Why does an athlete need $30m instead of $20m?

Johnny23 said:

I took sports marketing in high school and was interested in getting into it as a career working for a pro team. When I was heavily involved with DECA and Delta Epsilon Chi which is the collegiate version of DECA and looking to major in marketing. I would research this kind of thing and did a project on owning a pro sports team. Most franchises opparate in the red and are saved by revenue sharing and the television deals. They don't turn a profit on their own. Even with sponsorships and the like teams struggle to make ends meet until the league wide checks clear.

Not everyone's the Yankees,Lakers, Bulls,or Cowboys. It's why the Eagles got bought for peanuts by Lurie and Kraft with the Pats and now they are worth much more relatively speaking of they resold. They're a sunken cost.

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Johnny23 said:

I took sports marketing in high school and was interested in getting into it as a career working for a pro team. When I was heavily involved with DECA and Delta Epsilon Chi which is the collegiate version of DECA and looking to major in marketing. I would research this kind of thing and did a project on owning a pro sports team. Most franchises opparate in the red and are saved by revenue sharing and the television deals. They don't turn a profit on their own. Even with sponsorships and the like teams struggle to make ends meet until the league wide checks clear.

Not everyone's the Yankees,Lakers, Bulls,or Cowboys. It's why the Eagles got bought for peanuts by Lurie and Kraft with the Pats and now they are worth much more relatively speaking of they resold. They're a sunken cost.

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Johnny23 said:

I took sports marketing in high school and was interested in getting into it as a career working for a pro team. When I was heavily involved with DECA and Delta Epsilon Chi which is the collegiate version of DECA and looking to major in marketing. I would research this kind of thing and did a project on owning a pro sports team. Most franchises opparate in the red and are saved by revenue sharing and the television deals. They don't turn a profit on their own. Even with sponsorships and the like teams struggle to make ends meet until the league wide checks clear.

Not everyone's the Yankees,Lakers, Bulls,or Cowboys. It's why the Eagles got bought for peanuts by Lurie and Kraft with the Pats and now they are worth much more relatively speaking of they resold. They're a sunken cost.

Click to expand...

Johnny23 said:

I took sports marketing in high school and was interested in getting into it as a career working for a pro team. When I was heavily involved with DECA and Delta Epsilon Chi which is the collegiate version of DECA and looking to major in marketing. I would research this kind of thing and did a project on owning a pro sports team. Most franchises opparate in the red and are saved by revenue sharing and the television deals. They don't turn a profit on their own. Even with sponsorships and the like teams struggle to make ends meet until the league wide checks clear.

Not everyone's the Yankees,Lakers, Bulls,or Cowboys. It's why the Eagles got bought for peanuts by Lurie and Kraft with the Pats and now they are worth much more relatively speaking of they resold. They're a sunken cost.

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Reid1boys said:

IM not aware of too many sports franchises that lose money.... ever.

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Reid1boys said:

I dont care if a team "Loses," 15




I dont care if teams "Lose," millions each year, they arent losing money. They have some seriously crazy tax filings where they are doing and buying all sorts of stuff and then they "Lose money." Even then, a team that loses money every year has that offset by the fact the value of their investment is increasing at an astronomical rate. The owner of a sports franchise will never lsoe money.

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Diehardblues said:

It is true that the value of a franchise continues to rise over time even if a franchise doesn’t turn a profit from year to year.

The NFL doesn’t have an issue anymore with their yearly bottom lines but it’s still a concern in other professional sports leagues who aren’t drawing the network TV deals or consistent turn outs in home attendance.

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Reid1boys said:

NBA teams are making bank due to the new TV deals.
MLB has profit sharing.

I know business owners that also, "Lose money." You do know there are ways to "Lose money," and make money at the same time, yes? No matter what is showing up on paper, they arent losing money. Pro sports has changed drastically, even going back to the 90s.

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Reid1boys said:

why should owners agree to that? Players are paid an ENORMOUS amount compared to the avg joe. They cant cover their own health care?

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Roadtrip635 said:

I became a Cowboys fan because of Walt Garrison and Roger Staubach. Part of of being in business is understanding what makes your business successful and in the case of the NFL, it's the players. The cost for those players go up, just like costs do for any business, but guess what else continues to rise? The revenue they continue to bring in.. The owners aren't making less when the cap rises and player's salaries rise, because their portion of that very lucrative pie is rising as well. The salaries are rising because the profits are rising. As far as risk for the owners, owning an NFL team is one of the safest investments a businessman can make. You can make poor choices and still make money.

Rayman70 said:

WE are about to find out soon. The new CBA should be very interesting...and I know healthcare for all players is a huge sticking point. IT MAKES GOOD SENSE. In the long run, its saves all parties money...ie settlements etc... pain management is a biggie. I have been dealing with a multitude of issues,and let me tell you...if not for having minimal healthcare like I do..it would be a tragic thing to have to pay for out of pocket longterm. Its long overdue for the parties involved to make it happen ...and at a reasonable cost.

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If an owner doesn't want to pay a player the price they ask for, they can let him walk or not sign and find a cheaper replacement. It happens on every team, every season. An owner can choose not to pay the salaries and payout the league minimum of the salary cap, but that will eventually affect their bottom line, there will be less interest from their fan base if they can't stay competitive. Instead, they can choose to reinvest into the company, the players, to improve the team and marketability.

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Red Dragon said:

Not another Dak thread - but someone please explain to me, from the perspective of a pro athlete, just what makes $30 million/year so badly necessary more than $20 million/year?

Yes, I know, more is always better. Yes I know, inflation. But there is virtually nothing you can want with $30 million/year that you couldn't have with $20 million/year, especially considering that there is no state income tax in Texas (unlike, say, an athlete in California or New York). You want big mansions? You got 'em - you can buy several every year. You want Lamborghinis, Ferraris, Porsches, Corvettes, Bugattis, Maseratis? You can buy a dozen each year. You want hordes of women flocking to you? Well, you would have had that with even just $2 million a year, let alone $20 million. You want to send your kids to private school, make sure your family is financially set for life? Again, you sure don't need an income of $30 million a year to do that.

This isn't even taking into account the fact that many such athletes are making plenty of money on the side through advertisements, endorsements, and other ancillary income.

Where I'm going with this is: The difference between $20 million/year and $30 million/year is virtually nil for a pro athlete - either way, he's positively bathing in wealth. But it makes a big difference to a pro team's salary cap, on the other hand. The $10 million difference could mean the difference between an NFL team being able to sign additional talent that could propel them over the top, or not being able to.

Is it simply about "Such-and-such an athlete got so-and-so much, so I want just as much?" Or, "I want to be THE highest paid so I can feel like No. 1?"

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BlueStar22 said:

Why does Jerry Jones need 6 billion dollars?

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kskboys said:

He doesn't.

However, that's a different conversation.

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ABQCOWBOY said:

No, you are dead wrong. We are talking about business here.

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Reid1boys said:

I dont care if a team "Loses," 15




I dont care if teams "Lose," millions each year, they arent losing money. They have some seriously crazy tax filings where they are doing and buying all sorts of stuff and then they "Lose money." Even then, a team that loses money every year has that offset by the fact the value of their investment is increasing at an astronomical rate. The owner of a sports franchise will never lsoe money.

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rocyaice said:

We never find out until guys are retired or dead.


I’m being dead serious. I’d appreciate the examples.

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FuzzyLumpkins said:

Again, there are guarantees and there are likely to be earned salaries.

And if a player makes all pro or the like then you can bet your backside that the agents starting point in negotiations is going to be the contracts with the top guaranteed and LTBE money contracts.

Nevermind that the scarcity of NFL talent makes it a sellers labor market.

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OmerV said:

I'm talking about Tampa Bay, where Winston's contract is up after this season and who Tampa showed they aren't happy with when they didn't immediately give him his job back when he was healthy and where they benched him later in the year. I'm talking about Tennessee, who may want a change from Mariota when his contract ends next year. I'm talking about Cincinnati where Andy Dalton is aging and declining and who has been paid the entirety of his guaranteed money and would not cause a cap hit if he were released. Maybe Denver who's 2nd round QB this past year is no guarantee to solve a woeful QB situation and who wont get paid so much on his 2nd round rookie deal that it would preclude signing Dak. I'm talking about any team that has a QB that retires or suffers an injury at QB or who's QB status may change over the next year for any reason that we may not know now.

These are all reasonable possibilities and there are always things that happen that we cannot know in advance Part of planning is covering the bases and contingencies. You are planning as if everything is certain to go exactly as you would imagine. How often is that the case?

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Roadtrip635 said:

I don't know what the team is willing to pay or what their counteroffers have been. We don't know what the sticking points are exactly, could be yearly average, guaranteed money, structure, bonus, years or combinations of those. We also don't know how often they are communicating, once or twice a week, less, more? They aren't locked in a room together until a deal is worked out.

Right now, it's all speculation or how close they really are in money or time. There could be a deal announced in the next couple days and they're just hammering out the details..

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