NEWSLETTER
NFLPA Executive Director Lloyd Howell has been at the forefront of discussions surrounding player compensation and benefits in the NFL since being named the union’s executive director eight months ago. In the annual State of the Union address in Las Vegas yesterday, Howell revealed that he has approached NFL owners with an intriguing idea: granting players equity in the league itself.
This proposal comes less than a year after the league implemented a policy prohibiting teams from issuing shares to employees outside of owners’ families.
NFLPA Director Proposes League Equity for Players
“I believe some things are inevitable, and I believe when you’re talking about a thriving enterprise, and you want that to continue and you want that to expand, cash is one thing, and equity is another,” Howell articulated. He sees the potential benefits of providing players with both financial compensation and ownership stakes in the league they contribute to.
However, Howell is well aware that such a proposal would spark extensive discussions and raise numerous questions. Implementing such a plan would require the establishment of a new entity or structure at the league level, allowing players to actively participate in the ownership process.
“This would likely be a long conversation,” Howell acknowledged, emphasizing the complexity of the issue. “There are many unanswered questions that need to be addressed before moving forward with this idea.”
The genesis of this debate can be traced back to reports surrounding former USC quarterback Caleb Williams, a highly touted prospect expected to be selected near the top of the upcoming NFL Draft. Williams has been rumored to be seeking equity as part of his contract negotiations, signaling a shift in player expectations, particularly in the current era of Name, Image, and Likeness (NIL).
“Players coming out of college are thinking differently about compensation,” Howell remarked, highlighting the changing landscape of athlete endorsements and compensation deals. “They are better informed about their role in building value, and they are exploring various avenues to maximize their earning potential.”
In addition to financial considerations, Howell underscored the importance of exploring alternative compensation structures that are prevalent in other industries. “Economics are going to be increasingly part of the mix,” he stated. “Now we’re in the era where we should also take advantage of other vehicles that are common practices across different industries.”
Howell cited examples from the world of professional golf, where players have opted to leave established tours like the PGA Tour in favor of new ventures offering better pay and incentives. This trend highlights a broader shift in athlete compensation expectations and the growing influence of individual athletes in shaping their careers.
Moreover, Howell suggested that offering players equity in the league could serve as a powerful incentive to align their interests with broader league objectives, such as international expansion. “If you want your workforce to be incentivized to continue to grow and expand the game globally, equity could be a vehicle that needs to be explored,” he proposed.
While the idea of granting players equity in the NFL is still in its infancy, Howell’s proposal has sparked considerable interest and debate among stakeholders within the league. The prospect of players becoming stakeholders in the very league they compete in represents a significant departure from traditional compensation models but could potentially reshape the dynamics of player-owner relations and usher in a new era of collaboration and partnership.
As discussions continue and the NFL grapples with the complexities of implementing such a groundbreaking proposal, one thing remains clear: the landscape of player compensation in professional sports is evolving rapidly, and innovative ideas like Howell’s are likely to play a pivotal role in shaping the future of the industry.
