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Sports December 10, 2008  RSS feed

NFL sheds jobs in wake of downturn in country's economy

ASSOCIATED PRESS

The NFL pays its players billions of dollars a year and fans pack its stadiums every week. But even the deeppocketed league is shedding jobs.

Commissioner Roger Goodell said Tuesday that the league is cutting more than 10 percent of its staff in response to the downturn in the nation's economy that could put a dent in ticket sales for next season.

Goodell announced the cuts in a memo to league employees. The NFL is eliminating about 150 of its staff of 1,100 in New York, NFL Films in New Jersey and television and Internet production facilities in Los Angeles.

"These are difficult and painful steps," he wrote in the memo. "But they are necessary in the current economic environment. I would like to be able to report that we are immune to the troubles around us, but we are not. Properly managed, I am confident the NFL will emerge stronger, more efficient and poised to pursue long-term growth opportunities."

The NFL long has been regarded as one of the most wealthiest pro sports leagues on the planet. In September, Forbes called the NFL "the richest game" and "the strongest sport in the world." The league has revenues of approximately $6.5 billion of which an estimated $4.5 billion goes to players.

But now it joins the NBA, NASCAR teams and the company that runs Major League Baseball's Internet division in announcing layoffs. The NHL hasn't laid off workers, though it is in a hiring freeze, a spokesman said Tuesday.

So far, NFL fans haven't noticed the cutbacks, which also include reduction in travel by some league staff, and such secondary costs as printing and minor events. The NFL announced last month that it was reducing the cost of playoff tickets by about 10 percent from last season.

"We're looking at everything with an eye to how we can be more efficient and reduce costs," league spokesman Greg Aiello said.

The cuts will take place over the next 60 days, running past the Super Bowl, which will be played Feb. 1 in Tampa. Employees who volunteer to leave will be offered what was termed "a voluntary separation program."

The layoffs are separate from the cuts in front-office and other personnel being made by the 32 individual teams.

Aiello said the NFL still plans to throw parties at the Super Bowl, elaborate events for which the game has long been known. However, local organizers say the companies that regularly host their own parties are watching expenses, scaling back plans and inviting fewer guests.