Economics of the NFL Referee Lockout
A financial expert says the NFL referee lockout is a matter of short term economics.
Notre Dame Finance Professor Richard Sheehan says NFL owners are basically risking a fraction of their $1.5 billion brand value to save about $3 million in additional referee costs. Sheehan says the referees have more bargaining power than players, since players have short careers and make a substantial amount of income. He says the owners have a part-time job that pays $150,000 a year, which is a good deal, but it also allows them to not to have to roll over because NFL owners wanted them to.
Sheehan says the shift of $150-250 million in bets from the outcome of the Monday Night Football game played a part in negotiations as well. He says gambling is a part of the game and bettors contribute a share of revenues to the NFL.