Thesis comp

Competitive Balance In The Game Of Inches

Competitive Balance In The Game Of Inches:
The Driving Force Behind The NFL

Christopher Ostrow

SPG 502 Thesis
St. Johns University
Professor Gerstner
November 18th, 2011

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Introduction

The purpose of my study is to show how the NFL‟s commitment to achieving

competitive balance is the driving force behind its success. In my study I intend to prove what

makes the NFL the most profitable of the four American professional sports leagues is

competitive balance. I intend to show all the steps the NFL takes to achieve competitive balance.

Ultimately I am going to prove how competitive balance is the key factor in making the NFL the

most successful of the four major professional sports leagues.

Success is measured by many different components. Opinions on success may vary from

person to person. In my opinion, success is measured by the amount of revenue a team, a

franchise, and an owner generate. The National Football League produces the most revenue out

of all the four professional sports leagues, and I will prove that is success is a direct result of

competitive balance.

A league with good competitive balance occurs when teams are of equal strength to one

another. With competitive balance the outcome of the games are often unpredictable. A league

that has undesirable or poor competitive balance is a league that has the same playoff

contender‟s each year. Poor competitive balanced leagues are frequently dominated by

dynasties. Other professional sports leagues have been said to be predictable due to an

unbalanced distribution of strength, power, and economic assets.

If you were to interview any of the commissioners of the four professional sports leagues

in the United States they would tell you it is theredream to have all teams with the same

opportunity to win each game. With more teams in the playoff race at the end of the season,

more tickets will be sold and more attention from the media and fans will be given to that sport.

In my study I plan to prove that the separation between all NFL teams statistically are not as far

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off as many may believe. In the words of Bert Bell former NFL commissioner “If the fans knew

the outcome of the game before kickoff, it‟sgoing to be rather difficult to fill the stadium.” (Yost,

2006). This is key to the NFLs being the most successful league both on and off the field.

Abstract

Competitive balance in sports is the measurement of the equality of play between teams.

The principle of competitive balance is that prior to the start of the contest fans has less of a pre-

conceived notion of who is going to win. While fans of teams want their teams to always win the

danger of losing is always looming when the competition is on equal footing. Competitive

Balance in sports is important because it garners fan interest, media coverage, and creates for

compelling television. This all equals revenue, which I have found to be the key ingredient

behind the NFLs successful business model. One that I am going to prove has been based off

competitive balance over the past 70 years.

My research has determined that the NFLs draft, free agency model, schedule creation

process, revenue sharing, playoff structure, standings, rules, financial results are all based on

competitive balance both on and off the field. This research is important since the NFL is the

most successful professional sports league in America and uncovering what makes it the most

successful league is key for members of the sports management field. My investigation was

taken by research of teams who qualified for the playoffs; super bowl participants team

financials, and gaining a true understanding of how the NFLs business structure works.

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Context

A- Research Methods

B- Free Agency and the Salary Cap, page

C- Competition, page

D- The NFL Draft, page

E- The Playoffs and The Super Bowl, page

F- Super Bowl Results & Attendance, page

G- Playoff Participants, page

H- Schedule, page

I- Competitive Balance in the NFL, page

J- Coaching Philosophies, page

K- Rules and Regulations, page

L- Financials: Teams Valuation: Revenue, Operating Income, and Value page

M- Financials: Revenue- Shared and Unshared, page

N- Financials: Television, page

O- The Impact of Fantasy Football

P- Empirical Results: Competitive Balance Survey, page

Q- Interview: Ernie Palladino (Beat Writer New York Giants) Page

R- Interview: Jamey Eisenberg (CBS Sports) Page

S- Interview: Matthew Gulino (Staten Island Yankees) Page

T- Conclusion, page

U- Limitations, page

V- Future Considerations, page

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W- References, page

Research Methods

I have collected the following information for my study through research from books,

Internet articles, academic journals, newspapers, surveys, and interviews from members of the

sports industry. I felt that this would be the best way to reach my conclusion that the reason why

the National Football League is so successful is competitive balance.

Literature Review

Free Agency and the Salary Cap

“Originally, the NFL used the „reserve system‟ that was created by Major League

Baseball. Under this system, once a player‟s contract expired, he could renegotiate with the team

that owned his contract. If the player did not work out a new deal but wanted to play, his team

could renew his old contract with up to a 10% pay cut. Otherwise, the player was put on the

„reserve list,‟ and no other teams were allowed to negotiate with him. The only other option for

a player at that point was to retire, be traded or hope to be cut and hope he could land with

another team.” (Mac, 2007)

In 1947, the league adopted a one-year option rule, which allowed teams to automatically

renew a player‟s contract after the duration of the season. This was a small example of how the

leagues archaic free agency period began. This one-year option rule was a clause that trapped

players, as this was a way for owners to indefinitely renew their player‟s contracts.

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In 1963, the commissioner of the NFL Pete Rozelle,introduced The Rozelle Rule which

would compensate a franchise who had lost a free agent in the offseason. If the team and the

player could not agree to terms of the contract Rozelle had the absolute final ruling on

compensation. Pete Rozelle watched as the Cleveland Browns dominated the AAFC. As a

direct result attendance went down drastically for Browns home games. When fans know the

expected outcome of the game they don‟t feel the need to come to the games. This hurts the

franchise, the league, and decreases the revenue of the owner. Rozelle realized this couldn‟t

happen in the NFL, and competitive balance was needed.

During its fourteen-year period few players and clubs have actually went through with

the Rozelle Rule. In 1976, the player‟s union won a court decision that found that the Rozelle

Rule was an unfair restriction on trade. In 1993, the owners granted the players free agency in

exchange for a salary cap.

The NFL‟s free agency system was set up with the idea to optimize competitive balance.

In 2011‟s NFL lockout mediations, it was Collectively Bargained that a salary cap floor would

be added to the salary cap. A salary cap floor is a minimal amount of money a team could spend.

A team is allocated $120 million and they must spend at least $ 108 million dollars, which is 90

percent of the salary cap."(Beekers, 2011)"

The salary cap is an important factor in my point to prove that the NFL wants to achieve

competitive balance. Not all portions of NFL player‟s contracts are guaranteed. Unlike other

professional sports such as the NBA, MLB, or the NHL if a player is cut a team, the team doesn‟t

have to pay his whole portion of his contract. Thus, if a player is injured or aging a team isn‟t

forced to keep him on the payroll. Often times in other sports leagues, franchises are forced to

retain players contract for several years after the player has declined. In the same aspect when a

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team is very talented there is only so much money to go around to every player a team develops.

At a certain point a general manager in the NFL is going to have to make a decision over who

stays and who walks. The NFL salary cap is put in place to prevent dynasties and wealthy

owners from signing all the top talent around the league.

A team that finishes with a 6-10 record could just be a few players away from making the

playoffs, so free agent pickups are a very important aspect to building a championship team.

Players sign with teams for a variety of different reasons. Usually players choose the highest

bidder, on the other hand players may choose a team for chances to win a title, family comfort,

hometown, or outside market interests. Free agency is unpredictable and just because an NFL

team may win the top free agents on the market doesn‟t guarantee that they are going to win the

Super Bowl.

Agents play a key role in todays NFL trying to find the best contract for the players that

they represent.Agents go over a lengthy negotiation process with franchises and work on

different contract possibilities for their clients. Some contractsare frontloaded, where the player

will receive his money up front. Often franchises will give players most of their money upfront

so they can later cut him and not take as big of a salary cap hit. Other times players will

negotiate back loaded contracts where they would receive their money at the end of their

contracts. This is a strategy teams take when they have a lot of talented players they are trying to

squeeze under the NFL salary‟s cap. Contracts can also be evenly distributed with different

signing bonuses, or player incentives such as pro bowl appearances, or milestones such as 1,000

rushing yards in a season.

One such way a team can prevent losing its key free agents is the franchise tag or the

transition tag. “When an “exclusive” franchise player is signed he does not have the eligibility to

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sign with another team. He is offered a minimum of the average of the top five salaries at the

player‟s positions. If a player is offered a minimum of the average of the top five salaries of last

season at his position and can negotiate with other clubs he is deemed “non exclusive”. The

players original club can match a new club‟s offer, or receive two first round draft choices if it

decides not to match. A transition player has received a minimum offer of the average of the top

10 salaries of last season at the player‟s positions. If a transition player is offered a contract by

another team, the team that designates him as a transition player has seven days to match any

offer sheet given to the player after his contract expires.”

By allowing teams one franchise tag and one transitional tag player per roster is another

way the NFL uses free agency to promote competitive balance. Franchises who have had

success will eventually lose their free agents after four seasons. According to NFL.com “After

three, four, or five years of service, a professional football player automatically becomes an

unrestricted free agent.”(Adler, 2011)

(Jorzsa, 2010)Undrafted rookie free agents can also try and latch on to a team. Undrafted

free agents can sign to a team in hopes of making the practice squad. In many cases in the past,

players that were unknowns have become success stories, such as future hall of famer Kurt

Warner‟s or LaGarrette Blount last season. Professional football is both physically demanding

mentally and physically so the turn over of players from week to week is significantly noticeable.

A shrewd scouting system can be an important step to success, as the Green Bay Packers were

handed a devastating amount of injuries in 2010. Those same Packers went on to win the Super

Bowl with a winning philosophy, which started with the scouting department hitting on late

round draft picks and undrafted free agents.

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Some academics feel that free agency and a salary cap have not increased competitive

balance. According to the author“Using the GINI index which is used to measure competitive

balance in the NFL, the data collected from 1973 through 2003 showed neither an improvement

in competitive balance or time nor a discernible change in competitive balance after the NFL

instituted a salary cap before the start of the 1994 season.” (Barriger, 2004)

I disagree with this author‟s conclusion because the Gini Index is just measuring teams

wealth in terms of wins and loses but the results go beyond that. The game of football is a game

of inches, balance, coaching, luck, and surviving injuries. One injury to Peyton Manning can

ruin a franchises chance of competing for a playoff berth. Another critique I have with this

studyis that it takes place from 1973-2003;the salary cap was only introduced in 1994 so the

results of the study are thrown off. The author should have done the study from 1994 to 2003 or

compare the two results to deduct a superior conclusion. The author could have also compared

both pre and post salary cap results to draw a better conclusion.

The author does make mention that the NFL does adjustments to schedules from year to

year to give teams a better chance to win. This statement is incorrect because the NFL schedules

are set up in advance for every three years. The only games that are added to the schedule are

two games that are based on a football clubs previous placement in standings. In his research he

fails to mention that from 1993 to 2003 when a salary cap was introduced the Gini Index clearly

shows that competitive balance is maintained over the ten-year period. From 1973 through 2003

there may be some points where competitive balance is lower but in many of those seasons

expansion teams are introduced.

When expansion teams are introduced competitive balanced is thrown off because the

rosters of those teams are weaker then the competition that they are facing. While the NFL gives

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expansion teams the opportunity to secure the first overall pick in the NFL draft it simply hasn‟t

been enough to produce a competitive team in its first year of competition.

Competition

The NFL is operating as a monopolistic organization at the highest level of professional

football competition. Not having any direct rival leaguesallows to keep the demand and price of

football players contracts lowered. This is a beneficial factor that the NFL has over the other

three professional sports leagues. If there is no other league that can bid as high as franchises in

the NFL, it will attract the top talent from across the country.

The NFL has an advantage over the MLB for several reasons when it comes to signing

and drafting players. Scouts have the difficult job of projecting how high school players will

perform. When it comes to drafting they also have to project how college players will hit without

a metal bat. International players can also be a difficult to gauge since the dimensions of

stadiums they are playing on are smaller. Not to mention these players are playing inferior

competition.It‟s really a guessing game between the best of the business on how international

players can hit major league pitching and can they get major league baseball players out. Of

course one of the main differences between the NFL and the MLB is salary cap. Major League

Baseball is the only professional sport to not have a salary cap in place. The MLB has created a

luxury tax, which sets a limit of the amount of money a team can spend without paying a penalty.

When it comes to money, Major League Baseball is filled with teams that are haves and have-

not‟s. Thus more often times than not, small market teams stars are gobbled up by large market

teams.

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The NFL also has a huge advantage over the NBA when it comes to competitive balance.

The NBA has the smallest rosters out of any professional sport and it only takes 1 player to

significantly improve a teams fortunes. When LeBron James was drafted to the Cleveland Cavs

with the first overall pick in 2003, they instantly became one of the best teams in the Eastern

Conference. The NBAs draft is similar to the MLBs as both are based off of projected talent.

NCAA Athletes only need to have one year of playing eligibility to qualify for the NBA draft.

As the game of basketball has grown in popularity overseas, the amount of foreign players to

enter the NBA has increased. It also can be scene in foreign competition such as the Olympics

where the USA has faced some of its most difficult challenges. When drafting or acquiring

foreign players it isn‟t always a guarantee the player will ever suit up for your favorite team.

Professional Basketball leagues are sprouting up all across the globe so mid level players are

cashing in and taking their talents overseas.

According to Mark Jorzsa the NFL wasn‟t always the only house on the block for

professional football. Some of the former leagues to oppose the NFL were “The American

Football League, The All American Football Conference, The United States Football League,

Xtreme Football League, World Football League, Canadian Football League, and the Arena

Football League.” (Jorzsa, 2010) (Conligio, 1997)

“The NFL merged with the All American Football Conference in December 1949, with

the NFL absorbing three teams into the league The Cleveland Browns, The Dallas Texans and

the San Francisco 49ers. The Texans moved to Baltimore and became the Baltimore Colts. The

downfall of the AAFC was the domination since the inception of the Cleveland Browns. They

nearly went undefeated every season and fans quickly drew disinterested.”(Jorzsa, 2010)

The NFL has merged with many of these leagues to dominate different target markets

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throughout the United States. The AFL played an integral part of success of the NFL.

“ The AFL existed from 1960-1969 and were the pioneers for many of the

innovative ideas that we see in the NFL today. Of all of the leagues that have attempted

to challenge the dominance of an established league, the American Football League was

the only one to be truly successful. The American Football League was the only league in

North American pro sports ever to have merged with another major league and have all

its teams continue to exist. No AFL teams folded and only two teams changed cities

during the league's 10-year existence. Further, the league that merged with it adopted

many of the innovative on- and off-field elements introduced by the AFL, including

names on player jerseys, official scoreboard clocks and gate and revenue sharing. The

AFL's challenge to the NFL also made possible the only four World Championship

Games ever played between the champions of two major football leagues.”(Conligio,

1997)

The AFL also created the two-point conversion, which the NFL adopted in the 1990s.

The key to the AFL‟s success with limited print media coverage was the ability to capitalize the

audience through television. Executives at the AFL realized the importance of television. They

made the game more audience friendly such as mid field camera angles, slow motion replay, and

official scoreboard clock. Many of the coaches in the AFL tried to create a more downfield

approach such as Al Davis. Prior to his throw heavy offense many referred to football as running

and creating a cloud of dust. The AFL was also the first league to add microphones to players.

The AFL played during the 60‟s when the world was changing and the AFL scouted more

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African American colleges then the NFL. The AFL also realized the importance of competitive

balance creating a 14 game schedule for its 8 teams. This gave every team the same strength of

schedule and gave each team equal opportunity.(Conligio, 1997)

As a direct result of the AFL‟s success the NFL granted franchises to several different

locations. “The Dallas Cowboys were created to drive the Dallas Texans out of business. The

Minnesota Vikings were created for Max Winter because he had abandoned the AFL. The AFL

supplemented his abandonment with a new franchise in Oakland. Rakin Smith was interested in

purchasing the Miami Dolphins, the NFL persuaded him not to purchase them by creating the

expansion Atlanta Falcons. The New Orleans Saints were created due to the support that the

governor gave to the NFL and AFL during its merger.”

The original 8 teams that participated in the AFL were the Boston Patriots, The Buffalo

Bills, Houston Oilers, The Titans of New York, The Denver Broncos, The Dallas Texans, The

Los Angeles Chargers, and the Oakland Raiders. The Houston Oilers would later join the

Eastern Division, and the Cincinnati Bengals would later join the Western Division. All of these

franchises would continue play when the NFL and AFL merged in 1970.Both in the short and

long run, this merger significantly affected the NFL‟s fan base and market power, and it

influenced the total number of games its clubs played during regular seasons and in postseasons.

More specifically from 1969 to 1970, the league‟s paid attendance in regular seasons increased

by 56 percent and in postseasons by 182 percent while the total number of games played rose by

75 (65 percent). In 2007, the NFL‟s total paid attendance for 256 regular season games was 17.3

million and 792,000 for 12 post-season games. Thus between 1969 and 2007 inclusive, the

NFL‟s paid attendance per game increased by 24 percent during regular seasons and by 22

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percent in postseasons.”(Jorzsa, 2010). This merger helped create geographical rivalries between

the already existing NFL.(History Of The USFL, 1997)

Other competitive leagues were not as successful such as the USFL. “The USFL was

originally played in the spring and tried to sue the NFL on antitrust ground claiming the NFL had

a monopoly over the sport since they were the only league to play in the fall. The USFL had

many superstars playing in there league during the 1980‟s such as Steve Young, Hershell Walker

but their downfall was an abundance of contracts that teams couldn‟t afford.” (History Of The

USFL, 1997)

(XFL History, 2005)The USFL never got a chance to play in the fall as they lost there

antitrust case and were handed a check for one dollar for the case. The USFL league played

from 1983-1985.

“The XFL was the brainchild of Wrestling promoter and owner of the WWE Vince

McMahon, backed by NBC.”(XFL History, 2005). (History of the UFL, 2007)The XFL only

lasted one season and was an epic failure in both ratings and as a football league. The league will

be remembered for players being allowed to put clever nicknames on the back of their jerseys

such as " He Hate Me", new camera angles, and behind the scenes access it gave to the fans. The

league was set up to do well in big cities; big sponsors, a television deal but it had one flaw the

overall talent. While it did produce some NFL players most of the talent in the league was subpar

and fans grew disinterested relatively quickly.

“The UFL kicked off its season in 2009 is still currently in existence. The UFL is played

during the fall season so it is in direct competition with the NFL and college football. Since its

inception its goal has been to provide fans with a cheap alternative to the NFL. The leagues focus

is to expand into college towns showcasing former college stars that did not make it in the

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NFL.”(History of the UFL, 2007)

The Arena Football League has played games since 1987 and is still currently being

played to this day. Though most of the rules between the NFL and the Arena Football league

differ many of the rules are the same. “The AFLhas already reached a one-year deal with the

NFL Network to broadcast a Friday night game of the week, beginning with Chicago at Iowa on

April 2nd. Kurz said 14 of the 15 teams would be featured during the regular season.” (Press,

2010)The game flowand pace of the Arena league is fast paced, lots of scoring, and is played on

a 60-yard field. The league currently has 20 teams that play in the league and after take a short

hiatus to get their revenues in order they plan to stay for a long time.”

One form of competition for the NFL happens to be north of the border with The

Canadian Football League. The CFL was officially founded in 1958 according to Canadian

Football League History (History of the CFL, 2004). “The CFL has roots in rugby, and has been

playing games since 1958. The league currently has nine franchises and is looking to expand to a

tenth team according to its website. The league operates between the months of June and

November. The CFL has made an agreement with the NFL to allow the Buffalo Bills to play in

the Rodgers Centre in Toronto.” Many football enthusiasts believe when Bills owner Ralph

Wilson Jr. passes on the Bills will move to Toronto, Canada, which is the “fifth largest populated

city in North America. (US Census, 2000)(Vrooman, 2009)

In the past there have been many leagues that have gone head to head with the NFL. It is

no secret that most of them have failed. While the economic model of the NFL has helped it have

great success, prospective businessmen should realize sponsors like dealing with trusted partners.

While a new league may spring up and have good markets, contracts, stadiums and even revenue

system they may lack in talent. The NFL is the head and shoulders the best collection of talent of

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playing the game of professional football in the world. The NFL does everything in its power to

ensure that different market segments are met to maximize its profits. Since owners are sharing

revenues it would be of adverse affect to not have the best markets play in the league. Only in the

NFL can the Green Bay Packers win multiple championships and are owned by the public

shareholders, and the city of Los Angeles the second largest media market in the city remain

without an NFL franchise. Expansion teams must be proposed and pay a hefty entrance fee. “The

Cleveland Browns paid $350 million and the Houston Texans paid $750 million to enter the

league.”(Vrooman, 2009, p. 29)Rival sports league have an adverse effect on the NFL as they

increase the contract size of players. Ultimately it can create a bidding war in which an upstart

league may go at any length to get.

According to (Vrooman, 2009, pp. 29-30)“In optimal competitive balance is an empirical

question complicated by sports leaguesas naturally cooperative cartels. Theory implies that

revenue sharing in profit-maximizing leagues is inefficient because it increases monopsony

power, and yet revenue sharing is efficient in sportsman leagues because it increases competitive

balance. Future research should determine the blend of cooperation and competition that

maximizes social welfare in professional sports leagues. In theory the perfect game is a

symbiotic contest between evenly matched opponents, but in practice the perfect game is an

evenly matched contest between chance and fate".

I agree with this author‟s deduction because he tested each professional sports league

individually depending on its own economic structure. He determined that the NFL was the

most competitively balanced league out of the four major professional sports leagues. He came

to the conclusion if an owner is a “sportsman owner”, one that wants to win by sacrificing how

much profit he or she can make, or a “profit maximizing owner” that may sacrifice talent on the

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field to churn a profit can both be successful in the economic structure of the NFL.

THE NFL DRAFT

The NFL draft is another example of how the NFL promotes competitive balance.“Since

1935, the NFL has maintained an economic and competitive model that distributes talent and

revenues throughout the league.”(Yost, 2006)

“The foundation to this model is league‟s reverse order draft, which guarantees that big-

and small market teams alike have an equal opportunity to draft the best college players.”(Yost,

2006)

“The NFL draft is currently a three-day selection process that allows teams the rights to

claim the top football talents from across the world. Teams that make the playoffs are then

determined by record and placed by where they are eliminated in the playoffs. The only two

spots that are set in stone at that point are the two super bowl teams, with the winner getting the

later of the two picks. If there is a tie between two or more franchises the NFL breaks it by

previous years strength of schedule, division or conference record, or if all else fails the final

option is a coin flip. If there is an expansion team entering the NFL they will automatically

receive the top pick in the draft.” (Bonser). With intentions of promoting competitive balance,

the NFL sets the draft in reverse standings order.

The NFL draft takes place, over a three-day period and lasts for seven rounds. Scouts,

general managers, coaches are sent all across the United States to witness who could become

there teams next superstar. According to Bianchi, G. Age Requirement in Professional Sport:

http://www.thesportjournal.org/article/age-requirement-professional-sport “NFL rule requires a

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player to either be out of high school for three years or have finished three college football

seasons before joining the league.” (Lupica, M. 2004) “The NFL is the only major professional

sport that prohibits the drafting of players who have not completed three college seasons or who

are not three years removed from high school graduation” (Gehring, 2004; Nieporent 2004). The

NFL claims that this rule is in the athlete‟s best interest. The NFL argues that this rule protects

player‟s physical safety. However, the NFL and the NCAA benefit by capitalizing on amateur

athletes.”

The NFL differs from other professional sports because you must be three years removed

from high school before you are eligible to declare for the draft. Being that the NFL is such a

physically demanding sport this is the correct rule to have in place. In this case it is to my belief

that this benefits the NFL more than any other professional sports leagues. I hold that this rule

promotes competitive balance because it allows the players to get coached longer and more of an

opportunity to polish their skills. Being that the NFL is so physically demanding the strength of a

veteran compared to a senior coming out of high school is significant.

There are also several ways that NFL teams can acquire draft picks. “Teams can acquire

picks by either trading them or by receiving compensery picks. A team can also acquire a

compensatory draft picks based off the free agents that the team lost in the offseason. If a team

loses more players then they acquire in free agency the NFL rewards them with a compensatory

draft pick. These draft choices are discussed a few weeks before the NFL draft and are restricted

from trade. A team can receive anywhere between a fourth and a seventh round pick depending

on much the player or players contract is worth that they lost. Draft picks can also be forfeited if

a team does something illegal such as going over the cap, or video taping another teams

practice.” (Bonser)

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Each round has time limits on them so the pressure of every pick is mounting. This also

makes for exciting television. A first round pick has a time limit of ten minutes, while a second

picks time limit is seven minutes. Round three through seven each have a five-minute time limit.

If a team does not submit there pick before the time limit expires, the next team in the draft order

can jump in front of them. Though this is rare it has happened in the past.”

In todays game the NFL draft is a huge media spectacle for the fans that draws huge

ratings Scouts, general managers, and coaches‟ search all over the country to select its next

budding superstar. ESPNU ranks the top 100 players so at a high school level both fans and

colleges can follow the top recruits throughout their career. Fans can follow along and root for as

many blue chips prospects to select their schools as possible.

To identify these blue chip or five star athletes ESPN Draft experts Mel Kiper Jr. and

Todd McShay along with other scouts rank where they believe players will be selected in the

draft. Kiper and McShay, along with other scout agencies, send out there reports to agents the

college player rankings. Scouting is very important in the NFL because of the many different

positions and divisions a player can come from. The NFL draft rewards teams in theory who had

an underwhelming season, it gives the fans a glimmer of hope that better days are yet to come.

A terrible draft selection can set a franchise back for several years. Football is a game of

inches, injuries, and calls in or out of your favor; so how do you find the next mid round hall of

famer? Each season prior to the draft the NFL holds a scouting combine in Indianapolis with

scouts, general managers, and coaches in attendance. In these drills player‟s mental and physical

abilities are tested amongst there competition.

(NFL.com, 2011)“Such events as bench press, forty-yard dash, cone shuffle amongst

other events that measure physical attributes. Players are also asked to interview to see how they

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fair under media pressure and take a wonder licktest, which measures a player‟sintelligence.

Colleges also host Pro Days, which showcase some of their potential NFL stars.” By putting it

on all out display of the incoming players talents it allows, scouts the opportunity to see before

their eyes the top talent from across the country.

Bert Bell created the idea of the NFL in 1936 while he was owner of the Philadelphia

Eagles. "Bellrealized as an owner if he wanted to bring in the top talent from the league, while

fielding one of its weakest rosters, the league needed to adopt a draft. All of the NFL owners

meet in a hotel where a vote was held on whether or not the NFL should adopt the idea of an

NFL draft. The owners unanimously agreed that a draft should be instituted along with revenue

sharing to help promote competitive balance. While having the top selection in the draft didn't

give the Championship that Bert Bell had desired, it laid out the blueprint for teams today. Bell

feared that without a draft that players would just sign with teams who had history of success or

offered the most money.”According to Hall Of Famers: Bert Bell (Hall of Fame, 2008)Bellwould

later go on to be elected commissioner of the NFL from 1946-1959 for visionary ideas such as

the NFL draft.

“In 1977 the NFL instituted the supplemental draft, which gave college players the

opportunity to enter the NFL but didn't meet certain requirements to enter the draft. Some of

those requirements might be not filling for the draft on time, academic, or behavioral.

Supplemental drafts are a little different then the actual NFL drafts because teams make bids on

players. Each team submits their bid on what round they believe that they would select their

player in. Players are awarded to teams who have the highest priority and have the highest bid. If

a player is awarded to a team then the team must forfeit there draft pick in that round in the

following season.”(Adler, 2011)

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One of the main reasons that the NFL owners and players were at such a standstill in

labor negotiations was the rookie wage scale. In previous seasons NFL rookies that were drafted

early in the first round were paid like full serviced veterans of the league without ever playing a

snap. Even with advanced scouting teams, they can be wrong, and those wrong decisions can set

a franchise back for several seasons. It was collectively bargained that a rookie‟ssalary would be

much lower then they were previously.

“The difference between Cam Newton and Sam Bradford‟s contract is about $50 Million

dollars. Both players play the same position and both players were the first overall pick in there

respective years but one year made a big difference.” The author of this article feels it is the right

decision. "No longer will teams long term health be put at risk by a high round draft choice."

Lobdell J. (2011,July) Our First Look At The NFL Draft: (Lobdell, 2011)

This is another way the NFL promotes competitive balance when you consider that it

allows teams the ability to sign other pieces to there team to get them back into contention at an

accelerated rate. Some other authors do not believe that the NFL draft does not promote

competitive balance. Bert Bells legacy as NFL commissioner carries on the success of the game

today. During his tenure the NFL wasn‟t making money like it is today hand over fist but he laid

the blue print for it. “On any given Sunday, any team in our league can beat any other team.

There isn‟t any such animal as a weak sister in our league anymore. You knock my brains out

this week, next week I will knock your brains out.” (Yost, 2006)

NFL Playoffs and the Super Bowl

The Super Bowl is the final game of the season that pits the winner of the AFC against

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the NFC. The game has been played that way since 1971 prior to that it was the winner of the

AFL versus the winner of the NFL. Millions of fans all over the world tune in to see the Super

Bowl, which has become a secular holiday.

“The NFLs final game was originally called The Big One but after watching his children

play with a toy labeled Super Ball Lamar Hunt suggested to commissioner Rozelle to change it.

Throughout the years the NFL‟s postseason, various major television networks have won the

exclusive rights to broadcast a number of Super Bowl games.” (Jorzsa, 2010)

In today‟s sports landscape winning the Super Bowl is one of the hardest achievements in

all of sports to accomplish. It is also a major source of revenue of networks according to “A 30

second advertisement at the Super Bowl that the Steelers defeated the Cardinals earned NBC

around 3 million dollars.” (Jorzsa, 2010)

Super Bowls generate business for the host towns and also generate business to gambling

websites. To prove my point of competitive balance I have listed the past 15 Super Bowl

participants. I have also recorded the winner, attendance and result as my part of my study.

I have obtained the following scores from The NFL Record & Fact Book and the world almanac

and book of facts

1997- 35 Packers vs. Patriots 24-

Attendance- 68,912

1998- 31 Broncos vs. Packers 24-

Attendance- 74,803

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1999- 34 Broncos vs. Falcons 19-

Attendance- 72,625

2000- 23 Rams vs. Titans 16-

Attendance- 71,921

2001- 34 Ravensvs. Giants 7-

Attendance- 72,922

2002- 20 Patriots vs. Rams 17

Attendance- 67,703

2003- 48 Buccaneers vs. Raiders 21

Attendance- 71,525

2004- 32 Patriots vs. Panthers 29

Attendance- 71,525

2005- 24 Patriots vs. Eagles 21

Attendance- 78,125

2006- 21 Steelers vs. Seahawks 10

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Attendance- 68,206

2007- 29 Colts vs. Bears 17

Attendance- 74,512

2008- 17 Giants vs. Patriots 14

Attendance- 71,501

2009- 27 Steelers vs. Cardinals 23

Attendance-70,774

2010- 31 Saints vs. Colts 17

Attendance-74,059

2011- 31 Packers vs. Steelers 25-

Attendance- 103,219

The following teams have appeared in more then one Super Bowl over the past 15 years.

The Patriots (4), The Packers (3), The Steelers (3), The Giants (2), The Colts (2), The Broncos

(2), and the Rams (2). The following teams have won more then one Super Bowl within the past

15 years. The Patriots (3), The Packers (2), and The Broncos (2).

As you can see while it is possible to have runs for an expended period of time it is more

often that not that participants will change from year to year. You can also attribute that while

you can promote competitive balance some executives and coaches are just better then others.

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The following teams have had only one lone Super Bowl appearance within the past 15

years. The Saints, The Ravens, The Rams, The Titans, The Raiders, The Cardinals, The Bears,

The Seahawks, The Falcons, The Eagles, and The Panthers. There have been seven different

teams from the AFC to appear in the Super Bowl in 15 years. While the NFC has had ten

different franchises represent them in the Super Bowl within the past 15 seasons.

The NFL playoffs are the only professional sports league to use a single game elimination

format to determine its playoff winners. This allows for more upsets, and draws interest from

fans since so much is on the line. The NFL is constructed of two conferences the AFC and the

NFC; which contains 16 teams each. Division winners automatically qualify for the playoffs.

The NFL has also set up four divisions of four teams in each conference to set up rivalries, which

are both historical and geographical. With ideas of promoting competitive balance the NFL as of

last season has added divisional games played to week 17 of the season to keep fans interested.

The Houston Texans are the only current NFL team to have never qualified for the playoffs. I

have enlisted the NFL's playoff teams for the past 10 seasons.

According to (Yost, 2006)“The Steelers and The Seahawks, the two Super Bowl XL

combatants, represent the 21st and 14th largest markets in America. This balanced competitive

play on the field-in partnership with balanced economics off the field has made the NFL of every

other league.”

In other sports large population markets such as the Los Angeles Lakers, Detroit

Redwings, and the New York Yankees continuously dominate championships. In the NFL as

you can Super Bowl contending teams within the past fifteen years you can see the teams come

from small to medium markets such as the Tampa Bay, Oakland, Green Bay, Carolina,

Nashville, Pittsburgh, Indianapolis, and New Orleans. Mid Market population teams such as

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Baltimore, Seattle, Phoenix, Denver, and Atlanta have also participated in Super Bowls.

The past five Super Bowl winners are in direct correlation to the rule changes of the NFL.

The NFL has recently heightened safety for the offensive player and limited the amount of

contact a defender can have on a receiver. The Green Bay Packers, New Orleans Saints,

Pittsburgh Steelers, and Indianapolis Colts strengths in their Super Bowl stretch were the vertical

passing game. While the Giants strength may not have the vertical passing game they were built

to stop it with one of the most ferocious defensive lines ever assembled. In the 2008 NFL season

The New England Patriots where setting offensive records across the board. They were only one

game away from a perfect season until they ran into a team who schemed perfectly for them.

Less than a month earlier the two teams met where the Patriots defeated the Giants easily. The

upset in the Super Bowl was one illustration of competitive balance that the NFL puts on display

every year.

I have obtained the following data from participants of the NFL playoffs from

NFL.com/standings

NFL Playoffs

2010

AFC- Patriots, Steelers, Ravens, Colts, Jets, Chiefs.

NFC- Falcons, Bears, Saints, Eagles, Seahawks, Packers

2009

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AFC- Colts, Chargers, Bengals, Ravens, Patriots, Jets

NFC- Saints, Vikings, Cardinals, Cowboys, Eagles, Packers

2008

AFC- Steelers, Titans, Chargers, Dolphins, Ravens, Colts

NFC- Panthers, Giants, Falcons, Eagles, Vikings, Cardinals

2007

AFC- Patriots, Colts, Steelers, Chargers, Titans, Jaguars

NFC- Cowboys, Packers, Seahawks, Buccaneers, Giants, Redskins

2006

AFC- Chargers, Ravens, Colts, Patriots, Jets, Chiefs

NFC- Saints, Bears, Cowboys, Giants, Eagles, Seahawks

2005

AFC- Colts, Broncos, Jaguars, Steelers, Bengals, Patriots

NFC- Seahawks, Bears, Redskins, Panthers, Giants, Buccaneers

2004

AFC- Steelers, Patriots, Chargers, Colts, Broncos, Jets

NFC- Eagles, Falcons, Rams, Packers, Vikings, Seahawks

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2003

AFC- Chiefs, Patriots, Titans, Colts, Broncos, Ravens

NFC- Rams, Eagles, Panthers, Packers, Seahawks, Cowboys

2002

AFC- Raiders, Titans, Steelers, Jets, Colts, Broncos

NFC- Eagles, Buccaneers, Packers, 49ers, Giants, Falcons

2001

AFC- Steelers, Patriots, Dolphins, Raiders, Jets, Ravens

NFC- Rams, Bears, Eagles, Packers, 49ers, Buccaneers

The AFC has averaged over that 15-year period at least three new teams to qualify for the

playoffs each season. I have also noticed that in the NFC out of fifteen years, over ten different

teams have qualified for the Super Bowl over that time period. While fans enjoy rooting the

more teams who compete for playoff spots each year draws interest to fan bases in both ratings

and attendance.

The NFL Schedule and Competitive Balance

Today The NFL realizes that close games are important to drive fans to attend and for

television ratings. With that in mind competitive balance plays in important role in schedule

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creation for the NFL. "The NFL schedule is set up three years in advance with the exception of

two open slots, which are allocated, for two teams who finished in the same place as them the

previous season. 6 divisional games, 4 in conference games, and 4 out of conference games

divides the other fourteen games up. The 4 in and out of conference games are rotational and

switch a division each season." According to National Football League (2011, March ) 2011

team by team opponents in the NFL: (NFL, 2011)(Enterprises, 2010)In my opinion

commissioner Roger Godell realizes the importance of having the most competitive games

recently installed all divisional games occurring on week 17 of the season. In theory players

won‟t mail in the game even if it playoff implications may not be on the line due to division

rivalry.

Illustrations Of Competitive Balance

1996

New England from 6-10 to 11-5

Detroit Lions from 10-6 to 5-11

1997

New York Jets from 1-15 to 9-7

Buffalo Bills from 10-6 to 6-10

New York Giants from 1-15 to 9-7

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1998

Buffalo Bills from 6-10 to 10-6

Dallas Cowboys from 6-10 to 10-6

Atlanta Falcons from 7-9 to 14-2

1999

Indianapolis Colts from 3-13 to 13-3

Washington Redskins from 6-10 to 10-6

St. Louis Rams from 4-12 to 13-3

Atlanta Falcons from 14-2 to 5-11

2000

Denver Broncos from 6-10 to 11-5

Philadelphia Eagles from 5-11 to 11-5

New Orleans Saints from 3-13 to 10-6

2001

New England Patriots from 5-11 to 11-5

Chicago Bears from 5-11 to 13-3

Minnesota Vikings from 11-5 to 5-11

San Francisco 49ers from 6-10 to 12-4

2002

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Indianapolis Colts from 6-10 to 10-6


2003

Pittsburgh Steelers from 10-5 to 6-10

Oakland Raiders from 11-5 to 6-10


Carolina Panthers from 7-9 to 11-5

2004

Pittsburgh Steelers from 6-10 to 5-1

Tennessee Titans from 12-4 to 5-11

San Diego Chargers from 4-12 to 12-4

2005

Cincinnati Bengals from 8-8 to 11-5




2006


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Baltimore Ravens from 6-10 to 13-3


Washington Redskins 10-6 to 5-11

Tampa Bay Buccaneers from 11-5 to 4-12

2007



Kansas City Chiefs from 9-7 to 4-12

St. Louis Rams 8-8 to 3-13



Green Bay Packers from 8-8 to 13-3

Dallas Cowboys 9-7 to 13-3

2008

Miami Dolphins from 1-15 to 11-5



Cleveland Browns from 10-6 to 4-12

Jacksonville Jaguars from 11-5 to 5-11


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Seattle Seahawks from 10-6 to 4-12

2009

Cincinnati Bengals from 4-11-1 to 10-6

Tennessee Titans from 13-3 to 8-8

San Diego Chargers from 8-8 to 13-3



Carolina Panthers 12-4 to 8-8

Tampa Bay Buccaneers from 9-7 to 3-13

2010

Cincinnati Bengals from 10-6 to 4-12

Kansas City Chiefs from 4-12 to 10-6

Arizona Cardinals 10-6 to 5-11

St. Louis Rams from 1-15 to 7-9

Carolina Panthers from 8-8 to 2-14

Minnesota Vikings from 12-4 to 6-10



From Last Place to First Place

2007- Tampa Bay Buccaneers

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2008- Miami Dolphins

2009- New Orleans Saints

2010- Minnesota Vikings

From First Place to Last Place

2005- Arizona Cardinals, Cincinnati Bengals

2007- Baltimore Ravens, Philadelphia Eagles, Chicago Bears

Coaching Philosophies

One reason that the NFL has so much competitive balance is the different strategies each

team uses based on its roster. Some teams are weaker on defense and stronger on offense.

Others can be equally as strong on offense and defense but suffer from horrible special teams. I

think to prove my point illustrating each coach‟s strategy is an important aspect to prove my

point of why the NFL has the most competitive balance.

NFL Rules and Regulations

Professional football is both physically and mentally demanding. It is a game that is

constantly evolving as players become faster and stronger throughout the years. Many veterans

have suffered injuries attributed to their football playing careers that they carry on to this day.

With this in mind the NFL has made a concentrated effort to increase players safety over the

years. This is important because a key injury to a player such as Peyton Manning can ruin a

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team‟s chance of having a successful season. This is key for both competitive balance and for

player‟s longevity of health.

"Rule changes in the NFL have been made throughout the history of the league to

improve the game, make it more exciting and reduce the risk of injury. Safety rules are one of the

most important and effective ways in which the NFL and its owners can help protect the health

of players. By helping to identify, promote and enforce safe on-field conduct (in concert with

off-the-field education and policies), the league seeks to preserve both the health of players and

the integrity of the game."(Enterprises, 2010)

Today NFL league officials have meetings to discuss player‟s safety, long-term health

risks, and how to better suit competition. It is important for the NFL to sit down every year and

broaden its rules, and policy‟s because at the highest level of play they set the standards for the

peewee youth leagues, colleges, and high school athletes across the country. I have taken the

liberty to identify the rules that have promoted competitive balance and player‟s safety from

1960-2011.

“The scoreboard in NFL stadiums running game times became the official game clock in

1962. This was an idea the NFL would borrow in 1970 when the leagues merged. In 1966 the

field goal posts were raised to 20 feet above the crossbars became standard. In 1967 a player who

signals for a fair catch may not block or initiate contact with a player until the ball is touched by

a player. Today this penalty would be known as fair catch interference. Switching from an

officials game block to an official scoreboard clock made it easier for the fans to follow along

with the game. The fair catch was one of the first rules for player‟s safety and prevention of

injury. The raising of the field goal posts made it easier to identity to officials if a kick was good

or not. In the previous NFL championship game a controversial field goal was called no good

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and many in attendance claimed that it did in fact go through the uprights.”(Enterprises, 2010)

“In 1970 the NFL and the AFL merged to become one league. One of the many

innovative ideas that the AFL brought to the sport of professional football is adding players last

names to the back of their jerseys. Today a fan may take advantage of the fact how easily

identifiable it is to recognize a player after a tackle, or a large run after a catch. The AFL with

their bright and colorful jerseys realized the potential of familiarizing their fans with players who

had their faces covered by helmets.”(Enterprises, 2010)

“In 1971 injury time out rules were defined that a team will not be charged a timeout for

a players injury unless it is past the two minute point of the 2nd or 4rth quarter. 1974 was an

important year for the NFL as many rules were changed to promote competitive balance and

safety of its players.” NFL Enterprises (2010) NFL Health and Safety: (Enterprises, 2010)

“In 1974 sudden death overtime period was incorporated into the game. If the two teams

were tied at the duration of the period the game would end in a tie. Field goal posts were once

again a topic of discussion as they were interfering with the play as both a safety hazard, and

strategy of teams. The posts were moved to the back of the end zones due to players running into

them. Kickoffs were moved from the 40-yard line to the 35-yard line, and restrictions on where

you can block were placed to open up the return game. Downfield contact with wide receivers

was also limited, as they were allowed contact, but only up to ten yards. Chop blocking zones

were introduced and anything beyond the chop-blocking box became a penalty.”NFL Enterprises

(2010) NFL Health and Safety: (Enterprises, 2010)

One of the most important rules maybe to be incorporated into the NFL was the way

offensive linemen were allowed to extend their arms. This was an important rule because this

allowed quarterbacks more time in the pocket to pass and made the game more vertical.

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In 1978, “the NFL adopted a new 16-game schedule preceded by a four-game preseason.

An additional wild card team in each conference was added to the playoffs with the two wild

cards squaring off during the first weekend of the post-season. 1979 saw an even more emphasis

on player safety as referees were now instructed to blow a play dead if a quarterback was clearly

in the grasp of a tackler.” NFL Enterprises (2010) NFL Health and Safety: (Enterprises, 2010)

Personal Fouls were also introduced prohibiting players from striking, swinging, or

clubbing opponents in the fact, neck or head area. “If a player commits a personal foul they will

be faced with a 15-yard penalty and it is possible they could be kicked out of the game.” NFL

Enterprises (2010) NFL Health and Safety: (Enterprises, 2010)

The 1980's saw few rules added to the game but the few that were added were important

for player‟s safety. “Hip Pads became mandatory to wear over uniforms in 1982, and in 1985 if a

quarterback slid headfirst he was not allowed to be tackled. In 1988 game clocks were extended

from 30 seconds to 45 seconds.”NFL Enterprises (2010) NFL Health and Safety: (Enterprises,

2010)

This was important because it allowed coaches and players more of an opportunity to call

the correct play. Thus allowing more downfield protection, which will allow more complete

passes, which ultimately leads to more points. The 90's were a decade that saw more rule

changes in terms of competitive balance and player‟s safety.

“In 1990 the NFL once again revised its playoff format to include two more wild card

teams. All three-division winners would qualify for the playoffs, along with three wild card

teams. This would bring a total of 12 teams to qualify for the playoffs, and would give the two

teams from each conference that finished with the best record a bye in the first round of the

playoffs.” NFL Enterprises (2010) NFL Health and Safety: (Enterprises, 2010)

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“Since the Wild Card System began in 1970, only nine wild card teams have advanced all

the way to the Super Bowl. Of those, five won the Super Bowl. Only three of those wild card

teams -- New England Patriots, Pittsburgh Steelers, and New York Giants -- won three games on

the road to make it to the Super Bowl." NFL Enterprises (2010) NFL Health and Safety:

(Enterprises, 2010). Last season the Green Bay Packers also made it to the Super Bowl as the 6th

wild card seed and won. Wildcard weekend is a fun slate of games were the winners are more

often then not unpredictable.

“1994 the NFL gave the option to teams to try and convert a two-point conversion by

way of pass or run. If a team elected to go for one point after a touchdown they still had this

option. Kickoffs were also moved from the 35 to the 30-yard line of the receiving team in the

same year. Neutral zone infractions were also clearly defined in 1994 which made it clear to

officials that a play must be blown dead when a defensive player forces an offensive player to go

offside. In 1995 a receiver who is knocked out of bounds can now return to the field of play if he

re establishes himself with both feet. If he does not then he cannot be the first player to touch the

ball otherwise he will be charged with a penalty.”NFL Enterprises (2010) NFL Health and

Safety: (Enterprises, 2010). Also in the same year communication devices became more efficient

so the NFL is a league that moved with the times and allowed players and coaches to

communicate with a small radio device connected to a players helmet. This was a smart move by

the NFL to allow coaches to get plays in to quarterbacks quicker making the game a faster paced

exciting draw for the fans.

In the later half of the 1990's safety remained the issue.“In 1996 helmet-to-

helmetpenalties became an issue of debate as we became more aware of concussions as a society.

Flags would now be given for players striking other players with their helmet with the referees

39

giving them personal fouls and the option to eject players from the game. NFL officials would

now review all helmet to helmet hits and would hand out fines after games to players guilty of

maliciously hitting players with there helmet. Continuing there focus on helmet safety, all

players were instructed to not remove there helmets at any point of play otherwise they would be

charged with a penalty. A player at this point is allowed to remove his helmet during a timeout or

at the duration of a quarter.”NFL Enterprises (2010) NFL Health and Safety: (Enterprises, 2010).

One of the most important rules to ever be created in the NFL was instant replay.

“Instant replay was tested in the 1998 preseason but would not go into affect until the

1999 regular season. The NFL allowed head coaches to challenge a multitude of different calls

on the field with the principle that they were incorrect in there challenge that they would lose

there timeout. Each team at this point would be allowed two challenges per half. 1999 also saw

the clipping rule altered as clip zones were removed from the game entirely and now players

were no longer allowed to chop block.” NFL Enterprises (2010) NFL Health and Safety:

(Enterprises, 2010)

“2000 saw the boom of the World Wide Web, and all proceeds of NFL.com were split

equally amongst the NFL teams. According to (Yost, 2006). “In 2002 a player who touched a

pylon while having the ball remaining in bounds was deemed a touchdown. This play would be

ruled live as long as any part of his body did not touch the ground.” NFL Enterprises (2010) NFL

Health and Safety: (Enterprises, 2010)

“Officiating of playoff games was brought up to the competition committee in the

summer of 2003 so from that season going forward all referee crews were to be kept together all

season long. Each officiating crew would be graded after each game and the crew with the

highest score would do the more important games.”NFL Enterprises (2010) NFL Health and

40

Safety: (Enterprises, 2010). Prior to this season all-star crews were selected and divided referee

crews up.

“In 2004 instant replay was tweaked awarding a third challenge to a coach if his previous

two challenges were won. The Tom Brady rule as many people often refer to it as expanding the

roughing the passer penalty as anything below the quarterback‟s knees. 2006 also prohibited

players from horse collar tackling or grasping the inside the collar of the jersey. In 2009

defenseless receivers rules are created prohibiting hits by defenders with helmets, forearms, and

shoulders. Wedge blocking is eliminated from kickoffs to open up lanes for returns. Prior to this

season, kickoffs were moved back once again to the 35 yard line.”NFL Enterprises (2010) NFL

Health and Safety: (Enterprises, 2010)

Many fans objected this rule but the league is making a concentrated effort to stop

concussions. A list of defenseless players also will now include kickers, and punters during the

return. A Quarterback shall be deemed defenseless on a change of possession, and a player who

receives a blindside block. Defenses in todays games must allow receivers to allow them to

catch the ball and defenders must allow them time to protect themselves when they are clearly

established as runners.

The NFL has instituted a multitude of new rules to promote offense and protect the safety

of its players. The league now realizes the severity of concussions and has gone to the upmost

length of ensuring players safety. The NFL realizes fans enjoy high scoring and offense and all

of the new rules that have been implemented are those that promote scoring within the past ten

years.

Financials

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Table 1

Team Valuations

Operating
Team Valuations
Revenue Income Value
ALL VALUES ARE MEASURED IN MILLIONS
Year 1999 2008 1999 2008 301 914
Arizona Cardinals 100 203 11 20 306 872
Atlanta Falcons 99 203 17 31 408 1062
Baltimore Ravens 120 226 33 23 326 885
Buffalo Bills 102 102 11 12 480 1040
Carolina Panthers 128 221 19 22 313 1064
Chicago Bears 101 226 20 34 394 941
Cincinnati Bengals 92 205 4 22 394 941
Cleveland Browns NA 220 19
NA NA 1035
Dallas Cowboys 162 269 57 31 663 1612
Denver Broncos 99 226 5 19 427 1061
Detroit Lions 98 204 16 8 293 917
Green Bay Packers 103 218 16 8 320 1023
Houston Texans NA 239 NA 44 NA 1125
Indianapolis Colts 98 203 16 16 305 1076
Jacksonville Jaguars 116 204 29 28 419 876
Kansas City Chiefs 110 214 31 12 353 1016
Miami Dolphins 128 212 33 36 446 1044
Minnesota Vikings 100 195 5 19 309 839
New England Patriots 110 282 14 39 406 1324
New Orleans Saints 102 213 11 22 315 937
New York Giants 108 214 25 41 376 1178
New York Jets 104 213 12 26 363 1170
Oakland Raiders 103 205 17 27 299 861
Philadelphia Eagles 103 237 19 34 318 1116
Pittsburgh Steelers 97 216 16 14 397 1015
San Diego Chargers 104 207 8 19 323 888
San Francisco 49ers 109 201 13 4 371 865
Seattle Seahawks 100 215 6 9 399 1010

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St. Louis Rams 111 208 33 26 390 929
Tampa Bay Buccaneers 129 224 41 39 502 1053
Tennessee Titans 90 216 4 25 502 1053
Washington Redskins 152 327 49 58 607 1538

Note: Revenue is net of stadium revenues used for debt payments. Operating income is earned

before interest, taxes, depreciation, and amortization. Value is current (2008) stadium deal

without deductions for debt. These numbers are in millions of dollars. NA means not available

since the Houston Texans and Cleveland Browns did not exist in 1998.

Source: “ (Jorzsa, 2010)Football Fortunes: NFL Team Valuations-Forbes

Revenue Sharing

“Unshared revenues for NFL teams include funds from stadium naming rights, local

sponsorships, local radio and television deals, and pregame and postgame clubs.”Yost, M. (2006)

Tailgating, Sacks, and Salary Caps, Kaplan.“Personal Seat Licensing is a new way NFL

franchises can make money that is not shared.”(Barker, 2009)

“The Ravens, Panthers, Bears, Bengals, Browns, Cowboys, Giants, Jets, Texans, Eagles,

Steelers, Seahawks, Rams, and Titans all sell some form of Personal Seat Licensing. PSL‟s are

when teams give the fans opportunity to not only buying the tickets to the games but purchased

their seat for other functions in the stadium. 60 percent of “home” ticket sales, concessions,

parking, and team store merchandise sales are shared.”(Yost, 2006)

“Under the labor and revenue-sharing system that was modified in March 2006, every

NFL owner starts out with about $100 million a year from national television and radio contracts,

sponsorships, and shared ticket revenue from each game.”(Yost, 2006)

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“Teams receive equal portions from a 12 percent royalty on NFL merchandise. In total,

about $3 billion of the leagues $5.2 billion revenue stream is shared equally among teams. As a

result, the Houston Texans, the team with the worst record in the NFL in 2005, are benefiting

from the merchandise sales of the Super Bowl XL champion Pittsburgh Steelers.”(Yost, 2006)

“Revenue that is shared is national television right, licensing fees for official NFL

merchandise, and 40 percent of all regular ticket sales, which are considered “away” team ticket

sales. In 2005 the NFL shared $5.2 Billion dollars of revenue with each team equally. Hitting

the target of the males between the ages of 18-49 better than anyone on television.”(Yost, 2006)

Competitive balance, league expansion into new markets, and new media during the

second half of the twentieth century has built the NFL into the economic juggernaut that it is

today.

Even through all the changes throughout the years the NFL still generates immense

amounts of revenues and profit margins and at the same time, allows the smallest to largest

market teams to compete against each other on equal footing. “We‟re in the 20th biggest market,”

said Denver Broncos owner Pat Bowlen. “We do well, but it would be very difficult to be

competitive if the NFL didn‟t share revenue. We compete against each other for three hours a

week, otherwise we have aligned interests” said New England Patriots Owner Robert

Kraft.(Yost, 2006)So it can be said that successful large market owners also realize the

importance of having everyone on equal ground.

“In 2006, the average head coach made 2.5 million; the average player made $1.2

million, with top stars making several times that much. The average franchise was worth $733

million, with the Washington Redskins topping $1 billion.” (Oriard, 2009)Brand NFL, UNC-

Press

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Television

The advent of television was the beginning of the transformation of the NFL from

obscure, little regarded sports league into the economic powerhouse that it is today. “From 1948

through 1955, the number of television sets in the United States grew from 172,000 to 25

million, and football awakened to the power of the new medium. In 1956, Bert Bell negotiated

the first ever-national NFL TV contract, which banned the broadcast of home games within

home markets. In 1957, there was an outcry to broadcast the sold out NFL championship game

between the Detroit Lions and the Cleveland Browns. Despite pressure from the Michigan

governor and state senators Bell would not budge from his stance. Originally he along with his

NFL brass felt that it was dishonest to sell a fan a ticket to a home game when you can watch it

on television.”(Yost, 2006)

“In 1970, the league signed a four-year television contract under which CBS televised all

NFC games and NBC broadcasted all AFC games. Monday Night Football was born and

brought the NFL to a broad, prime time audience. In 1973, the league announced that the Super

Bowl was a sell-out and that the game would be televised.”(Yost, 2006). Today, the Super Bowl

is the single most bankable television event for the league, television networks, and advertisers.

“Most historians peg the emergence of the NFL onto the national sports landscape to the

televised coverage of the 1958 title game between the Baltimore Colts and the New York Giants.

Four years later Pete Rozelle convinced big market teams such as the New York Giants, and

Chicago Bears that the best interest of the league was to negotiate a national television contract

and sharing the revenues equally. Through the 1960‟s and 1970‟s, the NFL football became the

45

most watched program on television and produced the greatest television event, The Super

Bowl.”(Yost, 2006)

“The NFL starting airing games primetime on Monday Night Football in 1970.” (Yost,

2006). Competitive balance, compelling story lines, and the portrayal of NFL players as rock

stars, made the NFLan instant hit on prime time.

In 1998, the NFL signed a $17.6 billion dollar national television contract with four

networks. The contracts gave the NFL $2.2 billion annually and more than $80 million a year to

split equally with each team. In comparison to Major League Baseball the contract it received

was about $570 million a season, giving each team around 19 million dollars to split.”(Yost,

2006)

“Satellite television allows fans from all over the country, or the world to follow their

favorite sports teams. The NFL Sunday Ticket was launched in 2005 and today DIRECTV has a

contract with the NFL through the 2014 season. DirecTV pays the NFL around 4 billion dollars

a year to be the exclusive rights owner to all of the games distributions through FOX, and CBS.”

(Yost, 2006)This contract is obviously a huge boost to the economic landscape of the NFL as all

of this money is shared equally with all 32 NFL teams.

“The NFL Network was launched in 2003 and the league invested around 100 million

dollars of its own funds into the league. The NFL network televises eight live regular season

games during the season. The NFL network also broadcasts NFL exhibition games, Arena

football, college football, high school football, and Canadian Football games. For its daily, year-

around programming of football events, NFLN offers standard and high definition and video-on-

demand services through television providers, NFL Mobile content via Sprint, online video and

editorial content through NFL.com, and downloadable video content through I Tunes. The

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league produces its own shows such as Replay, NFL Playbook, GameDay and Total Access in

addition to the Senior Bowl, Classic Games, Scouting For the NFL Draft, Preseason action, and a

live slate of 8 live games a year.”(Jorzsa, 2010)

The Impact of Fantasy Football

“Current estimates put the number of people playing fantasy football each year at

anywhere from 20 to 30 million. Over 3 million fantasy football magazines are sold before each

season. Each major sports network has added fantasy football components to their broadcasts:

Web sites, newspapers, and television shows.” (Yost, 2006)

The NFL allows you to participate in fantasy football leagues for free on NFL.com. With

a few simple clicks of the mouse you can instantly be the coach, and general manager of your

favorite NFL players. The NFL was once the pioneer of sports leagues to take advantage of a

new technology in television at a time when other professional sports leagues would not embrace

it. Currently the NFL is embracing this new form of technology and it is relative.

Those 20 plus million fantasy football players can sit on their couch from home in their

favorite players jersey while receiving updates of their scores on their Verizon cell phone with

the NFL mobile application. They can tweet or use Facebook to share their favorite players

video highlights or Players can watch all eight games at once on DIRECTV‟s Sunday ticket, or if

they are on the road listen to every game on XM Sirius satellite radio. Fantasy Football players

become obsessed with stats, roster movement, coaches, and everything that has to do with

football. It‟s a marketing director for a teams dream since teams are being followed closely even

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in the offseason. We are a fast moving society that wants our updates instantly and no other

league besides the NFL to the level the NFL has.

“The NFL owns one of the world‟s most recognized and valuable brands, and every

inroad into the market‟s awareness represents newer and larger revenues for the league. The

strategy is working NFL.com and team Internet sites had a record traffic with 16 million unique

visitors in 2005. The NFL is ranked second among sports related websites, behind only

ESPN.com, with 18.7 million users. MLB.com only had 10 million visitors, NASCAR 4

million, The NBA 3 million, and the NHL a little more than 2 million. The NFL has the most

traffic driven to its websites due to its updates of roster transactions in the offseason, post game

press conferences, behind the scenes access, sports bars broadcasting games around the country,

and pre and post game parties listed on teams official website.”(Yost, 2006)

Empirical Results

I recently posted a survey through surveymonkey.com to determine the value that sports

fans would rank competitive balance. 38 people participated in my survey, both male and

female. The survey was promoted through the Internet on facebook.com, and by word of mouth.

Table 1

Males
Females

Responses were analyzed to help improve my understanding of how people viewed

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competitive balance. All survey participants were unpaid, and their names were left anonymous.

To determine my subject matters interest, my first question was what was their favorite

professional sports league? The Five choices that I gave my survey takers where the following:

The NFL, The NBA, MLB, NHL, and Other. The results reflected that the NFL was the favorite

sport by more then 55% of my population.

TABLE 2

25
20
15
10
5
0
NFL NBA MLB NHL OTHER

My third question to my survey was to find out exactly why my population gave the

responses that they gave. So I asked my audience what determined their selection, being as

specific as possible. The following three responses, I highlighted because it shows fans enjoy the

NFL because of its competitive balance.

1) “It is the easiest to follow because of the schedule and it feels every regular season game is

worth something. In basketball or baseball a 5 game losing streak does not mean anything. If it

happens in football you‟re probably not going to make the playoffs.”

2) “I chose NFL because I love all sports, but NFL is my favorite. The competition is almost

equal, each week anything can happen, and one play could define a season for a team.”

3) “There is nothing more exciting than the NFL season. Its shorter than other leagues so every

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game is important. Anyone can win any game… and I love it!”

My next question had to do with attendance and competitive balance. I asked the survey

takers would they be more inclined to go to a game that they felt had a good level of competitive

balance or a game that they suspected to be a blowout? Results of the question number four

were a blowout. Nearly 95 percent of all the survey takers said that they wanted the suspense, the

drama, their hard working dollars to go towards a game that they did not know the predetermined

outcome of. Thus agreeing with NFL competitive balance pioneer Bert Bell.

TABLE 3

EVEN
BLOWOUT

I continued with the theme of how competitive balance plays an integral role between the

professional sports games and the overall attendance of games. I asked my survey takers in

question five: Would you go to a game if your team had a losing record? 92 percent of my

survey takers said yes they would still go to a game if their team had a losing record. I found the

results of question number seven quite interesting to see that only 86 percent of those same

survey takers would go to a game if their team of choice had two consecutive losing seasons.

My gut feeling told me that the two most popular professional sports leagues amongst my

population would be the NFL and the MLB. Keeping this in mind I asked my survey takers

which sport did they feel had more competitive balance amongst its teams The NFL or the MLB?

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The results reflected that the average sports fan doesn‟t believe that the MLB has made

significant enough strides in achieving competitive balance.

TABLE 4

MLB
NFL

86 Percent of my population said that they felt that the NFL had more competitive balance than

Major League Baseball. My next question asked do you think that Major League Baseball

should institute a salary cap to promote competitive balance and it was surprisingly almost even.

TABLE 5

YES
NO

52 percent of my population said that they believe that Major League Baseball should institute a

salary cap. 47 percent said that they felt that Major League Baseball should not institute a salary

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cap. Please note that I did not specifically state whether it should be a hard salary cap such as

the NFL or a soft salary cap such as the NBA.

Within the past five years we have witnessed suspensions, congress hearings, and

countless players testimonies under oath on whether they have or have not used performance-

enhancing drugs. Over the past few years all professional sports leagues have tried to clean up

their image both on and off the field. Public Relations and communications have never been as

prevalent as they are today. With this in mind I asked my population to weigh in on performance

enhancing drugs. My ninth question was do you feel that the ban of steroids has had an adverse

affect on competitive balance. I wasn‟t exactly sure how my audience would respond to this

question when I asked it. I tend to disagree with the results of my populations answers. 38

percent of my population answered yes, and 62 percent answered no.

My final question that I posed to my audience is a very simple one. Do you feel that

dynasty‟s have a negative impact on sports? Research has shown that if dynasties exist

attendance goes down along with ratings in team sports. However according to my survey only

14 percent of my audience responded that they felt that dynasty‟s had a negative impact upon

professional sports leagues. Around 86 percent of my population responded that they felt that

dynasty‟s had no affect on professional sports leagues and their interest level.

Interview

Ernie Palladino

-Following a team as closely as you do on a day to day basis what do you make of the concept of

"suck for luck" do you really think coaches, front office executives, and players would actually

lose a game on purpose in order to get a "can't miss NFL prospect"? If so do you think that a

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lottery system should be installed or should the NFLs reverse standings order draft remain intact?

A: Suck for luck is a cute idea offered up by frustrated fans. A version of it happens in virtually

every city, every year, where a team starts off 0-5 or worse. Sure, the fans say. Dump the last 11

games of the season so they can get that first-round savior. There's just one problem with that.

Teams will never dump multiple games. Maybe a team like the Patriots will appear to dump the

final game of a clinched playoff-bye season by leaving several key starters at home to avoid

injury, but even that's a stretch. These teams always try to win, if only because jobs of head

coaches, players, and GMs are on the line. Besides that, the league keeps a close eye on things

like dumping to keep the game legitimate. They never admit to it, but football gambling is a

billion-dollar business nationwide, and the NFL loves the attention. So they take pains to see that

coaches abide by injury-report rules the best they can (Belichick in unmanageable, after all) and

that games are played on the up-and-up.

I actually see no reason for a lottery system. The whole idea of the NFL is parity and competitive

balance, and what better way than to award draft picks in reverse order of finish. This way, the

worst have a chance to advance, and the best can potentially come back to the pack. Back in the

1950s, the NFL used to have a bonus picks. Each of the owners would put their hand in a bag

and pull out a piece of paper, and the winner would get to make a bonus pick before the first

round started. That's how the Giants got Kyle Rote in 1951. But that's as close as the NFL has

ever come to a lottery pick, and it has no plans to my knowledge of ever following the NBA

format. And just as well. It's a good system the way it is.

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-Having covered the Giants for 22 years do you feel Met Life stadium was built solely because

of lack of luxury suites in the old Giants stadium? How do you feel PSL's give NFL franchises

the upper hand when it comes to unshared revenue?

A: Absolutely. Even ownership will tell you there was nothing at all wrong with old Giants

Stadium. Good structure. Good sightlines. Problem was, not enough luxury boxes, which are

money faucets for franchises. MetLife has over 100 of those things, rented out to corporations

for hundreds and thousands of dollars per season. And that's not to mention the PSLs, which is

basically free money for the franchises. Honestly, I'm not sure if PSL's are counted as unshared

revenue under the new CBA. I don't think they are, as that money is supposed to be used to pay

down the debts of the new stadiums. But even if they are shared, franchises have made huge

hunks of money simply for giving fans the right to buy their game tickets.

-With competitive balance being one of the main focuses of the NFL's salary cap, draft order,

number of playoff births, standings, and schedule creation process how do you think that the

New York Giants have been one of the few teams to obtain a championship in every decade

since the 1980s?

A: It started with good drafting. The late George Young's picks of Phil Simms and Lawrence

Taylor in 1979 and 1981, respectively, set the Giants on the road out of the darkness of the mid-

60s to their re-emergence as a playoff team in 1981. Subsequent drafts brought players like

Harry Carson, Mark Collins, Carl Banks, and Jim Burt that created the 1986 championship team.

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A great trade for Ottis Anderson helped the Giants win the 1990 Super Bowl title. Once free

agency came into play in 1994, a great gamble by Ernie Accorsi in signing troubled

Carolina quarterback Kerry Collins, literally picking him off the scrap heap, led to a Super Bowl

appearance in 2000, And the remnants of Accorsi's final two drafts of 2005 and 2006 which

yielded stars like Justin Tuck, Corey Webster, Brandon Jacobs, and Ahmad Bradshaw helped

another Accorsi first-rounder, Eli Manning, put together a 10-6 season and that magical Super

Bowl run in 2007. Of course, free agency helped, but it all started with good drafts.

-As the NFL rule have enhanced to protect and promote offensive play in your opinion how have

all the recent rule changes in the past few years affected the construction of an NFL roster?

A: I think you're seeing a commitment to draft fast, shifty offensive and special teams players,

especially in the later rounds. Let's face it; everybody is getting faster these days. When you can

have a 325-pound tackle coming out of college who can run a 4.9, that's something. So the game

is getting faster, and the rules that encourage offensive play have only made it harder on

defenses. You don't see too many shutdown corners like DarrelleRevis coming out because there

just aren't any. To put some of these receivers one-on-one with a cornerback is often suicidal, so

defenses have switched hard to zone and variations of two-deep coverage. Defensive backs and

linebackers can't touch a receiver past the five-yard limit. Pass interference calls are becoming

more common by the game. It has all encouraged a throw-first league, and teams have responded

by stocking up on receivers. Witness the Giants' recent drafts which brought them Steve Smith,

Hakeem Nicks, Mario Manningham, and Ramses Barden, not to mention an undrafted pickup in

Victor Cruz. All quick (in Barden's case, tall, too), shifty, and fast. See Dallas with Dez Bryant.

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-How do you feel about the NFLs commitment to play games overseas? The concept of taking

home games away from NFL teams and playing them in London & Canada? Do you feel that the

NFL will eventually put a franchise overseas? If so do you think it would put those teams at a

competitive disadvantage when it came to signing free agents.

A: I don't think any player would NOT sign with a team because of the prospect of playing

overseas. It's dollars they're worried about, and they don't care if they have to travel. Personally, I

can't stand sending these teams to England. Owners are screwing their fans out of home games to

make a big splash where they're simply not committed to placing a franchise in the near future. I

don't think they ever will, unless they intend to start an NFL Europe division. But I don't think

Europe will support it. It didn't work with the NFL Europe developmental league. They have a

following in England, but elsewhere it's just a bunch of Air Force and Army guys who are

stationed over there, hungry for some good old American sports. Not enough to support a

franchise. Canada might be the better choice, but again, with the exception of the Bills and

perhaps Lions, which are just across the river from Toronto and Windsor, I don't think there'd be

much support. They like the CFL up there.

- In the past NFL it has been well documented that owners have threatened to leave there host

cities if renovations of stadiums where not met by the city's subsidization. With Los Angeles

being available to host an NFL franchise do you think any team is going to move there?

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A: I've heard Minnesota was threatening. Not sure if their new stadium initiative went through,

though. So I'm not sure if that's on the table.

- What do you think of the idea of an 18 game schedule? Do you think it would have an adverse

affect on competitive balance?

A: I don't think it would hurt competitive balance, per se. They'd all be playing the same amount

of games. The plan would be to turn two of the preseason games into regular-season games,

which would give coaches two fewer games to evaluate young talent. That could have an adverse

effect on roster composiiton, but that would be a problem all teams would face. What it would

hurt is late-season performance. You see the amount of injuries happening weekly. Imagine two

more games, played at a higher level than any preseason game. The potential to lose half a roster

in those two last games heading into the playoffs is astronomical, and that's the last thing anyone

wants to see -- playoff teams competing with second-string quarterbacks, third running backs,

backup D-linemen and such. It just wouldn't make for good postseason play. But

again, competitive balance is a different conversation. All the teams would have to face these

challenges. Injuries don't discriminate between teams. So I don't think there would be any

problem with competitive balance. The rule of thumb today is, the healthiest teams are the ones

that go far in the postseason. That will always remain true.

- What has been the biggest change you have scene in your career covering the NFL in regards to

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competitive balance? Do you believe any other professional sports league besides the NFL can

operate and generate as much value in city‟s such as Green Bay, Jacksonville, Buffalo, or

Indianapolis? If so do you believe it would be able to have the same opportunity as the other

teams in the league to contend for a championship?

A: Free agency in 1994 brought a sea change to the league, one which I have long abhorred. In

a way, virtually every team has a chance of winning on Sunday. But that's only because teams

are unable to keep their most valuable talent around. Free agency has allowed top-flight athletes

to leave their teams and go for bigger bucks elsewhere, a move which often doesn't work out for

either the signing franchise or the player. He gets his paycheck, but he makes no real impact on

his new team because he has to fit into a different system with a different coach and different

teammates. That's why you see different teams in the playoffs every year. That's okay, but I

mourn the loss of the truly great teams -- the Bill Walsh 49ers that were able to keep talent like

Joe Montana, Jerry Rice, John Taylor, and Roger Craig together year after year and win

championships. I always admired greatness, but that doesn't exist anymore. Even the Patriots,

with their three Super Bowl titles, had to do it with new, key members every year, most of whom

are no longer there. It's the difference between greatness and very good.

There is no other league like the NFL. Its profit-sharing, virtually non-existant in other leagues

(luxury taxes don't approach the money owners divvy up among themselves in the NFL) makes it

possible for Green Bay and Indianapolis and other small-market teams to turn a profit, even in

the bad years. And that's the reason these teams are able to compete, if they choose, in the free

agent system. The salary cap forces them to spend a certain percentage of the cap money, be it on

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retaining their star veterans or bringing in new talent. So everyone is theoretically spending close

to the same amount. There are virtually no teams in the NFL that have a Yankees-Royals

relationship (200 million budget as opposed to $50 million). As such, each of these

franchises has a shot, as we're seeing with Green Bay the past couple of years. The same would

be true of Major League Baseball if it ever put a cap system in place. But the owners would

never allow that. And let's face it, the NBA had a soft cap that didn't really create competitive

balance. Still, with basketball and hockey, half the league gets into the playoffs, anyway, so how

hard is it to be just good enough for a playoff berth?

-Where do you see the NFL going forward in the future?

A: Well, this CBA allows for another 6-to-10 years of labor peace, which is huge in sports today.

The NFL Network will eventually grow into a hugely profitable entity, to the point where the

NFL won't even need the networks anymore. None of this will effect competitive balance, as the

attraction of the league will remain "On any given Sunday..." You might be wise to invest in a

team now, because they're only going to grow in value.

Interview

Jamey Eisenberg of CBS Sports

- Following NFL as closely as you do on a day to day basis what do you make of the concept of

"suck for luck" do you really think coaches, front office executives, and players would actually

lose a game on purpose in order to secure the top pick and land a "can't miss prospect"? If so do

you think that a lottery system should be installed or should the NFL continue to use its reverse

standings order?

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A- Coaches and players would never try to lose a game on purpose. Losing coaches don't get

hired again, and players are not going to willingly try to fail to allow someone else to potentially

take their jobs. As for owners and front office personnel, they might want their team to lose with

the hopes of landing a standout prospect, but they can't do that in an obvious way because they

could lose their fan base and, more importantly, potential local advertising money.

- How do you think social media sites such as Twitter, and Facebook have impacted the game of

football for players, coaches, and general managers? Is this positive or negative for fans of the

NFL in terms of brand and image?

A-It's always a positive when people are talking about your brand, whether positive or negative,

because it means you're relevant. Now, you'd rather have things trending on Twitter or being

posted on Facebook about a great play, a new hire or signing or a team like Green Bay chasing

perfection than something like a player shooting himself in the leg. It's understandable when the

NFL steps in to stop a player from making a fool himself like Rashard Mendenhall last year with

his 9-11 comments. But Twitter, for example, gives you instant access to the game to draw

attention. For example, Tim Tebow does something great, people post it on Twitter and then fans

can't wait to watch the highlights. That impacts TV money, which all feeds back to the NFL

eventually, which is a win.

- As the NFL rules have enhanced to protect and promote offensive play in your opinion how

have all these rule changes affected the construction of an NFL roster?

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A-Yes. Teams are looking more for impact skill players than interior linemen and running backs.

Just look at the top of the 2011 NFL Draft with four quarterbacks, two wide receivers and one

cornerback drafted in the Top 12 picks. It's not like you are going to overlook those other

positions. Far from it. But look at the elite teams this season -- Green Bay, New Orleans, New

England -- they rely on throwing the ball to win games, while teams like Pittsburgh and

Baltimore are trending in that direction. It's why even though the Broncos started 5-1 under Tim

Tebow that John Elway isn't set on him as the quarterback of the future. Being a run-first team in

this NFL doesn't cut it anymore because teams can, and will be able to throw at will based on the

new rules that protect quarterbacks and receivers.

- In terms of competitive balance the NFL has altered and adjusted rules throughout the years to

promote player safety and offense. Do you think that in terms of competitive balance any new

rule changes should be added or taken away from the game?

I don't like the new kickoff rule. Moving the kickoffs back might have cut down on some returns,

but teams are still running the ball out of the end zone and players are still taking hits. The NFL

will likely say concussions are down, but players are still taking a beating at a high rate. It never

made much sense to me.

-Your thoughts on Expanding Goal posts, chips in footballs to see if the ball crossed the endzone,

and other creative tools to expand accuracy of officiating a game? Also do you think that head

coaches should be awarded another challenge if they are correct in all three of their challenges or

do you feel it will slow the game down to much?

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A-I like the replay system as it now. You should keep the human element in the game as much as

possible. If a referee makes a mistake, they will be reprimanded, but they have an opportunity

now to challenge those mistakes to get it right. Yes, adding an additional challenge could be

useful to reward those coaches who take chances and get it right with their challenges.

- Do you like the current playoff berth situation or would you like to see any additional teams

make the playoffs?

A-I like it as it is now. Six teams on each side is fine. As we saw in 2010, you want the best of

the best. More teams getting in would be more teams like Seattle with sub-.500 records making

the playoffs, and that would not be a good product.

- In terms of competitive balance in the NFL do you think dynasty's or undefeated teams are

good or bad for the NFL?

You want teams to remain competitive over a sustained period, but you don't want the same

teams winning each year. Green Bay will be competitive for several years just like New England,

Pittsburgh and Philadelphia have been for the past decade. They don't win each season, but they

are consistently in the playoffs, and you have to like that when teams can survive free agency

and roster turnover to still be successful.

- How do you feel about the NFLs commitment to play games overseas? The concept of taking

home games away from NFL teams and playing them in London and Canada? Do you feel that

the NFL will eventually put an expansion team overseas? If so do you think it would put that

62

team at a competitive disadvantage when it came time to signing free agents?

A-It's a bad idea because of travel and wear and tear on players. You can't say on one hand you

are worried about health and safety and then on the other hand make a team from the West Coast

travel to London. Expansion, as we've seen, also dilutes the product. Too many teams is bad for

the game on the field.

- In the past NFL owners have threatened to leave their host towns if renovations of stadiums

where not met by the city‟s subsidizations. With Los Angeles being available to host and NFL

team do you think its a team is going to move their?

A-Eventually, yes. It will either be Minnesota, Jacksonville or San Diego. Moving the Chargers

makes the most sense logistically.

- What do you think of an 18 Game schedule? With the sport of football being as demanding

physically as it is do you think it would have an adverse affect on competitive balance?

A-When you think about it, if they add two games and take away preseason games, it will

balance out anyway. In the preseason, teams play a quarter in the first game, a half in the second

game and three quarters in the third game. It basically is a full game over four weeks, so they

already are playing the equivalent of 17 games. Well, if you eliminate the preseason and two

regular season games I don't expect it to have much of an impact. The problem would be if they

keep the preseason and add two games because then injuries will rise dramatically.

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- Growing up in Florida what is the main difference to you in competitive balance in the NFL

and other professional sports?

A-Football is more passionate in Florida than baseball, basketball and hockey, especially in

South Florida, The Dolphins have been here the longest of any of the other professional teams,

so there are less transplant fans in football by comparison to the Marlins, Heat and Panthers.

When the Dolphins win, this town is football crazy. When the Heat or Marlins win -- and they

have three championships since 2003 -- the town is excited, but it's not the same. Like most

cities, the NFL is king.

- Can you please share your thoughts on how Fantasy Football has expanded the growth of the

game of football?

A-It's made casual fans more aware of the game. You can still root for your own team, but now

you get an entire scope of the rest of the league. You know more about other teams and their

players, their coaches and systems and follow games like never before. You don't stop watching

when your favorite team leaves the field.

-Where do you see the NFL going forward in the future?

Obviously, as you asked earlier, the possible expansion overseas could change the game. Longer

seasons, more travel for players, continued rule changes could continue to enhance or detract

from the product we see now on the field. But the NFL will likely remain the ultimate man's

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sports. Whoever hits the hardest, runs the fastest, counterpunches the puncher will likely win,

and that's why we love it.

Interview

Matthew Gulino

-Should major league baseball more technology such as instant replay or challenges in terms to
promote competitive balance?

-How can Major League Baseball further help teams like the pirates who haven't made the
playoffs in almost two decades?

- Do you think dynasties are bad for sports?

- Do you think the ban of steroids has helped or hindered the competitive balance in sports?
Baseball?

-The NFL has played games overseas. The MLB has also played games overseas. Do you feel
that eventually the MLB will put a team in Puerto Rico, japan or another overseas location?

-Do you think the expansion of playoff berths to 6 teams will increase competitive balance in the
Major League Baseball?

-After this years world series coming down to the 7th game in the world series which home field
was determined by the all-star game win by the national league not the record how do you feel
about the world series home field advantage being determined by who wins the all-star game?

How do you feel about the new draft rules in which the MLB is trying to promote competitive
balance and avoid a situation in which it had this year with the rays having 14 first round draft
picks? Also the new rules that make sure all international players bid on must be made public to
all?

-How do you feel about the interleague play everyday?

Do you feel the MLB should have a salary cap? How do you feel about how small market teams
use the luxury cap revenue?

Where do you see the mlb going forward? How can the MLB set up more steps to create

competitive balance?

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Future Considerations

Some future considerations that the NFL may want to do to increase competitive balance

in the future is add an extra challenge if the coaches previous challenge is found to be correct.

Currently the system allows coaches the ability to only challenge three times. Regardless the

outcome of the three challenges the coaches are not allowed any further challenges. I believe that

if the coaches are correct three times they should be awarded another challenge until it is proven

they are incorrect. The NFL may want to consider adding chips in the footballs when they cross

the goal line that light up when the balls crosses the plane. The NFL could also consider putting

the chip in the ball to sense whether it crosses the uprights or not on a field goal attempt or an

extra point.

The NFL could try to expand the league over seas to London and Mexico City as they are

trying to introduce the game at a grass roots level overseas. The NFL has played games in

Toronto, Japan, Germany, China, and Mexico City as part of the international and preseason

play. The NFL can borrow the ideas that the NBA had with its growth in China by putting

together highlight shows and broadcasting them for free on popular television networks. If the

NFL wants to get serious about international expansion they are going to have to develop grass

roots leagues for youths, and market the game from the bottom up. The NFL should show more

of a commitment on its website to its intentions of marketing overseas currently the NFL.com

website only has one page dedicated to its NFL international series game and a few highlights. If

possible each potential destination should have its own website such as www.NFL.com/Japan

where fans can find out where games can be watched and what channels the fans can watch

highlight shows or live games.

The NFL can also continue to expand its brand loyalty by continuing to target key

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demographics such as women and Latin Americans. The NFL has made a concentrated effort by

creating a women‟s clothing line and having a whole month dedicated to breast cancer

awareness. In highly populated Latin cities the NFL has made a commitment to expanding the

popularity to the fastest growing population in the United States Latin America. This is an

important step to the growing popularity of the game as the NFL continues to be one of the most

innovative of the professional leagues. The constant turn over of standings from year to year will

be a draw to new fans. Some future considerations in regards to markets for football in the

United States that may be capable of operating an expansion team could be Los Angeles, San

Antonio, Portland, Salt Lake City, Alabama, and Virginia. To develop talent the NFL may want

to consider creating a minor league farm system similar to Major League Baseball. The games

could be televised on the NFL network during the week, and tickets could be relatively cheap to

hit a demographic of fans that normally couldn't afford tickets in smaller populated cities.

Coaches with similar coaching philosophies could develop talent and they could readily be

available during the season to be called up to the team. New stars will emerge for the NFL

allowing them more of an opportunity to gain success both in competitiveness and profitability. I

also see the NFL magazine, which is going to launch sometime in 2011 becoming one of the

biggest magazines in America.

Conclusion

In conclusion my theory of competitive balance is the prevalent in every aspect of the

decision making process of the NFL. It is the business model and structure that has guided the

NFL to the tremendous amount of success that the league has sustained over the past 60 years.

So while many different aspects may measure success, the NFL has proven to be the most

67

successful professional sports league season after season. Recently the league has escaped

another work stoppage and the league is set up for growth for years to come. The torch has been

passed from Bert Bell, Pete Rozelle, Paul Tagliabue, to today‟s commissioner Roger Godell.

One of the main reasons competitive balance works so well in the NFL is the fact that the

NFL shares all television revenue. Data I have uncovered proves beyond a reasonable point of

doubt that this is what keeps small market teams on equal footing with the larger populated

franchises. Throughout my study the schedule creation process, reverse standings order of the

draft, and standings order set everyone to finish with a record of at least 8 and 8. What coaches

and executives do from that point on is up to them.

It is to my determination by my study that the NFLs popularity, ratings, and team

valuations will continue to raise over the next few years. Week by week new stars are being born

and the NFL has the capability‟s to market them on their own network, other networks, radio,

podcasts, website and beyond. The difference in franchise valuation between the 32nd ranked

team to the top team isn‟t as far off as you would originally think. The main reason behind this is

the NFLs commitment to competitive balance.

In conclusion it is clear and obvious to me by my research that the NFL takes every step

to promote competitive balance. Unfortunately no matter what the NFL does to put all teams on

equal footing, not all teams can achieve the same success. The problem that exists, is that not all

of the leagues scouts, general managers, coaches and players are not all balanced. The steps to

achieving competitive balance for teams are set up. It is a matter of what the teams and the

owners do from that point on.

Without spending limits in professional sports, there is a danger that a few high-budget teams will

dominate each league. Theoretically, a salary cap would narrow the spread among teams in total player

68

salaries, prevent an overzealous owner from monopolizing playing talent and, presumably, improve

competitive balance.

References

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Yost, M. (2006). Tailgating, Sacks, and Salary Caps. Kaplan.

Vrooman, J. (2009). Review of Industrial Organization.

Adler, J. (2011, August). About.com. Retrieved 2011, from
http://football.about.com/od/miscinformation/a/detdraftorder.htm

Barker, J. (2009, June). Baltimore sun. Retrieved 2011, from
http://articles.baltimoresun.com/2009-06-25/news/0906240127_1_ravens-psls_seat_licenses

Barriger, A. K. (2004). Has a Salary Cap In the NFL Improved Competitive Balance.
Middlebury College Economics Discussion Paper, 2011.

Beekers, T. (2011, July). Field Gulls. Retrieved 2011, from
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Bonser, K. (n.d.). How Stuff Works. Retrieved 2011, from
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History Of The USFL. (1997, January). Retrieved 2011, from
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Jorzsa, M. (2010). Football Fortunes: The Business, Organization, and Strategy of the NFL.
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NFL. (2011, March). NFL.com. Retrieved 2011, from
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season

NFL.com. (2011, April). NFL.com. Retrieved 2011, from http://www.nfl.com/combine
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Oriard, M. (2009). Brand NFL: Making and Selling America's Favorite Sport. UNC Press.

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