The NFL and the players association delayed the start of free agency from yesterday until Monday, giving them three days to resume collective-bargaining negotiations.
The new deadline created an opportunity for the owners and the union to find common ground, with talks at a critical stage. Unless there is an extension to the current collective-bargaining agreement, the salary cap will be set Monday at US$94.5 million, about US$10 million less than it would be with an extension.
That would force many teams to cut players by 12:01am Monday to get under the salary cap. Many teams would also lack salary-cap room to make attractive offers to free agents.
The owners and the players are surely feeling a sense of urgency, uncertain if the 2006 season will be the final one with a salary cap. The current labor agreement expires after the 2007 season, but that season will be played without a salary cap unless a new agreement is reached. The union's executive director, Gene Upshaw, has insisted that the salary cap will never return once the league reaches an uncapped year.
Negotiations became more tense Thursday morning when the owners held an emergency meeting in Manhattan and voted unanimously to break off talks. Earlier this week, the owners offered the players about 56 percent of gross revenue, but the union sought about 60 percent. Until that gap narrowed, the owners said there was little reason to talk.
"The meeting was short, concise and unanimous," said Jerry Jones, the owner of the Dallas Cowboys, standing in the lobby of the Grand Hyatt in Manhattan, after about a one-hour meeting with Commissioner Paul Tagliabue. "We're all on the same page. The position that's on the table by the players is just not acceptable, and it wasn't acceptable to any of the constituents."
Asked Thursday morning how dire the situation was, Tagliabue said: "It's as dire as dire can be. Without an extension, it's certainly not a good situation for anybody."
But Tagliabue later added, "We're going to go back and talk about next steps."
A few hours later, the delayed start of the new league year was announced, giving a reprieve to general managers who were making plans to announce roster cuts. Teams were allowed to rescind any names that had been submitted Thursday to the waiver wire.
The league did not immediately announce when talks with the union would resume. But when the sides return to bargaining, they will have many issues to resolve.
According to the union, a division among owners regarding revenue sharing has been a major stumbling block in negotiations. At least eight teams with stadium luxury boxes and other locally generated revenue -- Chicago, Cleveland, Dallas, Denver, Houston, New England, Philadelphia and Washington -- produce far more revenue than teams in smaller markets.
"We have to do something that 32 teams can live with," said Lamar Hunt, owner of the Kansas City Chiefs, referring to the entire league.
The owners did not discuss revenue sharing Thursday, saying the percentage of revenue sought by the players was unacceptable.
"The players association has on the table a demand that doesn't recognize the reality of league economics today," Tagliabue said. "In the last half-dozen years, we've created a structure that enabled us to build an unprecedented number of new stadiums, many of them with very large investments by owners. Those stadiums, coupled with our TV revenues, have been the engine that has provided prosperity for the players. The proposal that the players association has on the table basically is kind of a have-your-cake-and-eat-it-too proposal. They want to have all the revenues, but they do not, in any way shape or form, recognize the cost to the owners in building those stadiums."
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