CFL/CFLPA Labour Negotiations -- Deal reached

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Shi Zi Mi
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Arash Madani had these things to tweet:

Arash Madani ‏@ArashMadani 1h

Some thoughts, in the next few tweets, on the #CFL and CFLPA standoff, as negotiations hit a critical session today between both sides...

1. Lawless and Scianitti report the PA has proposed a $7 mil cap. So they're dreaming. But key: it's percentage of revenues tied to cap #CFL

2. Some players have 'report and pass' bonuses in their deals. Can't see a strike until cheques clear after training camp physicals. #CFL

3. My info on new TV deal: 2014 ($40 mil), 2015 ($41 mil), 2016 ($42 mil), 2017 ($43 mil), 2018 ($44 mil). Option to renew in 2019. #CFL

4. Only about half of #CFL players that go to camp would get strike votes. Put simply, rookies don't since they have yet to pay union dues.

5. Today is "important" in labour talks between the #CFL and the CFLPA. Could help the process. But next to no chance a deal gets done today

6. Disappointing, and irresponsible, they waited so long to BEGIN bargaining talks. They're now where they should have been in March. #CFL

7. The process has revealed how the #CFL and the CFLPA have no clue how to handle the public part of a labour negotiation.

8. Cohon has long discussed the #CFL being "accessible" to its fans, yet hasn't updated its most important stakeholders a thing about this.

9. Player safety absolutely cannot be held as any kind of bargaining chip in pro football labour negotiations. The #CFL did. Disappointing.

Finally, 10. This is not hockey or hoops (as we've seen of late). Pro football teams need training camp. Time is truly of essence here. #CFL

Will have updates from today's #CFL and CFLPA negotiations. I'm told the league may later issue a comment, depending on how things go today.

Jerome Messam's strike ballot. MT @JMessam: As a #CFLPA we need to stand united through these CBA negotiations! #CFL pic.twitter.com/eVAT2GjbCO
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Shi Zi Mi
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CFL Official Feed ‏@CFL 20m

BREAKING NEWS: Read @CanadianCommish's open letter to #CFL Players regarding league’s offer to CFLPA - http://on.cfl.ca/x6kqz

Dear CFL Players:

On May 15, 2014, we presented your Executive Committee with a full and comprehensive offer that unfortunately was rejected. We believe that this offer is fair and reasonable, and we want to share its details with you.

If ratified by the Players, the CFL offer would provide the following:

Financial Terms
• Increase the salary cap by 9% this season from $4,400,000 to $4,800,000 per team (and further increasing by $50,000 each year over the following five years to $5,050,000)
• Effectively increase the average player salary up to 12% this season from $82,904 to $92,917 (and further increasing over the following five years)
• Increase the minimum player salary by 11% this season from $45,000 to $50,000 (and further increasing to $55,000 over the following five years)
• A further increase to the salary cap of $100,000 per team if the CFL receives more television revenue from TSN under a renegotiated broadcast agreement for each remaining year on the CBA
• Maintain the $450,000 annual payment to the CFLPA for Player marketing and other rights

This has been a long and difficult process for all involved. And when it comes right down to it, we just want to play. So, we have also offered to pay a ratification bonus of $3,000 to veteran Players and $1,000 to rookie Players (on a team roster as at June 22, 2014) if this agreement is ratified on or before June 2, 2014.

Player Safety & Welfare
• Immediately add two players to each team’s Active Roster
• Immediately restrict the number of contact practices during the regular season
• Maintain 2013 CFL policy to restrict the number of contact practices during training camp
• Maintain all current Player pension, medical plan and life insurance benefits
• Maintain all CFL annual payments for Player counselling and rehabilitation support under the CFL-CFLPA Drug Policy

On May 20, 2014 your Executive Committee provided us with their financial proposal in response to our offer. The CFLPA’s financial proposal provides for a salary cap increase to $6.24 million in 2014, as well as approximately $240,000 per team per year in other monetary increases to pre and post-season compensation and pension plan contributions per year. From 2015 forward, significantly more would be added to salary cap based on a revenue sharing model. We advised the CFLPA in no uncertain terms that their proposal was not realistic, and would not form the basis for any financial settlement. In fact, it would threaten the very existence of the CFL. We have obviously rejected the CFLPA proposal today in negotiations, and we have told your Executive Committee that we are prepared to meet in bargaining at any time once they are prepared to discuss a fair and reasonable settlement that makes sense for both the Players and the League.

Over the last five years, we have improved the foundation of our league. However, our work in this regard is not yet complete. Continued investment, focus and effort is required to achieve our vision of a strong, stable, and sustainable CFL. And while we remain mindful of the additional steps we must take, we also recognize the progress, together with the Players, that we have already made. And this progress is reflected in this offer.

The CFL offer strikes an appropriate balance of, on the one hand, providing significant compensation increases and health & safety improvements to the Players while, on the other hand, creating an environment in which the League and its teams can continue to build for a strong and stable future. It provides a fair share to the Players, and helps us to effectively manage our businesses with a view to a strong future - for everyone.

Over the last 25 years, with limited exceptions, CFL teams have either operated at a financial loss or struggled to generate even the slightest amount of profit. There are numerous factors that contributed to this, but central among them was the unbalanced relationship between revenues and all costs. Quite simply, the revenues being generated from the primary revenue streams of ticket sales, television, and sponsorships were insufficient to meet the essential operating requirements of the teams. Investments were needed in infrastructure (notably in stadiums and training facilities), and in modernizing our operations (i.e. developing our internet capabilities, and actively building competitive brands in our largest markets). However, without operating profits these investments were either insufficient, or not made at all, at both the League and team levels.

A reasonable, fixed salary cap provides the foundation for a sensible business model. The League and teams have started to invest in their own futures. They have increased the skill and professionalism of their business leaders and staff, consistently and thoughtfully begun to strengthen their brands in their local markets, and have spent or committed $175 million in private money towards major stadium and infrastructure projects to create a modern CFL. Instead of reverting back to the days of old – limited investment, limited growth, significant instability, and a stagnant or declining business - we have a credible opportunity to boldly look to the future. In this new scenario, everybody ultimately wins.

If you have any questions about this offer, please speak with your team’s Players’ Association representative or a member of your Executive Committee.

I want to thank you for considering this offer. This is not an easy process. The business side of football is never as much fun as the game itself. But we all share a responsibility to ensure that our league is strong for this generation of CFL fans and those that follow.

Thank you for your consideration and your dedication to our League.
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Shi Zi Mi
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Arash Madani ‏@ArashMadani 23m

The #CFL goes on the offensive. Publicly tells players it is willing to increase cap to $4.8 million, and will raise minimum salary to $50k.

As you'd expect, the #CFL leaked their latest offer to players to their TV partner, then went public

Have a very hard time believing the CFLPA will accept this offer from Cohon. The #CFL is now returning serve, this time publicly.

Breaking down the #CFL offer: About a $600k cap increase in year 1. Teams each get $2.7 more million from TV deal. Can't see PA accepting.

Cohon: "We have obviously rejected the CFLPA proposal today in negotiations." Talks have broken down. #CFL

There will be a labour stoppage in the #CFL in 2014. Bank on it.

The two additional roster spots were agreed upon last month. This isn't news. This is Cohon trying to garner public support. #CFL

Effectively, the #CFL is offering $4.5 mil of the $25 million in new TV cash to the players. Union will say no. Hence, labour stoppage ahead

Cohon on revenue sharing: "We cannot agree to an approach that would focus solely on our teams' revenues." Stalemate, right there. #CFL

Reaction from #CFL players to the commissioner's statement begins... RT @dantemarsh: WOW.....SMH.....

Cohon: We need to invest in digital properties, social media, marketing and "the fan experience in our stadiums." Doesn't divulge plan. #CFL

Cohon on the latest offer from the players: An "unrealistic proposal which, if adopted, would threaten the very existence of the CFL." #CFL

Cohon: "We admire and appreciate what our players do on the field and in the community. They deserve to be paid fairly." Uh, what? #CFL

This $3,000 "ratification bonus" for vets and the $1,000 bonus for rookies is a joke. Just out there by the #CFL to get public support.

Cohon: "We still have a long way to go to realize our vision of a strong, sustainable league." Each Nov. he's said #CFL is now exactly that.

Annnnd the #CFL has postponed its conf call with the Ottawa RedBlacks, in light of the labour mess. It's about to get *real* ugly, folks.

Regardless of where you stand on the issue, the #CFL and its players owe the people of Ottawa a huge apology if this standoff goes into July

While both commissioners took strides forward for the #CFL, Tom Wright's legacy is the failure of Ottawa. Cohon's may be a labour stoppage.
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Shi Zi Mi
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News1130 Sports ‏@News1130Sports 21m

#BCLions gm Wally Buono on a conference call right now. Looks like the comish is updating the gm's on the latest labour talks.

#BCLions owner David Braley has yet to take part in the CBA talks. That could change soon.
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Shi Zi Mi
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CFL Official Feed ‏@CFL 7m

More information on #CFL offer to CFL Players - http://on.cfl.ca/x6qpO

Dear CFL Fans:

Thank you for your patience and understanding during our contract talks with our players.

Out of respect for our players and the negotiation process, we have had little to say in public. But now that the talks have reached a critical juncture, I want to provide you, the most important people in the CFL, with an update.

Today, we have directly communicated to CFL players the full details of our offer to them.

It is fair and reasonable. It would increase the average player salary by 12 per cent this season, to $92,917. It would increase the minimum player’s salary by 11 per cent this season, to $50,000. It would increase the salary cap by nine per cent this season from $4.4 million to $4.8 million per team. More increases would come over the life of an agreement.



Unfortunately, the union’s bargaining team has rejected this offer, and instead put forward an unrealistic proposal which, if adopted, would threaten the very existence of the CFL.

This is why we are now communicating directly to the players. The details of our offer, in a letter from me to the players, are posted on CFL.ca.

You may hear a lot in the media about revenue sharing. Our offer would share increased revenue with our players. But we cannot agree to an approach that would focus solely on our teams’ revenues while ignoring their costs and the investments we must make to modernize, stabilize and maximize the CFL.

For example, our teams are directly investing $175 million in new stadiums and stadium improvements. Like your mortgage, these costs have to be financed over several years. We also need to invest in our digital properties, our social media, marketing and ticketing, and the fan experience in our stadiums. We need to serve you better to continue to earn your support and attract new fans.

Like you, we want football. We want training camp to open and our full pre-season and regular season schedule to be played. We don’t want a work stoppage.

Like you, we admire and appreciate what our players do on the field and in the community. They deserve to be paid fairly.

But also like you, we love this league. And that means we have a responsibility to you, and future generations of fans, to keep it strong.
Thanks to your support, the CFL is in a better place today than it has been in years. And we have made an offer that reflects this growth.

But we still have work to do to ensure all of our teams can make a profit, which is crucial to attracting the next generation of owners, at the same time we attract new fans. We still have a long way to go to realize our vision of a strong, sustainable league that can succeed in today’s rapidly changing business climate, and in every market.

It was a long winter in Canada. And like you, we can’t wait for the season to start. But we owe it to everyone who loves the CFL to seek an agreement that’s fair to our players and right for our league and its future.

Thank you again for your patience and all you’ve done to help us grow.


Mark Cohon
Commissioner
Canadian Football League
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Shi Zi Mi
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Mike Beamish ‏@sixbeamers 8m

Getting serious: #CFL commish Marc Cohon breaks CBA embargo. Puts the onus on #CFLPA to be fair and reasonable. Standard negotiation tactic.

Arash Madani ‏@ArashMadani 7m

A labour stoppage would be vicious financially in Regina and Winnipeg. Would hurt Edmonton and Calgary. But Tor, Ham, Mtl lose money. #CFL

Arash Madani ‏@ArashMadani 4m

No mention of player safety in Cohon's letter to players. But as reported earlier, #CFL refused to include it in CBA: http://www.sportsnet.ca/football/cfl/pl ... otiations/

Mike Beamish ‏@sixbeamers 3m

#CFL's latest proposal would give players just 20 per cent of expanded television revenue. Who's providing the show here?
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SammyGreene
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Not good at all that talks today have already broken off. Hopefully the urgency level picks up dramatically now that the CFL has gone public with its proposal.

Both sides definitely still have something to give. As a lifelong fan of the Lions and this league just give me a business model that I can breathe a little easier each year about the financial outlook. There are definitely some vulnerable markets out there and even here in Vancouver we're always concerned about attendance and the Lions bottom line. Give the players their share and at the same time make sure the new TV deal puts all 9 franchises in an excellent position to excel as a business.
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Mike Beamish ‏@sixbeamers 24m

#CFLPA and #CFL in blinking contest: Let's see who bats lashes first. Staredown de rigeur in labour-management negotiations.

Arash Madani ‏@ArashMadani 23m

This should be intellectual. #CFL RT @CFL_News: MT @TSNScianitti: #CFLPA has given their members the go ahead to speak on CBA talks publicly

Ten more days, boss. Ten more days. #CFL RT @rmaver6: So, does this mean we won't get fined for tweeting our thoughts now?

It begins. MT @efraser007: If the #CFL really wanted to negotiate, why did it take 3 months and a mediator to allow PA access to financials?

If @canadiancommish is now negotiating in public, maybe he can answer why it took 3 months and a mediator for PA to access financials. #CFL

It continue. #CFL MT @JeffHecht24: 9% cap increase year 1 followed by barely over 1% increases after? Did inflation stop and no one tell me?

Memo to the CFLPA: Don't send a 12:15 pm advisory to media for a 2 pm press conference at the airport. Just basic, PR 101, kids. Sigh...
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Shi Zi Mi
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Mike Beamish ‏@sixbeamers 20m

Cohon's carrot: #CFL offers signing bonus ($3,000 for vets, $1,000 for rookies) to ratify league's latest CBA proposal on or before June 2.

CFLPA ‏@CFLPA 1h

@cfl broke off negotiations this morning. It was clear that they do not want to negotiate. #WeAreTheGame #WeAreUnited

News1130 Sports ‏@News1130Sports 15m

#BCLions defensive back Dante Marsh just told me that he will stand with his brothers till this new CBA gets done.

Marsh can't believe CFL is in this position. Marsh says salary cap doesn't need to get to 30 million but it needs to go up.

Marsh says you have to provide for your family and look out for yourself but admits he has had great salary last 8-9 in CFL.

Marsh upset he's not a player rep, says he would really help this process. Won't get a more honest interview than Marsh.

Paul McCallum ‏@PaulMcCallum4 12m

This is simple math and the #CFL isn't giving all the facts! This is just bad for the whole league to do this in the media!!!

CFLPA ‏@CFLPA 4m

We will be making a statement in respect to current CBA Negotiations today 2 PM Weston Bristol Place Toronto Airport Hotel 950 Dixon Rd
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Arash Madani ‏@ArashMadani 4m

Amazing part of the Mark Cohon press release/letter to the players: It's dated for tomorrow. The #CFL had clearly planned this out.

This was an orchestrated rollout by the #CFL. There was never an intention to come to a deal today. The CFLPA got played, and ambushed.

As negotiations, and tactics, go, the #CFL owned the CFLPA today. Union was blindsided and ill equipped to handle. PA exec speaks at 2 pm ET
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Farhan Lalji ‏@FarhanLaljiTSN 15m

Players deserve more than what the #CFL is offering, but Im not sure rev sharing is the answer. Also Bob Young needs to get involved in negs

The CFL keeps having to go back to owners for approval on everything. Get them involved now. Bob Young is most reasonable.

Arash Madani ‏@ArashMadani 13m

The CFLPA must ask its membership to not comment. Players are pissed. We get that. But it's going to come off horribly if they pop off. #CFL

CFL News ‏@CFL_News May 20

Players getting shafted - via @winnipegnews http://shar.es/VfTFf via @DougBrown97 #CFL #CFLPA

Scott Mitchell ‏@SUNMitchell 6m

The tone has been the same through three months of "negotiations." This isn't surprising at all, which is unfortunate. #CFL
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The_Pauser
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Oh boy...

A CFL work stoppage is absolutely unacceptable and inexcusable. I don't get why they can't agree to a link of player salaries to revenue? I get that teams have additional costs, but one would think that this would be budgeted for when coming up with what percentage works for the league?
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Shi Zi Mi
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News1130 Sports ‏@News1130Sports 8m

Teams in CFL today were told business as usual. Easier said than done. No plans to cancel #BCLions rookie camp yet.

Arash Madani ‏@ArashMadani 7m

From a source close to CFLPA members: "Reality setting in already. Players have already started asking agents etc for loans..." #CFL

Arash Madani ‏@ArashMadani 3m

Again, remember #CFL players likely won't strike until those with 'report and pass' bonuses pass physicals (day 1 of camp) and cash cheques.
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Since Mark Cohon wrote to me and other fans outlining the league's offer, I sent him this personal reply:
Dear Mr. Cohon,
With respect, I was disappointed in your email today and in the league's bargaining position. As a fan, I have seen owners, players and fans make sacrifices for decades to support this league. I accept that these struggles continue for owners in many markets but I see no real attempt to share the league's increased television revenue with the players. I would hate to see training camp and games threatened due to a bargaining stalemate. You owe players and fans much more than you have offered.
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Much is made of the new TV deal which is not insignificant in and of itself. While it's easy to advocate turning half of it over to the players in the form of a cap increase I don't think it's that simplistic. The CFL may be enjoying the most stable conditions perhaps ever and is seeing very good growth. However it would be foolish for them to treat the change in fortunes since the 90s with anything other than cautious optimism. They still have to tread cautiously and continue building on the momentum gained. Based on the annual reports readily available from the community owned teams it takes in excess of $20 million in revenues to break even these days in the CFL. The new contract means TV revenues will more than double for each team. However in the grand scheme things the increase in TV revenues equates to only about a 11-13% in overall revenues.

One thing that peeves me about the players' stance is the "we sacrificed so much when things were bad" attitude. I won't deny that players did give back taking pay cuts etc. But it shouldn't be forgotten that during the dark days the owners bore all the financial risk involved with operating a CFL franchise. Players may not have been paid all that well but at that time a player on a $30K contract back then stood a far greater chance of walking away from the season with money in his jeans than most, if not all of the owners.
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