Fitch Actively Monitoring NFL's Collective Bargaining Agreement

NEW YORK--(Business Wire)--
Today, National Football League (NFL) clubs voted unanimously to
exercise the option to shorten their labor agreement by two years (so
that the term of the collective bargaining agreement (CBA) will extend
through only the 2010 season) and to continue to negotiate a new
agreement for the 2011 season and beyond. Fitch will monitor
developments between the NFL and National Football League Players
Association (NFLPA) as negotiations continue to reach a new CBA, and
the potential, if any, effects on the credit strength supporting the
NFL's 'A+' (senior unsecured) Fitch rating. Fitch notes that while a
number of points of contention by both sides will have to be
negotiated to meet an equitable new agreement, under the existing
agreement play will continue, and national television contracts, which
are a substantial portion of the total league revenues, are in place
through the next three seasons.

The NFL and the NFLPA have a current labor agreement which was
initially negotiated in 1993 and extended several times, most recently
in 2006. Under the CBA, the NFL and NFLPA had an option to shorten the
deal by one or two years.

Fitch notes that the 2008 and 2009 season will be played with a
salary cap and if there is no new agreement before the 2010 season,
the 2010 season will be played without a salary cap and under the
existing agreement rules that would restrict the free agency rights of
the players. The salary cap has historically been a key factor
incorporated in the NFL's credit rating given that it promotes both
competitive balance among franchises and cost certainty. Fitch has
often cited that a key to the long- term viability to a sports league
is the competition between its clubs. There's a potential risk in the
long run that without a salary cap the competitive balance of the NFL
could be jeopardized. To the extent that the competition among
franchises weakens as a result of large market teams and wealthy clubs
opting to spend more money on player salaries as compared to small
market teams and less wealthy clubs, there is the potential that the
league could lose its strong historical competitive nature and
furthermore, its appeal to fans. While there is the potential for a
work stoppage in the 2011 season, Fitch notes key incentives for both
the NFL and NFLPA to reach a new agreement, and the three-year window
which provides a level of flexibility to negotiate.

The 'A+' rating reflects the NFL's position as the most popular
professional sports league in the U.S. The NFL has a strong and highly
regarded economic model, which includes sizable multi-year television
contracts, significant revenue sharing among member clubs and a proven
track record of conservative financial policies. The rated senior
unsecured notes benefit from the NFL's first-in-line access to
league-managed revenues, adequate legal provisions and covenants, and
ample reserve levels. The NFL is a not-for-profit unincorporated
association of 32 member teams and was originally founded in 1920 with
18 franchises.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Chad Lewis, 212-908-0886
Andrew Abramczyk, 212-908-0596
Cherian George, 212-908-0519
or
Media Relations:
Cindy Stoller, 212-908-0526

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