2012-13 Lockout Discussion Part VIIII: "We're Close" "We're Not Close" Edition
View Single Post
12-07-2012, 10:37 AM
A guy with a bass
Join Date: Sep 2004
Location: Charlotte, NC
The players are employees, yes, but their role is much different than the employee of, say, an auto plant. In an auto plant, the employees are producing the product, which costs a certain amount to make. The car is then sold, the company makes a certain amount of gross profit. Out of that gross profit, the car company pays it's factory employees. It also pays it's salesmen, advertising team, plant operation, dealership operation, etc, etc out of this gross profit.
In a sports league, the product is the game and paying the players is more like paying for the cost of car parts in this analogy. The salary of the players is part of the initial cost of the product. The profit (or loss) the owners make beyond that is their gross profit, out of which they pay their training, coaching, scouting and executive staffs as well as any travel and team operation expenses. So yes, players are employees, but they mainly fulfill a different function in the industry than typical employees.
Paying 57% of your revenue for your product is not exorbitant. I've worked jobs in retail in which I saw P&L statements. The typical margin that was being made, strictly on the cost of buying the goods from the manufacturer, transporting it to the store and selling it, was around 40%.
My main point is that the players are not your typical employees that should be compared with everyday people. Not even the people in other worker's unions throughout the country. What the union should be compared with is a conglomerate of car parts manufacturers or a company who makes products that retail stores buy from and sell at a profit of their own.
View Public Profile
Find More Posts by Tawnos