I think at this point, it's reasonably well known that the NFL will soon be laying off 150 employees, or nearly 15% of their workforce. Unfortunately for me, that doesn't include JaMarcus Russell. Most people assume these cuts are because the NFL is struggling as well during this tough economic climate. However, that's not the case at all. In fact, the NFL is doing just as well as it ever has. It's still highly profitable and even able to do things you wouldn't expect. Like just recently, despite the current economic state of the country, the league was able to get Under Armour to fork over $4 million to be the official sponsor of the NFL Scouting Combine in Indianapolis in February. That's roughly $3 million more than Reebok paid to sponsor the combine last year. Tough times indeed.
Now, it's certainly true that advertising dollars and marketing deals may shrink a bit as the recession worsens, but is it really necessary to cut 150 jobs right now because of that? It really doesn't seem so.
And there are some NFL staffers who think it's nuts too.
"We're operating like we're going bankrupt," one NFL executive said. "Besides the job cuts, they're talking about a hiring freeze and things as insignificant as reducing the size of media guides and not letting low-level staffers bring their significant others to the Super Bowl and league meetings. It's absolutely crazy."
Keep in mind, this is the same league that also feels it's necessary to have league meetings at overpriced resorts like the Breakers in Palm Beach, Fla., or the Biltmore in Arizona or the Ritz Carlton in Maui.
In fact, the scary thing is that the NFL has been downsizing for the better part of 3 years now despite huge profits. The economic crisis just seems to be an excuse to do it more drastically.
The whole reason for this is of course the obvious. The owners want more money. They don't really need to be doing what they're doing here. Money is also the reason behind why Roger Goodell and the owners have complained about rookie contracts. The league could be making more money if it didn't have to sign guys like Russell to a $60 million contract when he hasn't played a down of football.
This is just another reminder to everyone out there that these leagues, the NFL, MLB, etc,, are businesses. And they're blood-thirsty businesses as well. They'll look to screw not only their athletes to make a buck, they'll often do the exact same thing to their employees as well.
So when you hear Roger Goodell say this about the job cuts "I would like to be able to report that we are immune to the troubles around us, but we are not," know that he's lying to you. After all, his job is essentially to represent the owners. The NFL is one of the most profitable businesses in America and they're not struggling at all. Instead, they're just using the economic downturn as an exuse to line the owners' pockets with more money. Even if that means ruining the lives of a number of their employees in the process.
NFL is not poor, and layoffs are in poor taste [Philadelphia Daily News]
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