Management Analysis: Labor Relations & Disputes in Sports Leagues

This essay provides an analysis of labor relations issues in professional sports leagues, specifically focusing on the National Football League (NFL) and the National Basketball Association (NBA). It highlights key issues such as revenue sharing, player salaries, and salary caps that led to significant labor disputes, including lockouts and strikes. The essay compares and contrasts the role and effectiveness of player unions like the NFLPA and NBPA in addressing these issues, noting their successes in establishing minimum salary scales and securing better deals for players, as well as their weaknesses in mitigating opportunity costs during strikes. The analysis also points out differences in negotiating collective bargaining agreements, securing revenue percentages, and garnering fan support between the two unions.

Running header: Management 1
Management
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1. Labor relations issues in professional sports leagues.
National Football League: 1982
Key issue: Revenue sharing and player salaries.
In 1982, for 57 straight days, the NFL owners locked out the NFL players since they
could not agree to the demands the players (CNBC Sport, 2019). The NFL season wasted away
with the players and management sticking their tongues out at each other. The NFLPA organized
a strike so that the player’s demand of getting 55% share of the league gross revenue could go
through. According to the players, they were not being paid well even though they were being
called professional ballplayers. Besides, they did not receive good pensions as well as overall
benefits (Wojciechowski, 1987). However, the owners told the players to take a hike since they
were not ready to listen to them. In September 1982, a new agreement was arrived at between the
NFL owners and the NFLPA. The commissioner at that time, Pete Rozelle instituted a 16-team
playoff instead of the normal 10-team playoff (CNBC Sport, 2019). In addition, the CBA was
revised; hence all NFL contracts were negotiated, and player salaries, expenses, and
remunerations were increased and later became public.
National Basketball league: 1998 to 1999
Key issue: Cap on maximum player salaries.
The 1998/1999 NBA lockout was the 3rd lockout in the NBA history ever to occur. The
lockout was as a result of the National Basketball Players Association asking for a raise for the
NBA players who earned the least amount of salary in the league (Justallstar.com, 2019).
However, the NBA owners and the NBPA failed to reach an amicable agreement, and therefore,
the owners began the lockout. Sports fans criticized the dispute as well as media members. The
dispute continued into January 1999 with the NBA owners threatening to cancel the entire
season. However, in early January 1999, the players and owners reached a settlement which
allowed a fifty-game season to commence at the end of the month. The salary cap was raised
from 48% to 51% as well as all players were guaranteed of 57% of the total league’s revenue
(Ferringo, 2005)

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2. Comparison and contrast on the role and effectiveness of the player union in
addressing the issues.
Comparison.
To begin with, both the NFLPA and NBPA strived to get better deals for the players
without giving in to the lockout pressure from the owners. This shows their relentlessness in
ensuring the player's demands are met as well the owners do not take advantage of the naïve
players. Secondly, both the unions managed to established a minimum salary scale that
guaranteed players a certain amount of pay in regards to medical benefits, years of service,
retirement benefits, and insurance. Lastly, both the unions were weak in securing professional
athletes opportunity costs during the strikes since their salaries were affected as well as their
opportunity to play. Therefore, the owners took advantage of this loophole.
Contrast.
To begin with, the NBPA was better off than the NFLPA in negotiating for the CBA
since the NBA was guaranteed that the players would receive about 57% of the total leagues’
revenue hence ensuring the players get better returns. On the other hand, the NFLPA only
secured only 55%. Secondly, NBPA also focused on the rookies thereby also securing a better
deal for them. On the other hand, the NFLPA focused on the established player's salaries; hence
they never secured a better deal for their rookies. Lastly, the NBPA got support from fans to
push on the dispute while the NFLPA were on their own. This demonstrated that the NBPA had
a good connection with fans.

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References
CNBC Sport. (2019). Sports lockouts and labor disputes. Retrieved from
https://www.nbcsports.com/sports-lockouts-and-labor-disputes#slide-6
Ferringo, R. (2005). Labor Issues and The Four Major Sports Leagues. Retrieved from
https://www.docsports.com/labor-and-pro-sports.html
Justallstar.com. (2019). 1999 NBA-ALL STAR LOCKOUT. Retrieved from
https://www.justallstar.com/nba-all-star-game/event-1999/
Wojciechowski, G. (1987). NFL STRIKE: 1982: A History Lesson Not Learned. Retrieved from
http://articles.latimes.com/1987-09-23/sports/sp-6303_1_nfl-strike