The NFL has a full slate of open issues centering around the absence of a collective bargaining agreement with its players, such as the lawsuit brought against the NFL by New York Jets running back Freeman McNeil. McNeil, an 11 year veteran, is entangled in an anti-trust suit with the league and is scheduled to be heard on June 15, 1992. There are many issues in the area of licensing as well. Accounting for contingencies is governed by SAS 5. As a result of this pronouncement accounting for uncertainties will always be subject to significant judgment.
Most sports franchises are independent organizations operating within their league.
Not only will franchisees view the underlying issues necessary to do the accounting differently, but each will likely differ with other members of the league as to what is probable and can be reasonably estimated. With different year ends, franchisees in the same league can be forced to make accounting decisions at different points in time, causing further lack of uniformity. To appropriately prepare financial statements, industry issues and uncertainties of the day must be understood. Those who are to rely on the financial statements must obtain an understanding as to how such issues were handled to get the true picture of financial position and results of operations.