4 Things the NFL Must Do Now to Reshine ‘The Shield’

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After a week of disturbing revelations surrounding the National Football League’s handling of the Ray Rice domestic violence affair, the NFL is playing from behind to quash a firestorm of controversy.

NFL185While questions of what Commissioner Roger Goodell knew and when he knew it potentially could get him sacked, the growing outcry could lose the NFL not just fan and sponsor support, but the league’s crown jewel: its antitrust exemption.

The NFL’s crisis might have started with former Baltimore Ravens running back Ray Rice’s domestic violence arrest and Goodell’s initial two-game suspension, but the story has gained a life of its own this week. That includes news that former FBI Director Robert Mueller will conduct an independent investigation of NFL’s handling of the matter.

When he stepped into the job as NFL Commissioner in 2006, Roger Goodell saw his mission as “protecting the shield” — obviously not the logo, but the safety and integrity of the game of pro football. That goal has been muffed big-time of late, though, and the NFL faces backlash great enough to cost the NFL dearly … including the antitrust exemption that has saved the NFL untold millions of dollars in taxes over the years.

Back in 1961, when pro football was the red-headed stepchild of professional sports broadcasting, Congress enacted the Sports Broadcasting Act, allowing NFL teams to bundle their TV rights. Such an arrangement would normally violate antitrust law, but lawmakers believed forcing networks to broadcast the games of less popular teams would be fairer to teams in smaller TV markets with fewer national fans. That logic made sense then, but the argument is wearing thin now. The NFL’s 32 teams will split revenue of more than $9 billion this year — more than Fortune 500 corporation Facebook (FB).

Which is why the league needs to listen closely to the rising outcry in Congress. Sen. Richard Blumenthal (D-Conn.) this week said “ignorance is no excuse”; Sen. Dean Heller (R-Nev.) told the NFL in a letter “you effectively condoned the action of the perpetrator himself.”

On Wednesday, 12 Democrats on the House Judiciary Committee — the panel with oversight of antitrust issues — wrote a letter to Goodell demanding transparency from the NFL, followed by a bipartisan group of 16 female U.S. senators who wrote the NFL demanding a “zero-tolerance” policy for domestic violence.

Last year, Sen. Tom Coburn (R-Okla.) introduced a bill to end that exemption for the NFL, pointing out that it’s a hard sell to say a business that makes nearly $10 billion a year is a “nonprofit” trade association. Count on that to resurface in some form.

Goodell hasn’t been thrown under the bus yet because he’s been very good for the business of football during his tenure; since replacing Paul Tagliabue in 2006, Goodell has raised the profile of pro football internationally and fattened owners’ collective wallets.

Still, this is his second major crisis of confidence for the Commissioner in as many years (remember the New Orleans Saints and “Bountygate”?), and the clock is winding down on the integrity of “the shield” and the NFL’s antitrust exemption.

For the sake of the game, its legacy, and its players and fans, the league needs to dial up four quick plays now:

  • Place Goodell on Temporary Leave. Public companies get torched over corporate PR fumbles — Hewlett-Packard (HPQ) CEO Mark Hurd lost his job over a relationship with a female contractor; Mozilla CEO Brendan Eich resigned after his 2008 donation to defeat same-sex marriage in California came to light. NFL owners can show their support for an open investigative process by sitting Goodell until the Mueller investigation is finished.
  • Stop Making Excuses. League personnel and NFL owners simply need to stop talking now because every explanation sounds like an excuse. When you say law enforcement wouldn’t release the tape (it did) or the details of the altercation between Rice and his now-wife Janay were “ambiguous,” a PR intern could pinpoint the potential damage to public trust. NFL Security is not comprised of Keystone Cops and Barney Fifes — they have strong law enforcement credentials. Director of Strategic Security Jeff Miller is the former commissioner of the Pennsylvania State Police, team security personnel are some of the most qualified professionals in the business — and that’s why claims of ignorance are falling on deaf ears.
  • Review (and Adjust) This Season’s Player Suspensions. Ray Rice initially was suspended two games for the domestic violence incident that kicked off this firestorm, but two other players with domestic violence arrests will suit up for their teams on Sunday. Carolina Panthers’ Greg Hardy is appealing a conviction for assaulting his former girlfriend, and the San Francisco 49ers’ Ray McDonald was arrested on suspicion of felony domestic violence on Aug. 31 — days after the NFL’s new tougher domestic violence policy was released. By comparison, Goodell suspended Cleveland Browns’ Josh Gordon for the year — and the Denver Broncos’ Wes Welker for four games — over violations of the league’s drug policies. The stark contrast between penalties for violations that impact game performance and other “off the field issues” looks wrongheaded at best. However, it looks like the NFL is actually aware of this discrepancy and is working to address it, possibly as soon as today.
  • Be Transparent With Lawmakers and the Public. For the good of the NFL, league personnel and team owners need to cooperate fully not only with Former FBI Director Robert Mueller’s independent investigation, but with any and all inquiries from Congress or any other such body that may look into this matter — such as the Justice Department and state attorneys general.

Bottom Line

The NFL didn’t just fumble the Ray Rice situation; it has dropped the ball on a wide range of issues on Goodell’s watch from player discipline and concussions to the lack of transparency over how the NFL investigates and polices itself.

But in business, as in football, it’s not how you start that matters, it’s how you finish. NFL owners and executives did not start fast in this most recent crisis — but that doesn’t mean they can’t finish strong.

For the sake of the sport Vince Lombardi loved and the Super Bowl trophy that bears his name, it’s time for the NFL to man up.

As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/09/4-things-nfl-must-now-shine-shield/.

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