Super Bowl 2012 lockout to cost Indianapolis $200 million
If the National Football League (NFL) and NFL Players Association (NFLPA) are unable to reach a deal on a new Collective Bargaining Agreement, the city of Indianapolis has a lot to lose.
Although the NFL and NFLPA can keep on extending the deadline for a new bargaining agreement, which they have done twice in 24 hours, the preparations for Super Bowl XLVI are still full steam ahead.
“We absolutely mean what we've been saying and that is we believe common sense will prevail,” 2012 host committee chairman Mark Miles said Friday. “If there is a lockout or any other scenario, we're going to try and block that out and have blinders on because
we believe we're going to have a game in 2012.”
With 337 days left until the Super Bowl as of Friday night, the host committee has no choice but to be prepared for the championship scheduled for 5 February, 2012. Some financial advisors estimate that the Super Bowl will bring in about $400 million to
the city of Indianapolis. However, Michael Hicks, professor at Ball State University says that the city would lose more than $200 million if the game is cancelled.
The concerned parties in Indianapolis are tuning into the goings-on in Washington, where the NFLPA, team owners and NFL officials have been meeting to work out a new bargaining agreement. They have recently moved the deadline for a new deal to Friday, 11
February, 2011.
The biggest problem with meetings is that neither side can agree how the League’s revenues should be split. Owners received about $1 billion from the NFL to cover costs, such as construction a new stadium or remodelling their current one. However, owners
are now looking to add $1 billion on top of the previous amount, a total of $2 billion per NFL team.
They are also trying to work out a rookie wage scale, benefits for retired players and owners pushing to shorten the preseason to two games and extend the regular season from 16 to 18 games.
“I think there has been enough discussion, and enough substantive discussion, that the mediator thought it was worth it to keep at it,” NFL lead negotiator Jeff Pash said.
The city of Indianapolis, Indiana was awarded the rights to host the 2012 Super Bowl on 20 May, 2008, the same day that the team owners decided to go against the current Collective Bargaining Agreement, which is why they are doing what they can to settle
a new one now. At that time, the NFL also asked the city of Indy to block out over 18,000 hotel rooms in the area, meaning that there is some flexibility as to when the Super Bowl will be held.
Like many fans, teams and league officials, the city of Indianapolis is waiting on tenterhooks for a resolution to the current labour crisis.
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