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NFLPA claims NFL short-changed players out of $120 million
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NFLPA claims NFL short-changed players out of $120 million

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The NFL ‘got caught,’ NFLPA executive director DeMaurice Smith said of the misappropriation of funds from ticket sales.Seth Wenig/AP

The NFL ‘got caught,’ NFLPA executive director DeMaurice Smith said of the misappropriation of funds from ticket sales.

The NFL was caught red-handed withholding millions from its players and will have to return the money it owes, according to the NFLPA.

Arbitrator Stephen Burbank ruled last week that the league mischaracterized gate revenue, which the NFLPA says is about $120 million over the last three years, and falsely exempted it from the pool of money it shares with the players The end result is that about $50 million which should have gone to the players never did. The ruling was first reported by the Wall Street Journal.

Considering that NFL players already get paid less than their MLB and NBA brethren while playing a much more dangerous sport, this can’t make them happy.  

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The NFL and its players split some of the revenue streams that the league generates. For example, under the current CBA the players receive 40% of local revenue (like ticket sales), 45% of postseason revenue and 55% of league media revenue. Some revenue, like from PSLs, are exempt in order to help fund stadiums, but according to the NFLPA, the money in this case was regular gate revenue that should have been contributed to pool for players.

“That was never the deal,” NFLPA attorney Jeffrey Kessler said in a phone interview with the Daily News. “The deal was we weren’t going to give up regular seat revenue.”

League spokesman Brian McCarthy told the Wall Street Journal that the matter was a “technical accounting issue under the CBA involving the funding of stadium construction and renovation projects.” The league did not respond when asked for further comment. 

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Part of the union’s frustration is that they say once the “waived gate” revenue error was pointed out to the league, the NFL continued to fight them on it.

“If their goal is to win the trust of the players, if their goal is to restore credibility where they have all sorts of credibility issues with the players, you think … they would say you don’t have to go to arbitration,” Kessler said.

“For every inch of turf they make the players fight,” the lawyer added.

Kessler noted that this case was the first time he can remember an arbitrator rule from the bench, rather than wait to issue a written ruling. He felt that indicated how cut-and-dry the case was.

The 2016 salary cap could rise by as much as $2 million per team as a result of the ruling, according to ESPN. 

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