Sven
Norm Smith Medallist
Re: NFL Lockout 'A Certainty'
One for the legal boffins....
http://www.bizoffootball.com/index....court&catid=44:articles-and-opinion&Itemid=61
One for the legal boffins....
http://www.bizoffootball.com/index....court&catid=44:articles-and-opinion&Itemid=61
A large part of the battle has been over the NFL’s instance that they legally do not have to release financial information showing that they are seeing a cash flow decline, hence their want for approx. $1 billion more in expense credits for things like new stadium development.
In the meantime, the NBA, who sees their labor agreement expire on June 30, has released their audited financial information to the NBPA saying they are losing money.
So what’s the difference?
Notice that the NFL is saying they are in a “cash flow decline” while the NBA is saying they are “running at a loss.” The difference between the two is significant and the Supreme Court’s ruling on a labor case from the 1950s plays a role in the matter.
In 1956, a landmark case went before the highest court in the US in Labor Board v. Truitt Manuf. The Syllabus for that case reads:
In the circumstances of this case, where the employer claimed that it could not afford to pay higher wages but refused the union's request to produce financial data to substantiate this claim, the National Labor Relations Board was justified in finding that the employer had not bargained in good faith and, therefore, had violated § 8(a)(5) of the National Labor Relations Act.
{…]
The question presented by this case is whether the National Labor Relations Board may find that an employer has not bargained in good faith where the employer claims it cannot afford to pay higher wages but refuses requests to produce information substantiating its claim.
The Supreme Court ruled in favor of the NLRB, with Justice Black delivering the opinion saying in part:
We think that, in determining whether the obligation of good faith bargaining has been met, the Board has a right to consider an employer's refusal to give information about its financial status. While Congress did not compel agreement between employers and bargaining representatives, it did require collective bargaining in the hope that agreements would result. Section 204(a)(1) of the Act admonishes both employers and employees to "exert every reasonable effort to make and maintain agreements concerning rates of pay, hours, and working conditions. . . ."
This key ruling is why when the NBA says that they “in a decline” or “losing money” they are compelled to release financial information to the NBPA -- the union for the NBA's players -- to prove as such. Since the NFL is not saying that – they are profiting but seeing cash flow declines – they are not compelled to release financial information to the NFLPA, the union for the NFL's players.
Which is why Jeff Pash filed this within the NFL’s charges that the NFLPA is conducting unfair labor practices (see Complete Text of NFL Charges Against NFLPA for Unfair Labor Practices):
More specifically, since the commencement of formal negotiations, the NFLPA has engaged in a course of conduct calculated to avoid reaching an agreement with the NFLMC by, inter ali …. insisting upon disclosure of financial data to which the NFLPA has no legal right and then suspended negotiations unless and until such data is produced by the NFLMC…
So, when looking at the NBA and NFL labor battles, one of the biggest issues revolves around how the Supreme Court ruled in the 1950s and why the NBPA is now looking at financial data from the NBA, while the NFLPA is on the outside looking in at the NFL’s financial information: one is saying they are losing money (the NBA), while the other is not (the NFL).





