PFT: Revenue sharing remains a key source of potential controversy... 'Boys blurb

WoodysGirl

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Posted by Mike Florio on March 21, 2010 7:45 PM ET

We've heard from multiple league insiders who agree with our assessment that the current unity among NFL owners is fleeting, and largely confined to one issue: squeezing the players into taking less money.

As to the issue of owners sharing the money that their teams generate, the potential for discord remains. Indeed, four years ago we believed that, absent a comprehensive solution, the NFL possibly could split into two leagues -- one made up of teams willing to share every dollar and another composed of teams with an "every man for himself" mentality.

Supplemental revenue sharing, the redistribution of wealth from teams making the most to teams making the least, has turned out to be a Band-Aid at best. Meanwhile, the traditional notions of sharing have been challenged over the past decade.

A league source tells us that, for example, the traditional 60-40 split of ticket money between home team and road team doesn't apply universally. Per the source, the Cowboys have finagled an exception for club seat revenue, apparently to help defray the costs of the North Texas Football Cathedral. Other teams have worked out similar deals, many of which transactions have received little or no publicity.

Bottom line? If the NFL plans to maintain competitive balance via a salary cap and a salary floor based on total football revenues, any new agreement must account for the fact that a formula based on total revenues will increase the labor costs for low-revenue teams. Absent a long-term answer to this specific problem, the situation will continue to create controversy every time a labor deal is due to be renewed, and it will only get worse as the gap in the revenues continues to grow.

In the interim, the challenge for the NFL will be to keep that percolating problem tightly under wraps. For the NFLPA, the mission is clear -- find a way to force this core issue to the surface sooner rather than later.
 

Four

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I wonder how much revenue the league would lose if the cowboys went away.
 

RealCowboyfan

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Four;3315847 said:
I wonder how much revenue the league would lose if the cowboys went away.


It's a whole lot of viewers going to stop watching football. Dallas Cowboys is America's Team. That's like firing Victor Newman from the Young and the Restless, what type of fan base will they have after that?
 

jobberone

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The haves must be rebelling against the have nots and why not? They had better take a long hard look down that road should they want to stop the redistribution because they have the best thing going in town. I wouldn't want to mess with it too much. GB cannot compete with Dallas without redistribution of wealth. That's fine with me on the competitive side of things but overall that could spell trouble for the league.

Oh well. Sink or swim could be the new motto. It would sort itself out over time but likely at the expense of some teams moving. ???The San Antonio Packers.
 

Hoofbite

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RealCowboyfan;3315956 said:
It's a whole lot of viewers going to stop watching football. Dallas Cowboys is America's Team. That's like firing Victor Newman from the Young and the Restless, what type of fan base will they have after that?

Many would just watch another team. Not everyone is all that die hard.
 

jman

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A league source tells us that, for example, the traditional 60-40 split of ticket money between home team and road team doesn't apply universally. Per the source, the Cowboys have finagled an exception for club seat revenue, apparently to help defray the costs of the North Texas Football Cathedral. Other teams have worked out similar deals, many of which transactions have received little or no publicity.

And apparently still getting no publicity...Why not quote an example and not just mention the Cowboys?
 

Cowboys22

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I'm for sharing just enough to keep teams afloat but thats it. No way should an owner like Jones that has put everything at risk to build a massive cash cow stadium have to share revenue to the point that the "do nothing" teams are able to sit back and still be profitable and and as competitive as the Cowboys. The NFL should not be run like Obama's social justice view of America.
 

VACowboy

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Cowboys22;3316019 said:
I'm for sharing just enough to keep teams afloat but thats it. No way should an owner like Jones that has put everything at risk to build a massive cash cow stadium have to share revenue to the point that the "do nothing" teams are able to sit back and still be profitable and and as competitive as the Cowboys. The NFL should not be run like Obama's social justice view of America.

*BINGO*

And it goes further than that.

There are owners like Jerry Jones, whose businesses ARE football, who plow tons of money into building their teams brands, and then there are owners who take the shared revenue and spend as little on their teams as possible.
 

TNCowboy

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I think this is before this season, but according to Forbes, GB's revenue is about $50M less than Dallas'. $280M to $230M. That's a lot of $$$, but given that Dallas would have much higher costs apart from team salary, it's a lot less than most people think. Even Jacksonville, with their near-empty stadium, had revenues of over $200M. If Forbes is right (not sure how they get this info), but GB's operating income was double what Dallas' was.

I don't blame Jones for fighting further revenue sharing. If his revenue took a quantum leap in 2009, it's because he took a huge personal gamble and built a megastadium. He got some public financing, but the Cowboys had to borrow hundreds of millions. And that debt has to be serviced. That's a cost that the Packers, Bills and Rams of the world don't have, at least nowhere near the degree the Cowboys do.
 

Alexander

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VACowboy;3316025 said:
There are owners like Jerry Jones, whose businesses ARE football, who plow tons of money into building their teams brands, and then there are owners who take the shared revenue and spend as little on their teams as possible.
And those are the owners I have no sympathy for.

Say what you want about Jones, but he treats his team like the business investment that it is and no owner works harder to keep his brand at the forefront.

Putting the lower tier franchises on welfare for bad or lazy ownership is ridiculous. Put a better product on the field and the money will come. Put in half effort, you will lose money. That is all there is to it. These franchises do not have to spend more money, they simply need to be run better. That is the problem. Increased cash flow still will not overcome organizational deficiency. They will just be throwing money at the same problem and that is not a solution.

It is simply wrong.
 

zrinkill

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Alexander;3316041 said:
Putting the lower tier franchises on welfare for bad or lazy ownership is ridiculous. Put a better product on the field and the money will come.

:bow:
 

Hostile

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Alexander;3316041 said:
And those are the owners I have no sympathy for.

Say what you want about Jones, but he treats his team like the business investment that it is and no owner works harder to keep his brand at the forefront.

Putting the lower tier franchises on welfare for bad or lazy ownership is ridiculous. Put a better product on the field and the money will come. Put in half effort, you will lose money. That is all there is to it. These franchises do not have to spend more money, they simply need to be run better. That is the problem. Increased cash flow still will not overcome organizational deficiency. They will just be throwing money at the same problem and that is not a solution.

It is simply wrong.
In case someone didn't realize it, this post is pure genius.

:post:

:hammer:

Right on the friggin' :money:
 

zrinkill

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jwhardin;3316088 said:
I do believe Jerry told the other owners that he would show them how to make money.:laugh2:

He has ..... and they are too stupid and greedy to do it.
 

Doomsday

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VACowboy;3316025 said:
*BINGO*

And it goes further than that.

There are owners like Jerry Jones, whose businesses ARE football, who plow tons of money into building their teams brands, and then there are owners who take the shared revenue and spend as little on their teams as possible.

That is the problem with wealth distribution, there is no incentive for owners like Ralph Wilson to go out there and push their product hard. Everyone loses but him in that situation. Other owners lose because they are supporting him, players will never be paid top dollar by an owner like that and the fans lose because the team in their market doesnt care about winning.

Guys like Jerry Jones and other owners have to get tired of supporting owners that arent pitching in. Seems like a familiar theme and a lesson we as a nation are about to learn.
 

Doomsday

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zrinkill;3316122 said:
He has ..... and they are too stupid and greedy to do it.

They are far from stupid, they know they dont have to do jack and they can make money off the efforts of Jerry and others. They keep expenses in check and feast off the shared revenue pull.
 

casmith07

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No more revenue sharing. If you can't run your business, you fold. Should be simple as that. Either that, or bottom tier teams become farm teams in a minor league.

And Screw Florio for not being able to write an article without taking some sort of dig at the stadium. What a hack.
 

noletime95

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Alexander;3316041 said:
And those are the owners I have no sympathy for.

Say what you want about Jones, but he treats his team like the business investment that it is and no owner works harder to keep his brand at the forefront.

Putting the lower tier franchises on welfare for bad or lazy ownership is ridiculous. Put a better product on the field and the money will come. Put in half effort, you will lose money. That is all there is to it. These franchises do not have to spend more money, they simply need to be run better. That is the problem. Increased cash flow still will not overcome organizational deficiency. They will just be throwing money at the same problem and that is not a solution.

It is simply wrong.

A freekin Men
 

VACowboy

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The very worst thing, IMO, is how some NFL owners are battling against a realistic team spending floor while some mouths in the media are casting Jerry as "unwilling to share the wealth" and blaming him for the CBA debacle.
 

burmafrd

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Stop the revenue sharing and put the money into a stadium fund. And some into the retired players fund for healthcare and the like. The owners that do not work their butts off promoting the teams will sell to those that will work. And if a club folds there will be those willing to buy it and try again.
 
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