Bills Battle for Profits...Part 2

[YardRat]

http://www.buffalonews.com/home/story/350163.html

A change of hands changes fortune

Profitability depends on team’s debt load


The Buffalo Bills are one of the National Football League’s most profitable teams, but that could change in a hurry if the team is sold.

Because Bills owner Ralph Wilson founded the team for a mere $25,000 back in 1959, he doesn’t have to worry about paying off a huge loan to finance the team’s purchase.

But whoever buys the Bills from Ralph Wilson or his estate will have that worry — and those loan payments could easily turn the franchise from one that makes a nice profit to one that roughly breaks even or worse.

And that could be the biggest hurdle to keeping the Bills in Buffalo once the team changes hands.

[Jan Reimers]

I still can't understand why Ralph doesn't leave the team to his wife, who could let Brandon and his guys run the operation. It would solve the estate tax problem, keep the appreciation ball rolling for his family, and allow the team to continue to be debt free - and profitable.

[Patrick76777]

I still can't understand why Ralph doesn't leave the team to his wife, who could let Brandon and his guys run the operation. It would solve the estate tax problem, keep the appreciation ball rolling for his family, and allow the team to continue to be debt free - and profitable.


I've always thought the same thing. She's in her 50's and she's a huge fan of the team.

[Jan Reimers]

I've always thought the same thing. She's in her 50's and she's a huge fan of the team.
Plus, I read an article in the Buffalo News about the Girls in Sports programs that she started and are held at the fieldhouse, where she said she would love to do more with the local community and to live in Buffalo.

[Historian]

Plus, I read an article in the Buffalo News about the Girls in Sports programs that she started and are held at the fieldhouse, where she said she would love to do more with the local community and to live in Buffalo.

I used to volunteer for the Women Understanding Football Clinic every fall.

That's how I got to meet Jeff Nixon.

He was instructing the women on D Line and pass rush....and I was his QB tackling dummy.

:up:

[Don't Panic]

“Our sole focus — our sole focus — is to keep this franchise financially sound in Western New York,” said Russ Brandon
I like to hear that, whether he means it 100% or not, at least he's saying it.

Ralph has made it clear that there will be a sale of the team when he dies... I'd like to see it stay in the family as well but it isn't in the cards apparently. I still think they need to look into what Green Bay has done and sell the team off as "shares of stock". The Galisanos of the area would have first crack so we can make sure someone doesn't come in and try to buy controlling share and take the team elsewhere, then the locals (they'd put a provision in that said you had to live in Erie, Niagara, Monroe, Genessee county, etc. or something like that), then, after we've established local majority ownership, open it up to anyone.

We've talked about this before... assuming the team sold for $800 million, you could make 4 million shares of stock available. That's $200 a share at the "IPO". Let the local managing partners buy their chunk, then the fans. I know I'd buy a share just for the claim of being part owner of the Bills. If the initial investment was $360 million (local business leaders), do you think there are a quarter million people living in WNY who would spend $200 to own part of the team? I do. They spend a lot more than that on average in the course of a single season. That gets us over 50%. That means all decisions involving the team are being made by a majority that has a vested interest in the Greater Buffalo area. If we can get a better turnout than this, it simply means more local ownership. You could even have the Canadians get involved to guarantee their one preseason and one regular season game a year (which I'd be more than willing to do if it meant keeping us in Buffalo).

That leaves $390 million, or 1.95 million shares (max.), to be bought up by anyone else. Considering the success of the league, there would be little problem in selling these off. Find me a consistent roi that can rival the NFL....

I know it is a lot more complicated than this, but the idea of parttial public ownership should be one that is fully heard when Ralph finally moves on to the nex phase of life.

[Jan Reimers]

I like to hear that, whether he means it 100% or not, at least he's saying it.

Ralph has made it clear that there will be a sale of the team when he dies... I'd like to see it stay in the family as well but it isn't in the cards apparently. I still think they need to look into what Green Bay has done and sell the team off as "shares of stock". The Galisanos of the area would have first crack so we can make sure someone doesn't come in and try to buy controlling share and take the team elsewhere, then the locals (they'd put a provision in that said you had to live in Erie, Niagara, Monroe, Genessee county, etc. or something like that), then, after we've established local majority ownership, open it up to anyone.

We've talked about this before... assuming the team sold for $800 million, you could make 4 million shares of stock available. That's $200 a share at the "IPO". Let the local managing partners buy their chunk, then the fans. I know I'd buy a share just for the claim of being part owner of the Bills. If the initial investment was $360 million (local business leaders), do you think there are a quarter million people living in WNY who would spend $200 to own part of the team? I do. They spend a lot more than that on average in the course of a single season. That gets us over 50%. That means all decisions involving the team are being made by a majority that has a vested interest in the Greater Buffalo area. If we can get a better turnout than this, it simply means more local ownership. You could even have the Canadians get involved to guarantee their one preseason and one regular season game a year (which I'd be more than willing to do if it meant keeping us in Buffalo).

That leaves $390 million, or 1.95 million shares (max.), to be bought up by anyone else. Considering the success of the league, there would be little problem in selling these off. Find me a consistent roi that can rival the NFL....

I know it is a lot more complicated than this, but the idea of parttial public ownership should be one that is fully heard when Ralph finally moves on to the nex phase of life.
Current NFL bylaws, as I understand, prohibit public ownership of franchises. That's not to say that Congress, using its anti-trust exemption hammer, couldn't force an exemption for the Bills.

[Don't Panic]

Current NFL bylaws, as I understand, prohibit public ownership of franchises. That's not to say that Congress, using its anti-trust exemption hammer, couldn't force an exemption for the Bills.

They do? How did GB get around it? If the anti-trust route needs to be taken, then so be it. It seems we're pretty close to that after spygate anyway.

[ddaryl]

Greenbay is the reason for the NFL rule. They did it, and the NFL quickly nixed any future teasm form doing so soon afterwards.

[Jan Reimers]

They do? How did GB get around it? If the anti-trust route needs to be taken, then so be it. It seems we're pretty close to that after spygate anyway.
I believe the bylaws were changed sometime after GB went public.

[Dozerdog]

The Green Bay Football Corp sold team stock starting in 1920 through 1950. There are 1900 shareowners. No one owns more than 200 shares and there is zero profit made on the shares- all is plowed back into the team and the facilities.

The NFL (and all other major pro sports leagues) have since discontinued this practice. Some sports teams have sold novelty stock (The Celtics for one a few years ago) but for the most part it is worthless.

[Dozerdog]

The last thing you want is a sports league with 250,000 owners. Talk about a big mess.

[Dr. Lecter]

The last thing you want is a sports league with 250,000 owners. Talk about a big mess.

We would have to call each other cheap,old and senile and criticize ourselves without justification.

[Dr. Lecter]

I still can't understand why Ralph doesn't leave the team to his wife, who could let Brandon and his guys run the operation. It would solve the estate tax problem, keep the appreciation ball rolling for his family, and allow the team to continue to be debt free - and profitable.

Perhaps she likes being an owner's wife, but is not interested in ownership itself?

I don't know, but that is certainly possible.

[Don't Panic]

Green Bay had the vision to do it right, and after all of these years, no matter how smal their market gets, they're not going anywhere. It's unfortunate if we can't work out some 'modern day' version of their blueprint.

[Dozerdog]

Perhaps she likes being an owner's wife, but is not interested in ownership itself?

I don't know, but that is certainly possible.

I like football a lot. Give me a football team or half a billion dollars?

I'll take the half billion

[Jan Reimers]

Perhaps she likes being an owner's wife, but is not interested in ownership itself?

I don't know, but that is certainly possible.
You may be right, but if she had good people running the team, I don't see ownership being that big a burden. Plus, she has expressed an interest in living in Buffalo and being more involved in the community.

I think Ralph has just said, " You're not inheriting the team. I'm selling it to the highest bidder."

[justasportsfan]

She's in her 50's and she's a huge fan of the team.
If Mrs Wilson is in her 50's she sure didn't age well .

[Dozerdog]

Green Bay had the vision to do it right, and after all of these years, no matter how smal their market gets, they're not going anywhere. It's unfortunate if we can't work out some 'modern day' version of their blueprint.

Unfortunately, the "vision" is not an option

[cba fan]

I like football a lot. Give me a football team or half a billion dollars?

I'll take the half billion
NFL = money.

Give me a football team or half a billion dollars?

You take the team. They are worth approx 1 billion and climbing. You can then sell, or hold and watch the value grow while at the same time living off the 30 to 50 million dollar yearly profit.

[Jan Reimers]

If Mrs Wilson is in her 50's she sure didn't age well .
I think she's mid to late 60's at this point.

[Jan Reimers]

I'll take that back. She's only 62 or 63.