For Upshaw, running union a labor of love
By PAUL DOMOWITCH
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WITH THE CLOCK ticking on his final days as NFL commissioner, Paul Tagliabue flew to Dusseldorf, Germany, in late May to take in the NFL Europe championship game between Amsterdam and Frankfurt. Sitting next to him on the 8-hour flight was a frequent traveling companion, NFL Players Association executive director Gene Upshaw.
"This was going to be his last one, so I wanted to go with him," Upshaw says during a recent interview with the Daily News at the union's Washington, D.C., headquarters.
NFL Europe still is in business today mainly because of Tagliabue and Upshaw. It's a money loser that most of the league's owners have long wanted to euthanize. But together, the commissioner and the union chief managed to convince them that it provides benefits to the NFL that can't be measured strictly in dollars and cents.
"It's the only other place you can play football when you're not playing here," Upshaw says. "It's the only place you can train officials. It's the only place you can send coaches and players [to get experience]. It's the only place you can have players that might want to be TV analysts get some experience.
"It gives you a chance to develop your talent both on and off the field. We look at it from the broad perspective, not just how much money you're going to make from it."
That kind of thinking illustrates why Upshaw's tenure, in the minds of most, has been so successful since he took over in 1983. And he's more than happy to confront those who criticize him, wondering aloud whether the source of their discontent is tinged with racism.
It's rare for a union boss and a company CEO to be on the same page about anything. The relationship between Upshaw and Tagliabue is unlike any you'll see in labor, in or out of professional sports. They are good friends who consider each other partners in a $6 billion-a-year business rather than fist-shaking, table-pounding adversaries.
Many hard-core labor types think Upshaw's relationship with Tagliabue is unseemly. They think it's impossible to represent your rank and file competently if you're close buds with management. They view Upshaw as a puppet and his union as the weakest in professional sports, even though the league's salary cap has nearly tripled in the last 12 years and the NFL's average annual salary has skyrocketed from $120,000 to $1.4 million in the more than 2 decades the Hall of Fame offensive lineman has run it.
"Paul and I have had discussions about how people perceive us," Upshaw says. "We have a relationship where we can just sit down and talk. Without even talking about business. We can talk about the history [of the game]. About what he's been through, what I've been through. All of those things are why we've had success...
"Probably the most important thing Paul has done is kept us out of the courtroom. He knew and I knew that if we stayed out of the courtroom and used the assets, which is the players, we could grow the game in a way that is unbelievable. And that's what's happened."
The courtroom is where the NFL was in 1989 when Tagliabue succeeded Pete Rozelle as commissioner. The league and union were embroiled in a bloody 6-year legal battle over free agency. Before that were bitter strikes in 1982 and '87.
Shortly after Tagliabue took over, Upshaw made the boldest move of his career, one that ultimately would change the face of the NFL. After a federal appeals court ruled that antitrust laws could not apply to the league because the NFLPA was a labor union, he decertified his union. With the NFLPA no longer a collective bargaining unit, the league was stripped of its antitrust protection, which ultimately led to a 1993 settlement that gave the players true free agency, along with a salary cap.
Since then, the players and owners have lived in relative peace and harmony, which has helped the league prosper and make lots and lots of money for both sides.
"When Paul took over, one of the first things he did was call me and said, 'Let's get together for dinner.' We met at a little [Washington D.C.] restaurant up on Columbia Road. From that point on, that's been the difference.
"We have agreed on a lot of things and we have disagreed on a lot of things. But it's nobody else's business. It doesn't advance his cause or my cause to have the Washington Post or the New York Times or the Philadelphia Daily News making a headline out of it, when the real issue is how do we solve the problem, rather than become the problem.
"It's never been about either one of us trying to one-up the other. It's always been, what can we do to make our product better and grow it. If people don't understand that, that's their problem, not ours."
Upshaw said his close relationship with Tagliabue is the main reason the owners and players got a new labor extension done in March. Upshaw and the union went into the negotiations wanting two things: a change in the salary-cap formula to factor in previously unshared revenue such as luxury-box income, concessions, parking and local sponsorship agreements, and a revenue-sharing agreement by the owners to assist teams not making as much money as others.
The owners eventually agreed to the change in the cap formula. But the revenue-sharing plan was another matter. The league's higher-revenue teams, including the Eagles, weren't eager to turn over some of their hard-earned money to other clubs. They also didn't understand why this was any of Upshaw's business in the first place. As long as his players were getting their cut of the league's total revenues, why on earth did he care if there was a growing gap between the league's rich and not as rich.
"Gene made it clear he didn't want a deal without enhanced revenue-sharing," said Harold Henderson, the league's executive vice president of labor relations since 1991. "We said over and over to him, 'It's not your issue. Why are you so hung up on that?' Some of the owners to the bitter end were still saying, 'I don't understand why he cares.' "
Upshaw cared, because he felt the NFL slowly but surely was heading down the same path of disparity as major league baseball, in which you have teams like the Florida Marlins with a $14.9 million payroll and teams like the Yankees spending about $200 million on players. That kind of out-of-whack situation apparently doesn't bother baseball's union people. But it bothers Upshaw.
"It doesn't do any good to have half the teams doing well and half the teams not doing well," Upshaw said. "The more closely you get to the baseball model, the harder it is to fix, because as the revenues get bigger and bigger and bigger, nobody wants to fix it.
"The argument [the owners] kept making was it's none of our business. That the union shouldn't be worried about revenue-sharing. That it's an internal matter for the owners. Well, it is. Except we have a salary cap in our league. When you have a salary cap, it changes all that. It's not just their business, it's our business, too."
With the March deadline for a labor extension looming, the owners were inclined to call Upshaw's bluff. But Tagliabue convinced the owners that Upshaw was very serious. On March 8, less than a half-hour before the deadline, the owners emerged from 2 days of meetings at a Dallas hotel with a revenue-sharing plan. The vote was 30-2.
"I'm telling you, if Paul and I didn't have the kind of relationship we have, we wouldn't have an extension right now," says Upshaw, who was on a plane to Hawaii for the NFLPA's annual convention when the deal passed. "I can tell you that with absolute certainty. Because I had walked away. I was done [negotiating]. Paul knew that. He had to convince his group that I was serious about it, and he did."
The CBA extension, which runs through the 2011 season, guarantees the players 59.5 percent of the league's total football revenue over the next 4 years and 60 percent in the final 2 years of the deal. And the revenue-sharing plan will allow teams with older stadiums to remain competitive.
"We have another 10 stadiums we still need to build," says Upshaw, whose union is the only one in professional sports that has invested money in the construction of new venues. "Until we can get that done, those teams aren't going to grow. Minnesota, Oakland, San Francisco, San Diego... that group at the bottom [of the revenue scale] are all in old stadiums. I've been around long enough to remember when they opened all those stadiums, and we thought they were great. Now, they're a piece of crap and need to be replaced."
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