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It will take more than a historic recession and a player lockout to sack the business of football.
Very interesing quote here:
The biggest winners are high-revenue team owners who will see their revenue sharing payments to their low-revenue rivals drop. In part this explains why the value of the top 10 teams rose 4% on average.
I'm not a fianacial whiz, but I read that is, under the new CBA, the top 10 revenues will now be paying the bottom 10 teams LESS than before?
If how I'm reading that is correct, I don't see how the new CBA is nearly as good for lower revenue teams as was hyped when the new CBA was agreed upon.
There is a growing divide between the rich and poor NFL franchises (poor being a relative term as all 32 teams rank among the 50 most valuable sports teams in the world). Supplemental revenue sharing payments to low revenue teams under the old CBA were expected to rise to $220 million with high rolling teams like the Cowboys, Washington Redskins (No. 2, worth $1.55 billion) and New England Patriots (No. 3, worth $1.4 billion) supplying much of the welfare and on the hook for more than $10 million apiece.
Under the new CBA, the amount any big market teams will have to kick into the system is capped at $3.5 million. Low revenue teams will receive only $50 million to $100 million collectively in the early years of the deal according to NFL estimates. Leaguewide revenues are expected to increase to the point where supplemental revenue sharing almost disappears by the end of the new 10-year CBA.
The new CBA hurts teams at the bottom of the financial pyramid as well because beginning in 2013, teams must spend 89% of the salary cap in cash or be subject to penalties. Keeping a lid on player costs allowed the Tampa Bay Buccaneers to be football’s fourth most profitable teams over the past five years. The Bucs’ player costs were $35 million lower than any other team during that time and $150 million less than the Cowboys. The Chiefs, Bills and Bengals have also kept spending in check fattening up the bottom line. That is not an option anymore. While the value of the top teams is up, the bottom 10 stayed flat on average.
Mark my words...if the Bills go to auction, if there are competing parties, they sell for over a billion dollars.
PTR
10 Commandments of the D
1. Never stop Rocking.
2. Legalize all drugs.
3. Quit your day job.
4. All Religion should be taxed.
5. Cut down on carbohydrates.
6. F**k her gently.
7. Never believe what people tell you after a show.
8. Always take a spoon full of Metamucil after a heavy day of eating.
9. Get at least 9 hours of sleep a day.
10. Eatin' ain't cheatin'.
Like Malcom Gladwell wrote about in his article about owning a sport franchise. The psychic value by the potential owner increases the value of the team. So I am sure the team would sell well above the 792 Forbes valuation.
Great job buddy, you built an immensely profitable and valuable business.
Kudos. But don't get too greedy, the US dollar is in freefall, you may want to sell now before it drops much further.
Enjoy your remaining years on a tropical island far, far away from Buffalo with lovely island girls bringing you your ensure on ice while you lounge at water's edge.
Don't worry about us lowly fans of your former team, we'll somehow shuffle onwards as Golisano, or Kelly, or Cuban should be able to shoulder your current burden.
Great job buddy, you built an immensely profitable and valuable business.
Kudos. But don't get too greedy, the US dollar is in freefall, you may want to sell now before it drops much further.
Enjoy your remaining years on a tropical island far, far away from Buffalo with lovely island girls bringing you your ensure on ice while you lounge at water's edge.
Don't worry about us lowly fans of your former team, we'll somehow shuffle onwards as Golisano, or Kelly, or Cuban should be able to shoulder your current burden.
Winning to them is profits, not wins.
Sadly were seeing a team sinking farther into obscurity and unable to make a big move toward growth again. They can't get the necessary wins without the necessary talent and they won't spend to get there because it's too much of a risk to the profits and business as a whole.
A new owner may revitalize the business and bring excitement and growth back to the Bills.
US dollar in free fall? the last couple weeks the dollar has strengthened on european worries and people continue to ploy money into treasuries.
i get the desire for ralph to sell, but when there is more volatility in general markets and you can get $130MM in revenue with absolutely no effort, and continued lower expenses by trading any contract away or cutting them, ralph will continue to do best for his family by running the keystone cop operation that he does than taking cash and reinvesting it anywhere.
the nfl was on strike for 6 months and they still had tv deals paying them. find me an equity with those kind of payouts.
I'm not a fianacial whiz, but I read that is, under the new CBA, the top 10 revenues will now be paying the bottom 10 teams LESS than before?
If how I'm reading that is correct, I don't see how the new CBA is nearly as good for lower revenue teams as was hyped when the new CBA was agreed upon.
US dollar in free fall? the last couple weeks the dollar has strengthened on european worries and people continue to ploy money into treasuries....
I'm pretty sure Ralph's not a swing trader.
Gotta love the internet, only place an admittedly lame joke (mine) can be responded to as if it were you know...serious, thereby providing an equally lame reply. lol
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