The $29 Million "Tip"

In July 2011, NFL Commissioner Roger Goodell and the rest of the league had the NFL Players Association on the ropes. Five years of careful planning by Goodell and NFL owners, combined with the unfortunate death of NFLPA Executive Director Gene Upshaw in 2008, had put the players in a tough spot. The players were going to have to take a cut in pay. They were going to have to hand over part of their share of football revenue to the owners. The question was down to two simple words. How much? In the end, Goodell was able to shift approximately $4.5 billion over a 10-year period from the players to the owners. Creating a deal that was not only lopsided, but historic in length. It was a shift of nearly 13 percent of all revenue from one side to the other, a cascade of cash. But Goodell and his men, such as NFL VPs Jeff Pash and Peter Ruocco, weren’t done yet. Not only was there a shift of money, the league put clamps on just about every way that players had to make money in the short-term. Rookie salaries were cut in half for top picks. Salaries for top players (known as the “franchise tag”) were kept almost completely in check, even as revenue for the league grew by 25 percent. This negotiation wasn’t just a victory for the owners, it was a rout. By 2012, the NFL made the lopsided nature of this victory known to the public when it rewarded Goodell for a job well done. A job thoroughly done. The NFL owners awarded Goodell a bonus that brought his total income to $29.49 million for 2011, nearly three times more than what he had ever made in any prior year. It was staggering. It was a $29 million tip, as it were.

In July 2011, NFL Commissioner Roger Goodell and the rest of the league had the NFL Players Association on the ropes. Five years of careful planning by Goodell and NFL owners, combined with the unfortunate death of NFLPA Executive Director Gene Upshaw in 2008, had put the players in a tough spot. The players were going to have to take a cut in pay. They were going to have to hand over part of their share of football revenue to the owners. The question was down to two simple words. How much? In the end, Goodell was able to shift approximately $4.5 billion over a 10-year period from the players to the owners. Creating a deal that was not only lopsided, but historic in length. It was a shift of nearly 13 percent of all revenue from one side to the other, a cascade of cash. But Goodell and his men, such as NFL VPs Jeff Pash and Peter Ruocco, weren’t done yet. Not only was there a shift of money, the league put clamps on just about every way that players had to make money in the short-term. Rookie salaries were cut in half for top picks. Salaries for top players (known as the “franchise tag”) were kept almost completely in check, even as revenue for the league grew by 25 percent. This negotiation wasn’t just a victory for the owners, it was a rout. By 2012, the NFL made the lopsided nature of this victory known to the public when it rewarded Goodell for a job well done. A job thoroughly done. The NFL owners awarded Goodell a bonus that brought his total income to $29.49 million for 2011, nearly three times more than what he had ever made in any prior year. It was staggering. It was a $29 million tip, as it were. In this book, former NFL defensive tackle Sean Gilbert takes an in-depth look at all the ways Goodell and the NFL put together one of the strongest Collective Bargaining Agreements that owners could possibly hope for. That included the simple act of getting so much for so little. Or, as one lawyer explained to Gilbert in the book, basically for nothing. Yes, nothing. One of the key items that owners gave up in order to get that $4.5 billion was something they were probably going to give up regardless. The $29 million ‘Tip’ is a quick-yet-comprehensive look at the 2011 deal and why Goodell was so richly rewarded, becoming the highest-paid executive in U.S. sports history. It is a must read for NFL players and fans who want to understand how the economics of the game really work. It’s also a fantastic read for anyone hoping to get into the sports business.

Sean Gilbert is a rare man. Not just because he played defensive tackle in the NFL for 11 years. Rather, he is one of the few who has ever taken on the NFL at its own game of leverage … and won. Gilbert was the No. 3 overall pick in the 1992 NFL Draft. He was named All-Rookie and was a Pro Bowler by his second season. After being traded to Washington and being offered a contract for far less than he thought he was worth, Gilbert did what few have done. He sat out the 1997 season. As a result, he got almost four times what he was offered ($46.5 million instead of only $13 million) a year later. More than a decade later, Gilbert has advised his nephew, Darrelle Revis, as Revis has become the highest-paid cornerback in the history of the NFL. That success has inspired Gilbert to study the habits and expertise of the NFL and the men who run it. In the process, he is making an important announcement in this book. It’s a move he hopes will change the future of thousands of his fellow NFL players. Gilbert has written The $29 million ‘Tip,’ an in-depth but plain-spoken look at the work of NFL Commissioner Roger Goodell. In 2011, Goodell master-minded the negotiations over the Collective Bargaining Agreement and, in the process, helped NFL owners extract $4.5 billion from players over a 10-year period. That’s not to mention the increase in value each team has had since the agreement went into effect. As a result, Goodell not only became the highest paid employee of the NFL in 2011 (he made more than any player), he is also believed to be the highest paid sports executive in the history of the United States. Between salary and bonus, Goodell earned $29.49 million in 2011. He has also been named the most powerful man in sports by Sports Illustrated in 2013. While many players might hold resentment over Goodell’s high pay and ability to get so much from the players, Gilbert takes a different approach to the success of Goodell and the NFL. Gilbert points out that players should learn from the league rather than get angry. Then again, taking a different approach is something Gilbert has long been willing to do. Gilbert is from a classic football background. He grew up in Aliquippa, Pennsylvania, a steel town roughly 30 miles northwest of Pittsburgh. His mother worked in the steel mills and Gilbert grew up playing for one of the most decorated high school programs in the football-rich state. He was named the USA Today High School Defensive Player of the Year as a senior and led Aliquippa High to a state title. At Pitt, Gilbert quickly became a dominant force. After sitting out his freshman season under the NCAA’s Prop 48 rule, Gilbert became an All American by his junior season in 1991. He had 99 tackles, including 21 for losses. That prompted Gilbert to turn pro early and become a top pick in the 1992 draft. In making the decision to turn pro, Gilbert went against the advice of his coach and athletic director. That was only the beginning of a long list of aggressive moves by Gilbert, a man who is not afraid to ruffle some egos in pursuit of what he thinks is fair.