman George Atallah said. “It's
just step 24 out of 25 they're taking to prepare for a lockout.” The Union believes that the NFL wants to force a lockout in the 2011 season. The contracts guarantee that the owners would be able to last much longer than the players in case of work stoppage
and would eventually have to give in to the league.
According to the Players Association, the fact that the league has hired labour lawyer Bob Batterman of lockout infamy provides an insight into the league’s intentions. Also the fact that NFL owners have signed multi-billion dollar TV deals which would profit
them with or without an NFL season in 2011 is troubling the union. The Union has pulled out all the stops trying to put pressure on the league. It has been sending lawmakers and government officials letters about the cost of an NFL lockout to individual cities.
Over all it is estimated that a lockout could cost the U.S economy nearly $5 billion in lost revenue. The NFLPA said that even by the most conservative estimates, each city would lose close to $160-$170 million dollars.
The league says that’s baloney. “It is a series of numbers pulled from thin air in a misguided attempt to inject politics into the collective bargaining process,” NFL spokesman Greg Aiello said. Whatever the actual figure, there is no doubt that in case
of a lockout, everyone except the owners, stands to lose and lose a lot.
At the core of the dispute is money. The league wants to keep a larger cut of revenue for itself arguing that costs of building and maintaining stadiums are just too high. The NFL has also set its mind on an 18 game season to boost revenues. The NFLPA does
not want to give in on either front. It asks the league to open up its books to the union and justify its demands for a greater share of the revenue and is not happy with the compensation package the league has offered for an extended regular season.
The negotiations continue.
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