Monday, September 19, 2005

OH The Parity!!!

Say what you will about the structure and fairness of the NFL, I don't think there is any way to deny that the system has created a league where each club at least has a chance to field a competitive team. The Colts, arguable the league's best team, operate at the low end of the revenue spectrum, while teams like the Redskins & Texans pull in a ton of revenue but are hardly challenging for a playoff spot. The main reason for this is the hard salary cap in the NFL, combined with the ability for teams to cut & sign players mid-contract and dynamic scheduling based on performance. Revenue sharing also occurs for national television deals and ticket sales, but local sponsorship income and luxury suites are exempt from sharing and cause the huge gaps in revenue that exist between the small- and large-market clubs.

Despite this considerable gap, the other rules (notably the payroll cap) have caused teams to focus on building via the draft & shrewd personnel decisions, leading to an entirely new and exiting "game inside the game." This is something that is unique to the NFL and, I think, drives much of the interest in the NFL draft. Also, the market for management and coaching will continue to explode, as teams realize the playing field is (relatively) level and the only way additional funds can help is by spending more on those who make the tough personnel decisions.

Tell me if I'm way off base here, but this seems to be a good system (for fans of the sport, not just the large-market teams) that other pro leagues should model themselves after....

Friday, September 02, 2005

Don't talk to me about playoffs....

I fail to understand college football "traditionalists" who claim any playoff system would destroy the integrity and individual personality of the sport. Many believe schools are unwilling to support a playoff-based postseason because it would deem bowl games irrelevant. The issue is the lucrative financial rewards schools receive from sponsors of these bowl games - the private companies (FedEx, Tostitos, Nokia) have signed agreements with large conferences (and the football powerhouses that dominate them) to essentially give the big-name schools a monopoly over the most lucrative bowls.

This creates a system where only the large schools from BCS conferences will make the money that allows them to expand their programs, improve facilities, recruit top athletes, and essentially improve their football programs. I understand that these companies want to attract the large and loyal fan bases that tend to follow big-time schools, ensuring a massive live audience and high television ratings, but the national championship (at the very least) should be determined by a team's merit rather than what they did in 1965 when the current fans graduated or how big and football-crazy the state is.

Even from a financial standpoint, adopting a playoff system makes sense for every university, including the ones benefiting from the current system. A 2004 proposal (including a 16-team playoff, I think) would have generated $376 million, more than twice the current amount for those teams participating. This system also creates an incentive for football programs to improve, as the money they make from one good season will put them in a position to improve their schools. The competition, meanwhile, should improve all of college football for its consumers: the fans.

The only semi-legitimate argument I have heard from playoff haters is that regular-season games would lose the exciting, do or die mentality they currently generate. I think this is far outweighed by the benefits of the new system, which is not only more fair and satisfying, but also creates a series of exciting playoff games to replace the largely ignored and irrelevant secondary bowl games. I don't know anyone who watches a bowl game if it has no national championship implications or doesn't involve their favorite team. A playoff system would draw in a whole new viewership while creating a new incentive for players and coaches, who still have a shot at a national championship, to perform at their best. An 8- or 16-team playoff (with separate sponsorships for each level and financial rewards for advancement) would still make each game important, and could easily accompany the 50 or so other bowl games that reward the decent, but not best, teams....