NFL Braces for a Costly Labor Fight
As Sponsors Get Jittery, League Says it May Lose $1 Billion Even If Next Season Is Saved
EA Sports, a top merchandising licensee, has already requested a $30 million reduction in its scheduled payments because of the labor uncertainty, according to people with knowledge of the discussions. An EA Sports spokesman confirmed that talks with the league are ongoing.
If there’s no deal in place by March 1, the NFL report said the league could expect to lose $125 million as existing corporate partners demanded discounts on sponsorship deals and others decided not to sponsor late-season events like the Pro Bowl.
The report said owners could expect to lose $400 million in March alone, the prime month for fans to renew their season tickets and for the league to organize games abroad. From April through August, the report said losses from a labor deadlock would climb by an additional $500 million as preseason games are missed. NFL officials said each team could expect to lose about $8 million for every canceled home game.
WSJ.com
10/13/10
