IS the NFL losing money...Jerry Richardson's 200M shortfall pie chart

[Montsta]

The real question is:

Jerry's Pie Chart Notepad Vs. Al Davis' Overhead Projector

Steelcage Deathmatch. Who wins?

[Snake]

No one is losing money in the NFL. Owners or Players for that matter. Its just who gets the most on the pie chart is what the fuss is about.

[jpniner]

If the Panthers have $247 Million in Revenue, and only a $15 Million Profit the owners are getting raped. Especially given they are in the Entertainment business.

Thats a 6% Profit Margin, not far away from losing money. One big terrorist attack or Great Depression away from being screwed financially.

The Charlotte Observer operates on around a 40% Profit Margin by comparison.

[MHS831]

If the Panthers have $247 Million in Revenue, and only a $15 Million Profit the owners are getting raped. Especially given they are in the Entertainment business.

Thats a 6% Profit Margin, not far away from losing money. One big terrorist attack or Great Depression away from being screwed financially.

The Charlotte Observer operates on around a 40% Profit Margin by comparison.

I think he referenced TV revenues. Ticket sales, concessions, merchandice, etc. were not included.

[jpniner]

I'm looking at the Forbes numbers, if reading that right the Panthers are operating on a 6% profit margin last year.

Bottom line is the Players/union takes None of the business Risk, but want to dictate their wages and use force through the threat of a Strike to get what they want, something they fundamentally, morally do not have a Right to.

[Montsta]

Now if they negotiate a rookie cap. Does the money saved go to veterans or does it go into the pockets of the owners?

Also I'm all for them fighting for retirement benefits. i do think they are compensated fairly though.

I thought I read that there was something like $200MM extra if a rookie scale is in place. What I couldn't understand is that the owners agreed to relenquish those monies, but were still debating whether it went to retired health benefits or current veteran salaries, which seems like it would be more of an internal player issue?

Maybe someone can enlighten me?

[MHS831]

Risk is the key word. Players suck, owner takes risk and players get paid. Players do well, want to renegotiate. Hold out.

The rookie scale should free up money for the veterans. But you are right--risk is why this should not be viewed as equals slicing pie.

[jpniner]

My guess is Vets start getting better salaries, more guaranteed $$$, etc. depending on Salary cap.

Will make for a better game also, the Jarmcus Russell's will have to play good before they can really live large.

[Panthro]

6% would be the operating margin by the numbers listed in Forbes (for the panthers)

[jpniner]

Being under Contract and then holding out like Revis just did, is something that needs to be stopped and I'm sure the Owners can't stand.

They need an agreement between owners that in that situation, the player not honoring his Contract will not be picked up by any other team and will not be paid at all.

[jpniner]

What is Operating Income? Merchandise, Tickets, Concessions? only, and not TV?

All I want to know(not that we have any Right to know, it is a Private Company) is the Yearly Cost and Yearly Income to Calculate the Net Profit.

[Montsta]

I'm looking at the Forbes numbers, if reading that right the Panthers are operating on a 6% profit margin last year.

Bottom line is the Players/union takes None of the business Risk, but want to dictate their wages and use force through the threat of a Strike to get what they want, something they fundamentally, morally do not have a Right to.

If that is true, I am 100% on the owners side.

It's not exactly the same, but it reminds me of my dad growing up. He has been a licensed, bonded, insured contractor for 30 years. He has helped a lot of my friends and some family by letting them work for him to help make ends meet. He'd pay $15-$20/hour cash. I remember one guy that worked for him got butthurt because my dad made $700/day and he made like $150, and he felt like they were doing the same work. What he constantly failed to realize that if my dad got stiffed for the money, or there was a huge accident that cost $20,000 to fix, my dad assumed all of the risk, whereas the worker was getting paid regardless.

Sorry, but I'm not gonna bust my ass for 6%, and I god damn sure am not going to have any of my employees making more money than I am (ala Julius Peppers). Forget that noise!

[Jangler]

If that is true, I am 100% on the owners side.

It's not exactly the same, but it reminds me of my dad growing up. He has been a licensed, bonded, insured contractor for 30 years. He has helped a lot of my friends and some family by letting them work for him to help make ends meet. He'd pay $15-$20/hour cash. I remember one guy that worked for him got butthurt because my dad made $700/day and he made like $150, and he felt like they were doing the same work. What he constantly failed to realize that if my dad got stiffed for the money, or there was a huge accident that cost $20,000 to fix, my dad assumed all of the risk, whereas the worker was getting paid regardless.

Sorry, but I'm not gonna bust my ass for 6%, and I god damn sure am not going to have any of my employees making more money than I am (ala Julius Peppers). Forget that noise!

not touching that one...

[mountainpantherfan]

Back in the 1990's there was this music group called TLC. They were very, very popular. The biggest hit was an albumn that sold over 10 million copies. They were also on a world tour that was bringing in a lot of money. The very next year all three members filed for bankruptcy. They famously explained why on an episode of Behind the Music on VH1. Watch that and it is very easy to see how an NFL team is losing money.

People just assume that higher revenues equal higher profits. It's just not true.

The one thing that players don't get is how they want 60% of the total and don't want the owners to take anything off the top. Yet, I don't see any players offering up any of their own money to help build a stadium, repave parking lots, rennovate the training facilities ect. The players have an unrealistic view how businesses operate. I really think they believe that any and all profits go into the owners pocket just like the players money goes into thier pocket.

As a whole, yes the NFL is probably not losing money. But when you brake it down team by team and factor in furture monies needed for investment, very few teams were making money under the last CBA.