The Skinny on the Bills

[Bill Brasky]

The link has been posted, but I thought this might be interesting for those that don't know or haven't read it yet.........

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Buffalo is among the top football cities in America. But a dearth of big corporate sponsors has made it difficult for the small-market Bills to generate the sponsorship and premium seating revenues richer football teams rake in. To help keep the team competitive, Erie County granted the team significant improvements to its stadium and lease. The Bills can pick up and move to another city if owner Ralph Wilson pays the $20 million escape fee. But things would have to get really bad financially for the Bills to leave this football-fanatic city.

The Buffalo Bills are owned by Ralph Wilson Jr, who bought them in 1959 for $25,000.


Based on Revenues from 2003:

Team Value: $637 mil (#24) (based on current stadium deal and any debt incurred)

1 Yr Value Change: 13% (#23)

Ann Value Change: 25% (current value compared with transaction price)

Debt Value: 11% (#6) (includes stadium debt)

Revenue: $152 Million (#24)

Operating Income: $28.5 Million (#13) (before interest, taxes, depreciation, ammortiztion)

Player Expenses: $88 Million (including benefits and bonuses)

Gate Receipts: $32 Million (including club seats)

Major corporate sponsors are Choice One Communications, Xerox , PepsiCo , Verizon Wireless, M&T Bank.

In 1998, the Buffalo Bills were valued at $252 Million

As of 2004, the Buffalo Bills were valued at $637 Million

Between 2002 and 2003, the Bills value increased by $106 Million

http://www.forbes.com

[Mr. Pink]

Re: The Skinny on the Bills

A little more updated Freeman, I have posted this before, but since you made a new thread, I'll post it here also.

Team Value¹ $ 708 mil (#25)

1-Yr Value Chg. 11 Ann. Value Chg.2 25% Debt/Value3 10% Revenue4 $173 mil Operating Income5 $36.1 mil Player Expenses6 $95 mil Gate Receipts7 $35 mil Revenues and operating income are for 2004 season. 1Value of team based on current stadium deal (unless new stadium is pending) without deduction for debt (other than stadium debt). 2Current team value compared with latest transaction price. 3Includes stadium debt. 4Net of stadium revenues used for debt payments. 5Earnings before interest, taxes, depreciation and amortization. 6Includes benefits and bonuses. 7Includes club seats. 8Compares the number of wins per player payroll relative to the rest of the NFL. Postseason wins count twice as much as regular season wins. A score of 120 means that the team achieved 20% more victories per dollar of payroll compared with the league average. NA: Not applicable. Team Logos Courtesy NFL. http://www.forbes.com

[Bill Brasky]

Re: The Skinny on the Bills

I had posted that earlier but could not find the updated one you posted... good job.

I think it's interesting to note......

Between 2002 and 2003, a span of 1 year, the team's value jumped by a staggering $102 Million.

But from 2003 to 2006, a span of 3 years, only by $71 Million

[LtBillsFan66]

Re: The Skinny on the Bills

I had posted that earlier but could not find the updated one you posted... good job.

I think it's interesting to note......

Between 2002 and 2003, a span of 1 year, the team's value jumped by a staggering $102 Million.

But from 2003 to 2006, a span of 3 years, only by $71 Million

How's that compare to other teams?

[Bill Brasky]

Re: The Skinny on the Bills

It will take a few minutes but I'll go compare against a couple teams...

any specific teams you want to see?

[Mr. Pink]

Re: The Skinny on the Bills

That's just 2004 info....I can't find 2005 anywhere online at this time...Maybe all the figures haven't been published yet, seeing that season just concluded 3 months ago though.

So it went up 102 million in between 02-03 then 73 million between 03-04....

Now, if the franchise today is only worth say 758 million, a 50 million dollar jump, maybe there is cause for concern of a trend. But til the 05 numbers are published, we can't make any "real" conclusions there.

[Mr. Pink]

Re: The Skinny on the Bills

Football team values rose an average of 12% during the past year to $819 million. There's much more growth ahead this decade. The new national TV deals that begin in 2006 will pay $3.7 billion annually, 53% more than the current pacts. Also, the Cardinals, Cowboys and Giants will have much richer stadium deals.

Also off of Forbes. That means one thing...franchise values for everyone will go up at a big rate in 06.

I know that didn't answer the question at hand, but it shows that this team realistically after this season could be worth 850+ million.

[LtBillsFan66]

Re: The Skinny on the Bills

It will take a few minutes but I'll go compare against a couple teams...

any specific teams you want to see?

Dallas, New England, Washington, Philly.

[Mr. Pink]

Re: The Skinny on the Bills

Skins went up 100.5 million 02-03 then 200 million between 03-04
Cowboys 70 million between 02-03 then 168 million between 03-04
Pats 105 million between 02-03 then 139 million between 03-04
Eagles 216 million between 02-03 then 119 million between 03-04

[Bill Brasky]

Re: The Skinny on the Bills

Value of the Redskins, between 2002 and 2003, increased $107 Million
their greatest increase was between 1998 and 1999, by $204 Million
between 1999 and 2000, it jumped another $134 Million

Value of the Cowboys, between 2002 and 2003, increased $67 Million
their greatest increase was between 1998 and 1999, by $250 Million

Value of New England, between 2002 and 2003, increased $185 Million
their greatest increase was between 1998 and 1999, by $208 Million

Value of the Eagles jumped by more than 200 million twice within that six year span... $206 Million increase between 98 and 99... $212 Million between 2001 and 2003

[Mr. Pink]

Re: The Skinny on the Bills

http://www.forbes.com/2005/08/31/foo...l.html?index=1

charts for every team from 98-05

[feelthepain]

Re: The Skinny on the Bills

Operating Income: $28.5 Million (#13) (before interest, taxes, depreciation, ammortiztion)

Player Expenses: $88 Million (including benefits and bonuses)

Gate Receipts: $32 Million (including club seats)!!!!!!!!!!!!

I know this doesn't include revenue from the sponsors, but that's a difference of.....-84.5 Million dollars. I would be pissed if I owned the team too.

[ICE74129]

Re: The Skinny on the Bills

Here is what you guys are missing. Buffalo Bills value to the top 1/3 owners = ZERO.


No one gives a rats arse if they are in BUFFALO, when will you get that? Ralph is now on the brink of being out of the bottom 1/3 of the league. That = no revenue sharing.

[Mr. Pink]

Re: The Skinny on the Bills

Operating Income is the amount of money RALPH made on the team before taxes, amoritization and depreciation. Not an expense.

[Dont drink the water]

Re: The Skinny on the Bills

I think it's interesting to note......

Between 2002 and 2003, a span of 1 year, the team's value jumped by a staggering $102 Million.

But from 2003 to 2006, a span of 3 years, only by $71 Million

Value is not increasing as fast because there are not more expansion teams coming hence no more shares of expansion fee.