How Stephen Jones can hide ~ $100 million of profits

[rynochop]

If Floaty went to college.

Nice.. More eye rolls needed

 

[waldoputty]

Filling the stands for 8 games and making millions of dollars does not build brand. What universe do you live in.
Our economic system is capitalism not socialism and Jerry practices that just like Warren Buffett. They don't invest
billions to make peanuts. He's going to fill the stadium this year just like last year. They come to see Dak, Zeke, Dez
run that offense. No one comes to the stadium to see defense. Just the nature of the game.

it does not build brand to not improve the team while the team really has lots of cap space.
i am well familiar with capitalism and practice it often, thank you.

 

[Alexander]

Nice.. More eye rolls needed

 

[NEODOG]

Why are we losing our own players and not replacing them with better or at least similar level free agents?
The team claims poverty and good financial planning.
The free agent market is overpriced...

The team is stressing value, but what they mean is profits.
They say long term, but what they mean is hiding profits long term.
Of course, fans would be angry if they see $100 million of cap unused.
How are they going to hide that from the fans?
It is quite simple - in the name of long term stability.

The team has been restructuring about 20-30 million dollars per year.
By systematically turning off the restructuring, you can hide about 50 million profits from the fans.
In fact, they can make their cap space look tight with this mirage in 2018,
in 2019, the savings are so huge (67million) that 32 million still shows.
in 2020, the savings are even large (92 million) that 47 million still shows.
how to hide that, they can change the standard contracting structure - essentially front loading contracts.
the drop in profits in 2021 is from the massive contracts given to resigning the class of 2016 - takes an extra year or 2 for massive cap hit to show up. actually after 2020, the model is not even relevant as there will be a new TV contract.

With the traditional 20 million of restructuring:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 28.66---$ 67.91--$ 92.72---$ 72.23

To hide the profits from the fans, with 20 million of restructuring turned off:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 8.66-----$ 32.91---$ 47.72--$ 22.23

These calculations have assumed:
1. continue to sign 3 free agents per year - 1 at 2m aav, 1 at 3m aav, 1 at 4m aav
2. resigning own free agents - martin, collins, jones and most of the class of 2016 as good starters or stars, resigning class of 2017 as decent starters (assuming draft results are not as good)

For those who want to question the financial model, I would be happy to email the model to you.
A more detailed report of the model will be posted on BTB.

If that was 50 Billion I might side with you.....

But lets see:
$1B+ stadium
$2B practice facilities & shopping center

50 million is change....it's like a nice family vacation

Unless your doing bonds with $50M....

 

[waldoputty]

So if you have a business, you would not want to make money? You would want to give all your profits to your employees and not take care of your family?
Oh, yeah, this is a horrible analogy, as the NFL franchise is not your normal business. But it makes a point.
And you are fooling yourself if you think Jerry doesn't want to win over making money...he will make money...but he wants to win....

you know that is a horrible analogy.
if it was jerry, it would be different.
it is clear who is in charge now and it is not jerry.

 

[DandyDon52]

Those of us who watched JJones over pay players for years knows that hiding profits charge is specious.
They've changed their financial structure after high payed FA laid down on him. Observing there production dollar
convinced Jerry and Stephen that high end FA weren't profitable. Now that 's true. Bad investments. Sometimes there are exceptions.

that would be long term high paid FA ?
if you pay a guy for 1 or 2 year contract, you cant hardly get stiffed.
Eagles signed jeffery for 1 year 8 mil, that is a good deal.

 

[waldoputty]

If that was 50 Billion I might side with you.....

But lets see:
$1B+ stadium
$2B practice facilities & shopping center

50 million is change....it's like a nice family vacation

Unless your doing bonds with $50M....

i dont have his financials for the stadium and shopping center
though you dont seriously think those are bad business moves?
btw, many of the filthy rich people i know like to squeeze every dollar they can.
that is how many of them got/stay rich.
jerry is a clear exception, obviously.

 

[DandyDon52]

And you are fooling yourself if you think Jerry doesn't want to win over making money...he will make money...but he wants to win....

he wants to eat his cake and have it to.
he wants to be GM spend less , and win too lol.

 

[waldoputty]

Stephen can run, but he can't hide from the truth that waldoputty has in store for him.

i am just a fan.
but i can speak my mind if i dont like it, just like anyone else.

 

[waldoputty]

Those of us who watched JJones over pay players for years knows that hiding profits charge is specious.
They've changed their financial structure after high payed FA laid down on him. Observing there production dollar
convinced Jerry and Stephen that high end FA weren't profitable. Now that 's true. Bad investments. Sometimes there are exceptions.

if it was jjones, i would never make that charge.
things have gone 180 with the bean counter son

 

[JoeKing]

Stephen ain't getting anything past you @waldoputty.

 

[waldoputty]

More to the point, cap spending =/= cash spending and as teams are allowed to keep their financial statements private they don't need to hide anything via the salary cap.

they dont need to do anything.

however it does not look good to have 50-90 million in cap space and not spending it.
it just happens that he is changing the restructuring practice that wipes out 50 million from the cap space number.

 

[waldoputty]

Stephen ain't getting anything past you @waldoputty.

anyone who bothers to put this in a spreadsheet will see what is going on.
just need an open mind

 

[waldoputty]

he wants to eat his cake and have it to.
he wants to be GM spend less , and win too lol.

this is not jerry, it is stephen
jerry is the other extreme

 

[JoeKing]

anyone who bothers to put this in a spreadsheet will see what is going on.
just need an open mind

More power to you, man. Keep fighting the good fight. Don't let anyone discourage you.

 

[waldoputty]

More power to you, man. Keep fighting the good fight. Don't let anyone discourage you.

not worry, i wouldnt. there are enough that agree with me.

 

[Alexander]

i am just a fan.
but i can speak my mind if i dont like it, just like anyone else.

We get it, you won't be muzzled.

 

[JoeKing]

not worry, i wouldnt. there are enough that agree with me.

I agree you do have company... the lunatics run the asylum.

 

[waldoputty]

I agree you do have company... the lunatics run the asylum.

i am working on it

 

[p_tubbs]

Why are we losing our own players and not replacing them with better or at least similar level free agents?
The team claims poverty and good financial planning.
The free agent market is overpriced...

The team is stressing value, but what they mean is profits.
They say long term, but what they mean is hiding profits long term.
Of course, fans would be angry if they see $100 million of cap unused.
How are they going to hide that from the fans?
It is quite simple - in the name of long term stability.

The team has been restructuring about 20-30 million dollars per year.
By systematically turning off the restructuring, you can hide about 50 million profits from the fans.
In fact, they can make their cap space look tight with this mirage in 2018,
in 2019, the savings are so huge (67million) that 32 million still shows.
in 2020, the savings are even large (92 million) that 47 million still shows.
how to hide that, they can change the standard contracting structure - essentially front loading contracts.
the drop in profits in 2021 is from the massive contracts given to resigning the class of 2016 - takes an extra year or 2 for massive cap hit to show up. actually after 2020, the model is not even relevant as there will be a new TV contract.

With the traditional 20 million of restructuring:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 28.66---$ 67.91--$ 92.72---$ 72.23

To hide the profits from the fans, with 20 million of restructuring turned off:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 8.66-----$ 32.91---$ 47.72--$ 22.23

These calculations have assumed:
1. continue to sign 3 free agents per year - 1 at 2m aav, 1 at 3m aav, 1 at 4m aav
2. resigning own free agents - martin, collins, jones and most of the class of 2016 as good starters or stars, resigning class of 2017 as decent starters (assuming draft results are not as good)

For those who want to question the financial model, I would be happy to email the model to you.
A more detailed report of the model will be posted on BTB.

LOL#garbage