FOOTBALL! WooHoooooo

Discussion in 'Irrigation' started by FIMCO-MEISTER, Sep 13, 2009.

  1. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,311

    The only thing the nfl shares is tv money.
     
  2. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Posts: 47,389

    NFL also has revenue sharing. Didn't you know that?
     
  3. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,311

    Unshared money

    The newer stadiums have large box seats which are leased to corporations. This money is not currently shared, which gives individual teams a big incentive to get a new stadium with fewer normal seats and more corporate seats.

    Some teams (read: Cowboys) are starting to make their own licensed products and refuse to share the money. They theory is that Jerry Jones is a brilliant marketer (who just happens to live next to half the country's oil wells) so why should he share his hard-earned money with a slacker like Art Rooney (who just happens to live next to a bunch of shut-down steel mills in a solidly blue-collar town). The box seat and license money is a subject of great debate at this instant, and is the big holdup in renewing the NFL labor contract: the owners cannot sign a labor contract until they know how much money they're taking in, and until the new revenue agreement is signed they don't know that.

    Finally, a well designed stadium can bring in other money for events like concerts, weddings, a pro shop, and the sale of $12 hot dogs. This money is not shared, again giving teams a huge incentive for a new stadium. The Packer's stadium is a model of efficiency, and does a league-leading job of extracting money from the local residents. If Green Bay were in the Spy / Defense / Government business like Washington, or the oil business like Dallas, the Packers would almost certainly lead the league in revenue. In fact Green Bay makes placemats, napkins and toilet paper, so the Packers are about #12 in the league in revenue.

    In 2005 teams will make about $110M - $140M per year in gross revenue, and the players get about $85M of that. The $85M number is the salary cap. This is an agreed upon percentage of total league revenue divided by 32. Each team may spend $85M on players, no more. Each team must spend at least 80% of the salary cap, it's not allowed to be a complete cheapskate. However, things are much more complicated than that simple statement. First, the TV contract has escalator clauses. This has nothing to do with shopping malls and elevators, it means the contract payments increase each year. In '06 the salary cap is likely to be over $100M, about a 20% increase. This means that the top contracts are continually going up in value, and a contract signed a couple years ago is suddenly looking pretty thin. Although the US as a whole has almost no inflation, the NFL lives in an artificial world with about a 10% inflation rate. The idea of salary indexing has not really happened in the NFL, with the result that you see people sign very competitive contracts and two or three years later comparable players are making twice as much. This promotes a lot of hard feelings and contract problems. Appendix 1 shows the historic salary cap.

    All 53 team players and the 8 players on the practice squad count towards the salary cap. A team may not exceed the salary cap. If a team does exceed the cap, the NFL can waive players from the team, starting with those earning the lowest salaries, until the team's payroll has fallen under the cap. In addition, the NFL may fine a team up to $1 million per day for exceeding the cap. In practice this doesn't come up because if a proposed contract would put the team over the salary cap, the NFL won't approve the contract.

    Player benefits are currently capped at $12,156,000 per club above the salary cap.
     
  4. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Posts: 47,389

    Still, the extent of revenue sharing in the NFL, along with their unified front for negotiating television contracts has been a lynchpin to their success, and the salary cap also plays a key role in controlling expenses.

    Baseball players will probably sit out a long time rather than play with a cap. Now a cap for rookie contracts could very well become a part of the picture.
     
  5. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,311

    Salary cap presents a level playing field, idea being " any given sunday , anybody can win"
     
  6. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,311

    In all reality , why does Toronto even have a baseball team? No one goes to the games. Read somewhere that one can buy a wed night game tik for $9. We pay more then that to see a AA team , funny thing is , they are Toronto,s AA team.
     
  7. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Posts: 47,389

    Last time I attended a ballgame, it cost four dollars. Including parking.
     
  8. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,311

    I took the wife in July , ( it was her valentines day pres) $30 to park, $120 to get in $7 for a beer.
    Going again the begining of oct ( that was bday pres)
     
  9. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Posts: 47,389

    I sure hope $120 got you two good seats.
     
  10. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,311

    Yeah about 30 rows back behind home plate. Watched the 8th and 9nth from 3 rows back.

    Last yr payed $280 to see bosox /yanks , those seats were 3 towns away. Spent that game standing.
     

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