Dave Pear's Blog

A little history lesson and my jog down memory lane that others also might not have known:

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Economics 201 says that all businesses are valued on a cash flow basis thus valuations are set BASED ON SAID CASH FLOW… now let’s look at some simple FACTS:

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1. In 1986, John Mecom sold the New Orleans Saints for $65 million;
2. Prior to 1987, the NFLPA never had the “big bucks” to launch a big legal fight because the dues collected from the players prevented it due to meager salaries… but in 1987, the NFLPA told Topps Bubble Gum “$20 million for players’ rights (PREVIOUSLY FREE) on your bubble gum cards or up-and-comer Scoreboard Bubble Gum would…” They paid and the cash needed to launch a legal fight was now in hand;
3. The NFLPA then took said $20 million and hired a huge law firm and sued the NFL owners on the legality of the draft (aka indentured AND AN OBVIOUS VIOLATION OF THE ANTITRUST LAWS OF THIS COUNTRY). You see, the owners have always lobbied the politicians and they have always obliged the owners and changed the laws for the greater good (aka redistribution of wealth). Screw the players for the “common good.” (Geez – will it ever stop? No, it won’t.)
4. The NFLPA eventually won 14 consecutive lawsuits on said illegality;
5. NFL owners’ lawyers advised the owners: You’d better settle because to continue could BE VERY COSTLY and you WILL lose the draft and all control of your “feeder stock” (that would be us – the players );
6. Then the owners cut a deal with the players and made a HUGE increase in players’ salaries (many got several hundred % increases which have evolved to what is being enjoyed today by current players). Obviously, Upshaw never even said sorry to all of you guys who built this game and only let the active players “eat from the plate.” (Damn, retiring in 1985, I missed the big bucks! But if I had been really smart, I would have invented the Internet – LOL!);
7. One example: In a matter of days, Reggie White left Philly at $400,000 a year and went to Green Bay for $3.5 million a year;
8. Over the next 15 years, even while paying this HUGE money in salaries (compared to before the lawsuits) to hundreds and hundreds of players, a guy in Houston now owns the Texans which are now worth $965 million (Forbes annual estimate)! A $900 MILLION DOLLAR INCREASE, ALL WHILE PAYING SEVERAL HUNDRED PERCENT MORE IN SALARY TO PLAYERS! Imagine that!

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Aside from all the historical stuff associated with July 4th, it’s also now becoming internationally known as the Annual Nathan’s Hot Dog Eating Contest on Coney Island, New York. Since 2001, Japanese “Power Eater” Takeru Kobayashi has walked away with first prize 6 times for the most hot dogs eaten. He first won top prize in 2001 for devouring 50 hot dogs in 12 minutes! What’s amazing about Kobayashi is that he stands at 5′-7″ tall and weighs a mere 132 pounds.

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But this year, he made headlines not for participating in the competition (he didn’t compete); instead he was actually arrested and hauled off (and subsequently released the following morning) by New York’s finest for trying to go up on the stage in protest. He didn’t sign up for this year’s competition because of a contractual change: The MLE (Major League Eating!??) wanted him to sign an exclusive contract with them and he objected on the grounds that it restricted his freedom to participate in other eating contests around the world (and it was reported the MLE also wanted a cut of his appearance earnings too -  sound familiar?). You REALLY can’t make this stuff up!

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You can read more of the basic news story on Huffington Post – click HERE.

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First item is one final reminder to get your paperwork sent in to Garden City Group to claim your piece of the GLA settlement lawsuit. If your name is on the list and you don’t have your paperwork, you’ll need to call them immediately (866) 697-5552 and leave a message with your number – they will get back to you quickly. Have them fax it to you so you can get that paperwork postmarked no later than Feb. 9, 2010 to qualify for your first of two checks. Click HERE to find the information and phone numbers that you need.

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Over Super Bowl weekend, we also quietly posted a free viewing of the documentary Blood Equity on this site as well as the Football Summit blog. 15-year NFL veteran & 3 time Super Bowl Champion, Roman Phifer produced this film about life after football as most players live it. Click HERE to get to that post so you can watch it in its entirety online! Of course, the producers couldn’t get permission to use any actual NFL footage because of the subject so you won’t see any on-the-field material anywhere in this film.

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And George Visger had an interview with CNN’s Stephanie Smith that aired on Friday before the Super Bowl weekend:

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The Supreme Court is hearing a major business case this week that debates the extent of its so-called “limited” antitrust exemption. The case is American Needle vs. NFL and if you’re like most of us, it’s hard to understand the details and importance of what ruling might come out of this case. A small clothing manufacturer – American Needle – was kicked to the curb when they lost their license to manufacture caps and jackets with NFL team logos. Reebok – a subsidiary of global athletic wear manufacturer Adidas – currently has the world rights to manufacture any and all licensed NFL wear and oversees a $3.2 billion+ market (2007) from selling NFL gear exclusively.

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On one hand, you have the NFL licensing broadcast rights to any and every channel – cable, satellite or even online – who wants to broadcast their games. Then on the other hand, they chose to go with one manufacturer to produce all NFL-branded clothing and gear. Does that even make any business sense or does someone have side benefits from this exclusive relationship? If the League (and its owners) actually manage to succeed in extending their monopolistic antitrust franchise, will it be placing too much power and control in their hands? And what consequences will that have on other sports leagues who are obviously watching this case with great interest? And how about other global corporations that are also benefiting from antitrust exemptions?

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Here’s a short video clip from ESPN that summarizes it in under 3 minutes if you don’t want to read about it:

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