Indiana News

Economics of the NFL Referee Lockout

9/27/2012

A financial expert says the NFL referee lockout is a matter of short term economics.

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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.

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