No Good Can From It All …. When You Get Congress To Intervene In Sports With Regard To Labor Unrest …………..
Am I completely mistaken but isn’t the US Congress meant to intervene in labor disputes that are of national security or when it comes sensitive areas within the US economy ? Then why oh why is that we’re now seeing both sides of the NFL hierarchy under its Commissioner Roger Goodell, as well as the NFLPA (Union) convening with Congress up on Capitol Hill, in order to get them to mediate or at least in part be an arbitrator in their ongoing unrest with regard to the present ‘collective bargaining agreement ? Having Congress intervene in this is akin to witnessing the idiocy of the legislation passed with regard to the ‘stimulus bil’l. Which has so far cost the taxpayers $787 billion at last count. Never mind the fact that both GM and Chrysler had a piece of the ‘proverbial pie’. And the public in general has yet to see anything tangible from this all.
DeMaurice Smith, Executive Director of the NFLPA is itching for a confrontation with his counterpart, Roger Goodell. And with the owners having opted out of the present collective bargaining agreement. It will now create a chasm whereby the 2010-11 season will become one , that is an uncapped season. Now what this does around the NFL, may well give the suggestion that both sides do indeed know exactly what they’re doing. But it is becoming increasingly clear that this has nothing to do with the agreement itself but more to do with who maintains the balance of power within the NFL. It is more to do with who controls the purse strings as to the $ 8.7 billion a year industry that the NFL is said to to represent globally in terms of the NFL’s business interests. A tidy sum to say the very least and with the greed of both sides said to be unabated . I’m guessing that this could very well lead to one of those confrontations up there on Capitol Hill that will have more to do with posturing by not only the NFL hierarchy and the unions. But also from the legislators who are empaneled on the House Judiciary Committee and who are hearing from both sides on the issue. With the meetings likely to be carried by C-Span , it should make for some very interesting viewing.
Courtesy of The New York Times
By Judy Battista , The New York Times
The Giants co-owner John Mara said Tuesday he was resigned to an uncapped season in 2010 and thought the union and owners might be moving further apart in talks toward a new labor agreement.
Mara was one of the owners who took part in the 11th negotiating session with union leaders in Washington on Tuesday. He is the first owner to speak extensively since negotiations began.
An uncapped year would have no salary limits or floors for teams and would begin in March. It would also start the clock ticking toward a lockout starting in March 2011.
Mara said he still had hope that a lockout could be averted.
“I don’t think we’re making any progress,” Mara said in a telephone interview. “We made a proposal in early November. I don’t think we’ve received a meaningful counterproposal. The point that we try to make to them is that the costs and risks are much greater than they ever have been. Especially in this economy. I don’t think there has been enough of a recognition on their part of that concept.”
To read Judy Battista’s article in its entirety just click on
the link provided
There’s no doubt in my mind that the NFL as well as the union are looking to usurp each others’ powers as much as they can. It’s not as if either side has the fan’s best interests at heart to begin with. Goodell for his part wants to prove to the fans and public in general that he’s a strong and very determined commissioner. His sometime autocratic rule has chafed the rationale of Smith and it has to be said that DeMaurice Smith does have some reason to feel aggrieved with many of Goodell’s findings and edicts , as of late. How this all will play out also, may well have to do with who wields the ‘biggest stick’ at the end of the day. Both sides no doubt have their lobbyists up there on Capitol Hill, who are hard at work trying to lay out the case for their client. As to why ‘both’ the NFL and NFLPA should see fit to have lobbyists working on their behalf in Washington , merely suggests that this has more to do with being seen to have the power to get legislation passed that is of benefit to each of the respective parties in question. And for the NFL this amounts to their anti-trust exemption status.
Is it me but are the members of the House Judiciary Committee such a dull and boring group of individuals ? Perhaps none more so than the committee chairman himself, Rep. John Conyers Jr. (D-Mich) .This guy makes Pat Robertson seem like a lively, well versed intellectual and then some !. But then again, that’s not saying much about Robertson , given his ‘vile remarks’ aimed towards the Haitian people in the aftermath of the recent earthquake there. Hopefully there’s a f_cking hot place in hell waiting for his racially bigoted a_s !
All of the posturing in the world won’t help change anything if neither side is willing to acquiesce to the others’ wishes . As to what Congress, in this case can do to ramp down the rhetoric between the two sides and force an agreement that is equitable for both parties remains to be seen. I’d certainly like to think that there are far more important domestic issues that need to be addressed , rather than seeing the House Judiciary Committee meet with two sides who are more self absorbed about their own PR images than they are about getting things done. And at the same I’d certainly like to think that DeMaurice Smith can be proactive in addressing the issue as to the conduct of his members. Especially in the case of their off the field behavior. For the NFL and in particular the owners , theirs now is a thankless task as they seemingly don’t viewed as being greedy . But yet with this lone move in the rescinding of an agreement that they’ve failed to honor. How must it look to the fans and general public to begin with ? Surely the owners and the Goodell’s office had to have foreseen that there would be an economic downturn of sorts ? Never mind how acute it has now become. It’s all about planning and getting your ducks all lined up in a row. Instead they’ve feasted on the largess of the fans and the public over the years while growing extremely wealthy from all of their business dealings and maneuvers. The average value of an NFL franchise has increased exponentially over the last decade. In fact it has increased in excess of 25 % over that period. Pardon me for saying this but if they’re now claiming poverty then there’s something indeed wrong with the business template under which the NFL now works .
In November of last year, I wrote an article entitled ‘Trust Me I’m A Doctor …………It’s Money For Nothing And The Chicks Are Free’ ! The piece in question, went on to suggest how I felt that many of the US owners who had made the foray into owning an English soccer club within the Premiership (EPL), were in fact no better than that of disgraced financiers Bernie Madoff and Allen Stanford. In each case it has led to the demise of their respective financial empires and the loss of untold billions of dollars for their prospective clients. Madoff was sentenced to 150 years in prison, while Stanford awaits trial through the US Federal Court System.
It has been well chronicled that the Glazer family having bought Premiership side Manchester United had hoped to carry on the same undoubted success the team has come to be known for over the past quarter of a century. Their unparalleled success with manager, Sir Alex Ferguson at the helm has made the team ‘the most glamorous and most valuable sports franchise in the world’ .
Initially the purchase was met with a great deal of skepticism and the fact that the family used very little money of their own in the purchase, should’ve been enough of an indication that they were being capricious and overwhelmingly disingenuous as to their overall intentions concerning the team. They leveraged the team buy borrowing against its assets in order to facilitate the purchase . The price at the time was in excess of $1.255 billion including fees. Four years on into the ownership by the family , ticket prices have risen in excess of 45% and the team is laden with a debt in excess of $1.11 billion . As to what that would suggest as to the business acumen of the family , is that they’re nowhere competent enough to be running a sports franchise. With Malcolm Glazer, as the patriarch now handing over the reins of running the club to his sons, Byran , Joel and Avram Glazer. It was felt their custodianship of the club would be in safe hands. At this juncture that doesn’t appear to be the case at all.
United manager, Sir Alex Ferguson seen here in a CNN interview discussing his famed managerial career. Ferguson is the most successful soccer coach in Premiership history. Prior to his ascending to the position as manager on Manchester United , he also assembled a successful resume’ as coach of Scottish Premier League team Aberdeen FC.
Courtesy of The Guardian UK
The Glazer family’s attempt to raise money to pay off massive debts paints a bleak picture of Manchester United’s future
By David Conn , The Guardian
When navigating the thunderously depressing proposal by the Glazer family to load Manchester United with £500m of debt for the third time since their takeover in May 2005, it helps to imagine where United might be had the Glazers never turned up in the first place, to buy the glory, glory club with all their borrowed millions.
Before engaging with Sir Alex Ferguson’s remarkable contention that United’s finances, laden with borrowings over £700m and £67m interest payable last year, are “of no concern at all”, recall what the United board itself said at the time. When Malcolm Glazer and his six children – who, we now know, have borrowed £10m from United – launched their takeover bid, the board, which included the current chief executive David Gill, expressed vehement opposition to it.
Echoing the concerns of the well-informed United fans’ campaign, the board warned that the Glazers’ business plan was “aggressive”, and that the proposed structure for the club “still contains more leverage [debt] than the board would consider prudent and that as a consequence there is likely to be significant financial strain on the business.”
Despite that, the Glazers bought the club for £810m, a fortune pocketed greedily by enough shareholders in what was then Manchester United plc. The Glazers paid £270m themselves, borrowing the other £540m from banks and hedge funds. In the four years up to the latest accounts to 30 June 2009, United became liable to pay more than £325m in interest alone, yet the interest they have not paid, plus fees, has increased the debt the Glazers loaded on to United to £700m.
United, and Ferguson, now argue it is all fine, the club are not constrained by that debt mountain and the board was therefore wrong in its warning back then. Ferguson said last week that the windfall from the £81m sale of Cristiano Ronaldo is there for him to spend, but he does not want to because the market is overpriced. That assertion has been rather undone by the prospectus, which sets out the plan to transfer £70m cash from United to one of the Glazers’ holding companies, partly to pay off the hedge funds which charge swingeing 14.25% interest.
Now imagine how United might look without the Glazer debt. True, as a plc – the Stock Market listing which football executives now agree was a failed experiment, despite defending it zealously at the time – United paid dividends to shareholders. Yet even allowing for the increase in turnover, from £171m to the most recent £278m, the 2004 dividend was £7m, nothing like the mountain of interest, £42m to banks, £25m to hedge funds, with which the Glazers have burdened United.
In order to read David Conn’s article in its entirety
just click on the link provided
With the team now ‘hemorrhaging red ink’ all over its balance sheet , it has to be said that the Glazers have been completely inept in their running of the team. On the field they still continue to have success but there mere thought that they’re now being brought to brink of bankruptcy is enough to send shivers down the spine of entire Premiership (EPL). Never mind the fact that the family’s other sporting interest, the Tampa Bay Buccaneers is now undergoing a change in its persona as well as in terms of its executive and coaching structure. First time GM, Mark Dominik and coach Raheem Morris have been thrust into the deep end . With the firing of their predecessors Bruce Allen and Jon Gruden. The team underwent a less than stellar season in the NFL, posting a 3-13 record in the NFC South. And with the front office being reluctant to spend money in attracting talent to the team . It is understandable why the franchise is now in such a dire predicament. They aren’t in the slightest bit interested in being a serious contender within the NFL and both Morris and Dominik are merely paying lip service with their inane comments to begin with. They’re fully aware as to the financial dilemma and maelstrom that the organization is now in. The Glazers will do whatever they can to ‘pay the piper’ in order to try and stave off financial bankruptcy. They have been far too secretive as to their financial dealings and their present situation.
The latest ploy by the Glazers initiated by Malcolm’s sons, is have a bond issue, in order to pay off some of the mounting debt and accruing interest that’s owed to their creditors. But herein lies the rub, the family is asking that United players participate in the exercise in order to show good faith, to try to elicit fans, as well as members of the public and public institutions into entering the endeavor. If they can’t be trusted to keep the club in a healthy financial state then why should it be incumbent on the players to participate in this maneuver ? If anything Bryan, Joel and Avram are looking to save their own asses as they to try not to embarrass the family any further with the sheer ineptitude shown by them when it comes to their financial dealings and business acumen, as it not only relates to the soccer club but also to their NFL franchise.
It is hoped that the NFL hierarchy as well its board of governors are keeping a watchful eye on the Glazer family and their dealing with both sport’s franchises within their custodianship . If one should fail then there’s no reason to believe why the other can’t be placed in a similar predicament.
In order to read ‘Trust Me I’m A Doctor ……It’s Money For Nothing And The Chicks Are Free’ ….click here.