Rumors have emerged that both Aaron Rodgers and Caleb Williams were seeking equity in their respective teams. Rodgers, who already owns a share of the Milwaukee Bucks, allegedly attempted to secure New York Jets equity. Similarly, Williams was reportedly interested in obtaining equity to be the first overall pick in the NFL draft. Earlier Tom Brady had tried to buy stakes at the Raiders.
Surprisingly, the NFL owners recently agreed to a measure that would prevent individual owners from giving equity to players or other employees. This decision was inspired by the sale of the Washington Commanders from Dana Snyder to Josh Harris. The topic has raised a few eyebrows, but why is this situation so difficult to handle?
Equity in the NFL: A controversial decision by the league
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The 32 teams of the NFL (worth $143 billion) have agreed unanimously to implement a new ban on owners to give equity to players and employees. The topic was discussed in the latest episode of Pro Football Talk. Show hosts Mike Florio and Chris Simms cited Aaron Rodgers’s example to explain the whole controversial situation.
Mike said, “The owners also approved a measure that prevents owners individually from giving Equity to players or other employees. Clark Hunt, the chairman of the finance committee, wrote a memo that had eight different reasons why that should be the case. And at the end of the day, they weigh the magic wand, and 32 businesses come together to dictate to each of them what they can and can’t do with their Equity.”
The team owners are taking this as a pre-emptive measure to ensure the safety of the league. In the words of Ben Fischer, they have avoided an arms race by crafting a rule for non-equity. But this raises two major legal challenges i.e. Anti-trust laws and Collusion per se.
Challenges in the new ban and NFLPA’s response
Mike raised a point in the show stating the owners of these billion dollars teams could be trusted with the decision of their teams. They are the best judge of the situation. Even NFLPA has no rule restricting owners from giving any equity to players in the Collective Bargaining Agreement (CBA), as long as it does not affect the salary cap.
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The other major issue with providing equity is the transfer of players from one team to the other. Since equity might be considered a part of the pay, it would be difficult to handle the transfer of equity when players change teams, especially during sour endings. Questions have been raised regarding the legality of this decision. If the Collective Bargaining Agreement (CBA) already banned equity for players, did the NFL consult the NFL Players Association (NFLPA) before implementing this rule? Failure to negotiate with the NFLPA could lead to accusations of collusion.
The NFLPA’s response to this decision remains uncertain. The organization has been secretive in the past, but it will be intriguing to see if they challenge the NFL’s decision as an act of collusion.
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While some argue that offering players equity can secure long-term commitments and create a sense of ownership, others worry about potential salary cap issues and the fairness of such arrangements. The NFL’s move to prevent equity for players and employees has certainly ignited controversy. Only time will tell how this decision will impact the league and its relationship with the players.
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