NFL's Silent Stakeholders

Hundreds of businesses and thousands of workers across the U.S. stood to lose billions of dollars if the NFL lockout hadn't ended

By Rick Horrow and Karla Swatek

From start to finish, the National Football League‘s lockout lasted 136 days. All that was missed over those four-and-a-half months of collective bargaining negotiations were minicamps, organized team activities, and one preseason game. Judging by the unprecedented interest in this upcoming NFL season, you would think the league was ending a multiyear hiatus. Therein lies the amazing power of the NFL. A work stoppage that did not exactly result in any lost work is single-handedly responsible for increasing the league’s popularity. Maybe NFL Commissioner Roger Goodell and National Football League Player Assn. Executive Director De Smith should take their negotiating talents to Washington, where the pair can help solve our nation’s debt ceiling crisis.

Of course, players and owners are happy to be getting back to work. The new 10-year deal guarantees labor peace through 2020. The deal calls for players to reduce their share of league revenue to 47 percent, from roughly 53 percent under the previous contract, in return for promises to double that revenue during the life of the agreement. Under the collective bargaining agreement, the NFL’s salary cap drops to $120.375 million per team this season, down from $128 million in 2009, but teams are required to commit more to player salaries in a given season. That commitment sees the salary floor rise from 85 percent to 89 percent. Players also get lifetime medical coverage, better benefits for retirees, and a reduction in their offseason workload.

Lost in the post-lockout hysteria are the lesser-known winners from the new collective bargaining agreement (CBA). While not nearly as prominent or vocal as players and owners, these stakeholders had billions of dollars on the line. They include:

Bars and Restaurants

For bars and restaurants across the country, the NFL is a big moneymaker on Sunday, Monday, and some Thursday nights. Football game days bring in five to 10 times more revenue than traditional nights, according to the owner of Village Pourhouse in New York City. And the impact would not have been limited to markets with NFL teams. Tailgators, a Fargo (N.D.) bar, stood to lose $80,000 in gross sales if the NFL punted on its season. In honor of the new labor deal, Buffalo Wild Wings is giving six free wings to the 45,000 fans who signed up for the company’s "Save Our Season Facebook Petition."

Fantasy Football Companies

Fantasy football is an $800 million industry with more than 25 million players annually. In the absence of a season, the companies running leagues, publishing draft guides, and providing on-going analysis would have been out millions of dollars. Now, as fans flock to their favorite fantasy football websites, advertising and sponsorship revenue and user subscriptions will start flowing back in. That is good new for CBSSports.com, which will not have to make good on its promise to offer refunds based on the number of games played. Restaurants also are capitalizing on the fantasy frenzy. Applebee’s and Buffalo Wild Wings are giving fans $100 gift certificates to host their drafts.

Indianapolis

The NFL held off awarding a host city with the 2015 Super Bowl in case the lockout cost Indianapolis the 2012 game. As soon as the NFL announced the new CBA, Indianapolis’ Super Bowl host committee told hoteliers to start booking rooms. Central Indiana Corporate Partnership President Mark Miles said 140 Indy-area hotels had been holding 18,300 rooms, not knowing when, or if, the lockout would end. Now Indianapolis can expect 150,000 fans to spend a week in the city for the Super Bowl, bringing with them up to $400 million in local economic impact. There are not many other reasons people would descend on Indianapolis in frigid February.