Dallas could lose revenue if no fans in the stands for games

Swanny · May 21, 2020

buybuydandavis said:
Nope. AFAIK, contracts are denominated in dollars. A contracting cap means huge problems for the league. Some players will just have to be cut. Really, most free agent contract will be overpriced, and teams will cut a ton of players now available for other teams, driving the free agent prices down further.

The league screwed up. All contracts should be denominated in % of Cap, so that contracts automatically adjust to cap moves.

This takes care of uncertainty about how the cap will move *on both sides*.

As an aside, league fines should be denominated in percentage of a player's cap hit for the year. Fines are crushing for PS players promoted to a couple of games, while irrelevant to top players making tens of millions.

That's not what I meant. Free agent contracts will be smaller because the cap number will be smaller. Something Dak and his team should be thinking about. He doesn't want to be a FA next off-season.

jay94 · May 21, 2020

There all gonna lose revenue, the billionaires will be ok, main street won't be. Won't be shocked at all if the salary cap actually decreases next year. Every stadium will struggle filling more due to financial restraints than the actual fear itself. Going to stadiums is a luxury it will be one of the first things people cut.

Typhus · May 21, 2020

A restructure of the NFL Season Ticket rights should be on the table and being discussed.

doomsday9084 · May 21, 2020

I'm stunned this isn't getting a lot more discussion. The NBA is projecting a 30-40% reduction in the salary cap for next year which, like the NFL, is a percentage of revenue.

This is kind of a big deal. I know we aren't allowed to talk about covid19 here but this has a legitimate football angle. If the league can't let in fans, you are looking at the cap dropping for 2021 by 10's of millions of dollars.

Its being talked about in some corners:
https://www.insidehook.com/daily_brief/sports/nfl-salary-cap-2021-covid-19

According to Schefter, a 16-game schedule being played with no fans could cost each NFL team upwards of $100 million in lost revenue. Overall, that would set the league back $3.2 billion. If games are canceled, losses in TV revenue could make that figure even larger.

Due to that, owners and team executives are planning for the salary cap in 2021 to take a massive hit due to COVID-19.

“The various estimates I’ve gotten from executives to owners is that the cap could be down anywhere $30 million to $80 million in 2021,” Schefter said on the podcast.

Swagger · May 21, 2020

doomsday9084 said:
I'm stunned this isn't getting a lot more discussion. The NBA is projecting a 30-40% reduction in the salary cap for next year which, like the NFL, is a percentage of revenue.

This is kind of a big deal. I know we aren't allowed to talk about covid19 here but this has a legitimate football angle. If the league can't let in fans, you are looking at the cap dropping for 2021 by 10's of millions of dollars.

Its being talked about in some corners:
https://www.insidehook.com/daily_brief/sports/nfl-salary-cap-2021-covid-19

According to Schefter, a 16-game schedule being played with no fans could cost each NFL team upwards of $100 million in lost revenue. Overall, that would set the league back $3.2 billion. If games are canceled, losses in TV revenue could make that figure even larger.

Due to that, owners and team executives are planning for the salary cap in 2021 to take a massive hit due to COVID-19.

“The various estimates I’ve gotten from executives to owners is that the cap could be down anywhere $30 million to $80 million in 2021,” Schefter said on the podcast.

Hopefully the Jones boys take note.

To their credit perhaps that was the real reason for signing Dalton.

Jake · May 21, 2020

12+88=7 said:
This is my speculation, but this maybe a reason why the Prescott negotiations have not been completed. Maybe Dallas will let Prescott play on the tag because that's a known expenditure. Dallas is unsure of future revenue so they are holding off till the future becomes clearer before committing to such a large amount of guaranteed monies.

No need to invent theories. The impasse was going on before the pandemic, and the dispute has been about length of contract.

Every team in the league will lose gate revenues. The Cowboys led the NFL in total revenue and are the most valuable franchise in sports. They're not pinching a few million on a player contract. Jerry spent more on a yacht.

conner01 · May 21, 2020

It’s not just the games
Jerry makes a ton of the stadium from concerts and other events
But there is very little you can do about that
His oil wells aren’t making any money either
I guess his banks are
He may have to pawn the little boat lol

CWR · May 21, 2020

doomsday9084 said:
I'm stunned this isn't getting a lot more discussion. The NBA is projecting a 30-40% reduction in the salary cap for next year which, like the NFL, is a percentage of revenue.

This is kind of a big deal. I know we aren't allowed to talk about covid19 here but this has a legitimate football angle. If the league can't let in fans, you are looking at the cap dropping for 2021 by 10's of millions of dollars.

Its being talked about in some corners:
https://www.insidehook.com/daily_brief/sports/nfl-salary-cap-2021-covid-19

According to Schefter, a 16-game schedule being played with no fans could cost each NFL team upwards of $100 million in lost revenue. Overall, that would set the league back $3.2 billion. If games are canceled, losses in TV revenue could make that figure even larger.

Due to that, owners and team executives are planning for the salary cap in 2021 to take a massive hit due to COVID-19.

“The various estimates I’ve gotten from executives to owners is that the cap could be down anywhere $30 million to $80 million in 2021,” Schefter said on the podcast.

Great post. I had no idea they were contemplating cutting the cap so much. A move like that would completely change the landscape of the league.

kskboys · May 21, 2020

12+88=7 said:
Just read that according to Forbes, in 2018 Dallas pulled in 950 million dollars in revenue.

621 million of this revenue or 65.4% was for 10 home games. This was tickets, parking, concessions, sponsors, and team merchandise.

The 621 million was nearly double of the next team New England. If there are no fans for games this year Dallas will stand to lose an enormous amount of revenue.

This is my speculation, but this maybe a reason why the Prescott negotiations have not been completed. Maybe Dallas will let Prescott play on the tag because that's a known expenditure. Dallas is unsure of future revenue so they are holding off till the future becomes clearer before committing to such a large amount of guaranteed monies.

Could? How could they not?

kskboys · May 21, 2020

Big D said:
The funny thing is that a lot of these cowboys revenues are up precisely because of the success of one Dak Prescott who was playing for yogurt money.

No they're not. C'mooooooonnnnnnn

12+88=7 · May 21, 2020

kskboys said:
Could? How could they not?

Like I said earlier the title was changed.

Of course every team will lose money if there are no fans. I just wanted to point out the enormous amount that Dallas will lose is staggering. Double of the team in 2nd place.

Even billionaires feel it when they lose their biggest revenue stream.

This loss makes one rethink the direction to take your business. This may not have been the reason why Prescott has not been signed, but going forward it will give Dallas more trepidation making large commitments for an unsure future.

ShortRound · May 21, 2020

Mind blown

lkelly · May 21, 2020

If you want to look at the finances, don't just focus on the home games at AT&T. It hosts a lot of other events and I'm assuming a fair number of them have been canceled or postponed. Not that Jerry is going to be in dire financial trouble, but the payments on that massive construction bill were projected to come out of the non-football cash flow too. Just be happy that it isn't a situation where the entire operation is football revenue only. I assume Green Bay is that way.

Big D · May 21, 2020

mcmvp said:
LOL..Oh please. The Cowboys have been the most valuable franchise in the NFL well before Prescott was drafted. And Jerry will still be raking it in after he’s gone.

If they let Dak hit the market, and rolled with Dalton… They would not make a penny less. You’re fooling yourself if you think they need him.

Of course they are the most valuable but if you think having star players burst on the scene doesn't increase revenue then you're tripping.

DandyDon52 · May 21, 2020

Swanny said:
Every team will lose money this year. Not just Dallas. But one thing to worry about is that the salary cap is based on revenue.... I think anybody tell me if I am right or wrong? If the salary cap is in deed based on revenue then the cap will go down next season. Making contracts smaller. Someone please tell me if that's right or wrong

The salary cap is based I think on the TV money .
The money they get from that is divided up evenly to all 32 teams, and that is used for setting the cap and paying the players and possibly
team expenses, travel equipment etc.
So then what the owners make on home games is all gravy aka profit.
The 8 home games provide all the profit, and sponsorship profits are tied to the home games mostly.

So with no fans they would lose a lot of their profits, but not the sponsorship money .
The teams would not lose money since the tv money basically pays for most everything.

So it would just be a small profit year and boy that upsets any billionaire !!!!!!!!!!! lol
That is why they came out early saying games with fans, because they want that money, stack up some more gold bars!
If they only mad a couple of gold bars, no fun stacking those !

big dog cowboy · May 21, 2020

12+88=7 said:
Just read that according to Forbes, in 2018 Dallas pulled in 950 million dollars in revenue.

621 million of this revenue or 65.4% was for 10 home games. This was tickets, parking, concessions, sponsors, and team merchandise.

If there are no fans for games this year Dallas will stand to lose an enormous amount of revenue.

Losing some revenue but not losing money.

Considering the current state of business in this country, the Cowboys are doing just fine.

Verdict · May 21, 2020

TwistedL0g1k said:
I don't buy it.

Yes- The Cowboys organization could take a significant hit to this year's revenue.

But this does not factor into the negotiations with Dak in the least.

I am not sure how you arrive at this conclusion.

Nav22 · May 21, 2020

EVEN IF the Cowboys lost revenue this year, it wouldn’t change how the Joneses would do business.

The NFL will bounce back and the Cowboys will be a cash cow again soon enough. They’re not having a fire sale because of 1 bad year economically.

DandyDon52 · May 21, 2020

lkelly said:
If you want to look at the finances, don't just focus on the home games at AT&T. It hosts a lot of other events and I'm assuming a fair number of them have been canceled or postponed. Not that Jerry is going to be in dire financial trouble, but the payments on that massive construction bill were projected to come out of the non-football cash flow too. Just be happy that it isn't a situation where the entire operation is football revenue only. I assume Green Bay is that way.

I dont think jerry owes any money on the stadium. it is paid for by arlington, and jerry threw in some of his own money too back when it was built.
So no payments there.
Jerry will still make money, just not as much as normal.
the papa johns pizza ads on tv will still run , att still pays, all the official blank of the cowboys still pay.
Knowing jerry he will still collect the season ticket money, put it in bank, draw interest on it till at some point he has to refund it,
then he will try to not refund it and just say let this be for next season.

And if CC is right then extra nfl games on tv could generate as much or more for the teams and make up for the usual home game money.

Qcard · May 21, 2020

jazzcat22 said:
Those $9 beers and $13 hamburgers can add up that is for sure. Game day programs as well, merchandise and souvenirs.

But tickets and parking is already paid for by most season ticket holders. It is a matter how they refund those amounts.
They will first try to get them to use it as future credit as opposed to out right refunds.

Exactly just comes down to whose ox the billionaires are going to gore. Let not assume Pro Football is there only cash or revenue supply.
Will the reneg on player contracts?

Will they look into goring other parts of their portfolio?

Will they pawn the yatch?

Dallas could lose revenue if no fans in the stands for games

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Beyond tired of Jerry

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