Another NFL offseason, and Vikings fans have many questions: Will Brett Favre return? What will the Vikings go for in the draft? Can we make another run at the championship?
Unfortunately, there is another question that needs to be answered: What happens when supplemental revenue sharing and the salary cap end after this season?
In Minnesota, we're well-versed in the small-market-vs.-big-market debates that have plagued the Twins and Major League Baseball. Every season the Yankees and Red Sox throw around ludicrous amounts of money, effectively spending their way to the playoffs. In the NFL, revenue sharing requires the top 15 revenue-producing teams to distribute money to lower revenue-producing teams. Combined with the salary cap, this prevents certain teams from simply outspending their competition, creating parity within the league. Through revenue sharing, teams like the Vikings have a chance to compete. This system has allowed the NFL to flourish unlike all other professional leagues.
News reports say that the Vikings have received between $15 million and $20 million per season through revenue sharing. As many observers have noted, that figure is coincidentally just enough to cover Brett Favre's contract this season.
So why should we be talking about revenue sharing now? Because the NFL owners are threatening to end it along with the salary cap beginning next season, paving the path toward a lockout in the 2011 season.
As a bar owner in St. Paul who struggled through the 2005 NHL lockout, I saw firsthand what this will mean for local businesses. As a direct result of that lockout, we were forced to lay off 95 percent of our staff. We lost 65 percent of our total revenue for the year. Two days before the NHL announced the end of the work stoppage, our bank called to give us notice that our loan was being foreclosed upon.
The lockout had an impact throughout the community. Every vendor from our T-shirt supplier to our garbage service felt the pinch. We need to make sure that this doesn't happen again.
The NFL owners are in negotiations with the NFL Players Association over a new collective bargaining agreement. Rather than share revenue with other teams, it appears that a few owners want to rewrite the rules governing revenue sharing and the salary cap so they can maintain a disproportionate advantage over other teams. These owners aspire to be the Yankees of the NFL.