New York Jets, Kansas City Chiefs preparing to cut costs during lockout
National Football League (NFL) employees who were given contracts after 2007 have had lockout clauses inserted into their deals.
Employees could face 25 percent cuts in their salaries in the first 90 days of a lockout, and as much as 50 percent cuts if the lockout lasts for more than 90 days. If the lockout doesn’t end within six months, clubs will have the right to terminate employment.
Individual NFL clubs will have the right to decide whether or not they want to make use of those clauses if there is a lockout after 3rd March, when the current labour deal expires. The New York Jets and Kansas City Chiefs are making preparations
to make use of those contract provisions to cut costs. Other teams might soon follow suit.
If no games are lost during the 2011 season, coaches and other contracted employees will recoup lost wages. If on the other hand, the regular season is disrupted by the lockout, wages will be permanently lost and teams might even begin terminating employees.
A spokesman for the New York Jets said, “While we fully expect the 2011 season to proceed as planned, we do have contingency plans in place that touch everyone in the organisation.”
Jets head coach, Rex Ryan and his assistants could also fall victim to the lockout.
The measure could also be applied to NFL scouts. Many scouts in the league fear that their salaries would be the first to be drastically cut once this April’s draft concludes. Jets owner Woody Johnson tried to reassure employees that no particular segment
of the organisation would be in focus but that will come as little comfort to employees who face pay cuts.
The Jets are also expected to furlough employees as the lockout begins. The club’s business side employees will be forced to take a week of unpaid leave each month for as long as the lockout goes on. “This plan is about shared sacrifice across the organisation
to get through a period of uncertainty,” Executive Vice President of business operations, Matt Higgins said regarding the proposed furloughs.
Reports from persons familiar with the situation have suggested that the Kansas City Chiefs will not furlough employees. Kansas City’s employees with the highest pays will face the greatest salary reductions. Average salaries would be cut by around 10 percent
and even the greatest salary reduction would be less than 20 percent. Not unlike the Jets, the Kansas City Chiefs will also reimburse their employees if no games are lost due to the lockout.
However, not all teams are expected to make such changes. The New York Giants, for instance, have reassured employees that they will not be hit by cost cutting measures. The Chicago Bears have also said that they will continue into the lockout as business
as usual.
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