The Top 10 Business of Football Stories of the Year
As I often say, the games are just a storefront; the real action of the NFL happens off the field. 2021 was no exception; there were NFL business stories galore. Here are my top 10 for the year:
Gruden Removed; Questions Remain
Out of litigation involving the Washington Football Team emerged a trove of hundreds of thousands of emails. A select few were racist, misogynistic and crude emails from former Raiders coach John Gruden. They led to Gruden being ousted and—there will be lawyers—an inevitable lawsuit by Gruden against the NFL for an alleged coordinated attack to take him out. The emails also returned the negative spotlight to the WFT; a long-running investigation into their toxic workplace concluded last summer without any written report, only an oral presentation to the commissioner. Although fans and media have inevitably moved on to other dramas, Congress is not as compliant. The US House Oversight Committee has demanded answers and accountability in an ongoing investigation. And, of course, the public reputation of WFT owner Daniel Snyder is, well, suboptimal.
Aaron Is Back (No Surprise) and Better than Ever (No Surprise)
While cryptic comments from Aaron Rodgers after last year’s NFC championship game had quieted down, the speculation around his unhappiness did not. It then turned into an all-out media firestorm around April’s draft and continued through August, with breathless reporting about Aaron never playing in Green Bay again. While media speculated and fans photoshopped Aaron in other jerseys—as they earlier did with Deshaun Watson and Russell Wilson—I opined that he was going nowhere: the Packers weren’t trading him (in 2021) and Aaron wasn’t retiring; there were no other options. Of course, Aaron came back, with the concession of a contract void after 2022 (I thought he might get that after 2021) and soft, unwritten assurances that he and the Packers will jointly address the situation after this season. And, as I also predicted, Aaron is having another MVP season (unless his comments regarding the vaccine affect that; it shouldn’t, see below). As for next year, I have maintained all along that he would be traded, and those who said he would be traded in 2021 now disagree with me. There will be plenty of time and columns for this come the offseason. Stay tuned.
So Long, St. Louis; Here’s a Big Check
The four-year litigation brought by the city of St. Louis against the NFL—alleging the league did not follow their own relocation guidelines in their zeal to move the Rams to Los Angeles—was settled. The reported payment to the city, $790 million, is significant (even with roughly $250 million of it going to lawyers), a clear recognition by the league of their vulnerability at trial. Overall, though, this is a win for Rams owner Stan Kroenke and the NFL, as they avoid (1) discovery of confidential and sensitive information, (2) a jury trial in January while the Rams are in the playoffs, (3) a hometown St. Louis jury awarding billions in damages, and (4) granting St. Louis a precious expansion franchise. The NFL paid a handsome cost, but a threat of larger losses has been removed.
Covid Season, Part 2
Remember when the 2020 season was “the COVID year” in the NFL, and the feeling that we were all “past it”? Well, so much for that. Team outbreaks have been happening more than they did in 2020, especially in this latter part of the year as data is showing something we never saw in 2020: high transmission rates within team facilities. Games are being moved within weeks but not (as of this writing) being postponed. The NFL has the week before the Super Bowl to play with, but will only use that as a last resort. And, it seems, testing is now relaxed for vaccinated players without symptoms, a full stop change from previous COVID-19 protocols. It is, to me, a recognition that competitive balance—the mantra of the NFL—is in jeopardy with the previous testing protocols, and since no players are getting seriously ill, the business of the NFL must take precedence. And as you know from this space, the business of sports always wins. As 2021 ends, we are, unfortunately, no closer to playing NFL football—as with other sports and society as a whole—without COVID-19 as part of the story. Speaking of which..
Vaccination Obfuscation
Aaron Rodgers makes his way into this list again, due to a comment from this summer that he will not live down, that he was “immunized” when he was, of course, not vaccinated. When this news surfaced after Aaron tested positive, the public condemnation was swift and exacerbated by Aaron’s comments about the “woke mob” and Joe Rogan. Beyond the Twidicule (which I thought was over the top) the episode exposed an NFL COVID-19 Protocol weakness, with unvaccinated players like Aaron skirting mask protocols in press conferences, a violation for which the Packers ponied up $300,000 (they chose to not alienate their superstar by enforcing the mask requirement). Weeks later, Antonio Brown’s use of a fake vaccination card was exposed by an unpaid chef—one of a long line of people claiming that Brown mistreated them—for which Brown submitted to a three-game suspension, a punishment that would have been a lot more but for Brown’s agreement to forego an appeal. And again, to those questioning the distinction between the two situations: Aaron lied to the media; Brown lied to his team and the league. In both cases, however, the NFL—and the Buccaneers—would have rather not have been exposed for these unenforced protocols.
Deshaun Not Gone
It was certainly an eventful offseason for Deshaun Watson, making headlines first for wanting out of Houston, launching speculation of his next team and fantasy football–like trades. That discontent soon turned to radio silence, with 22 civil complaints and 10 criminal complaints pending against him for sexual misconduct with massage therapists. The NFL has neither suspended Watson nor placed him on the Commissioner Exempt List, and he is still a member of the Texans. The team appears to be paying him as part of an unspoken and quiet agreement for him not to play. The fact that this is not even mentioned by most media, the league or the team is one of the great mysteries of the year.
The Rams’ Great Experiment
While the team’s owner and lawyers have been fighting off St. Louis regarding their overzealous relocation to L.A., the Rams have gone “all-in” on the field. After previously trading two first-round picks for Jalen Ramsey (and one for Brandin Cooks), they traded two more, plus former starting quarterback Jared Goff, for Matthew Stafford. Midseason, they traded their upcoming second and third round picks to Denver for Von Miller (picks the Broncos may need to acquire a certain quarterback mentioned above). While fans and some media love this “win now” strategy, this author has been critical; this is not fantasy football. Not only have the Rams been playing with less than a full deck due to massive dead money charges for players like Cooks ($22 million) and Goff ($24 million), but their lack of future draft picks will leave them without the solid infrastructure that every team needs. We are all—including NFL teams—watching this great experiment to see if “all in” works or eventually becomes “all out.”
The Urban Meyer Error
The Urban Meyer Era became the Urban Meyer Error in Jacksonville. While many have focused on the list of bad decisions that included a lap dance that went viral and allegedly kicking a now-former kicker (Meyer has said the “characterization of me and this incident is completely inaccurate”), my sense from the start is that this relationship was destined to fail. The Jaguars have been an NFL bottom dweller and fixture at the top of the NFL draft. Simply, they needed Meyer, a highly successful college coach, more than Meyer needed them, and the reported contract paying him $10 million or more a year reflected that. Meyer’s attitude and behavior was not going to change with more money and more power, behavior that screamed out: I’m the biggest thing they have going here. Now as the Jaguars are claiming a “for cause” firing that relieves them of the contractual obligations (there will be lawyers). It will be, at best for the team, a highly expensive one-year mistake or one that could set the franchise even further back, costing them tens of millions.
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Pandemic Spending Down, Except for the Patriots and Cowboys
The salary cap was down considerably in 2021 due to NFL revenues being off roughly $3 billion in 2020, a year with few fans in stadiums. The 2021 free agency period, however, was similar to all free agency periods: a few golden ticket winners and musical chairs after that. The Patriots’ spending was way out of character, overpaying with pre-pandemic retail prices for a couple of tight ends (Jonnu Smith and Hunter Henry), wide receivers (Nelson Agholor and Kendrick Bourne) and an edge defender (Matthew Judon) among their free-agent haul. As for other 2021 player spending, it was notable that of the three young quarterbacks from the 2018 draft who are eligible for extensions—Baker Mayfield, Lamar Jackson and Josh Allen—only Allen received a deal, and it is one that ties him to Buffalo for a team-friendly eight seasons. Mayfield and Allen continue to play on their undervalued rookie contracts. Finally, Dak Prescott, coming off a severe injury, signed what I think is the best contract ever for a young quarterback, one with a $40 million average and, more importantly, only a four-year term, setting him up for even greater riches to come.
Stunning—Even for the NFL—Media Deals
There is no more accurate reading of the health of a sports league than the strength of their media contracts, and the NFL is king once again. NFL owners were strategic—some would say diabolical—in preparing for these deals by getting their labor deal done first. They leveraged the players’ union into giving them the two things they needed for the networks: (1) labor peace, and (2) a 17th game of inventory. Armed with those weapons, NFL owners negotiated with ESPN/FOX/NBC/CBS and Amazon to the astonishing tune of $110 billion (yes, with a b) of national media revenue over the next 11 years. Not only does this nearly double the overall value of the existing deals, but they are not done yet. The expiring DIRECTV deal is still in play and there is talk of selling off 49% of NFL Network and NFL Media for what will certainly be an eye-popping number. These deals may look like crazy ones for the networks to pay in this age of fragmented viewing, but seeing the ratings—the Cowboys-Raiders flag-fest on Thanksgiving drew over 30 million viewers—they may look like good deals for the networks in a few years. And, oh yes, the NFL has an out after seven years.
You know my mantra: the business of the NFL always wins.
I enjoy all the kind comments from readers of this space and taking you behind the curtain of the big business of football. Have a wonderful holiday season; see you here next year!
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