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

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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.

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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!

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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...:)

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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.

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Posted · Report post

Like most businesses, even the big ones. Very little profit in them. But it's nice to think that the rich get richer...

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Don't go chasing waterfalls

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Don't go chasing waterfalls

Crazysexycool.

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What the owners are saying is this

You have stadium workers, you have the players, the Front Office, Coaches..trainers.. Stadium upkeep, Players, the league...so forth...

in 2007/2008 and 2009 there were a few teams that lost money and (Miami being the worst one off )(-400 million because of stadium cost.)

So while I don't think the league as a whole is losing money, I could see that a few teams because of the stadiums being down the hole on money.

Avg income for a team during those 3 years was around 20 million and that was before stadium upkeep was included.

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Question

Do you really classify players as employees?

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A few things

Most of the teams (24 of 36) have a profit margin greater than 10%. However this is pretax. But I'm sure each team has a team of tax accountants making sure things are OK. I wouldn't worry about that.

Of the teams that have a profit margin less than 10% half have a pretty large debt ratio

Only 2 teams lost money

All of those metrics are far and away better than the NBA (who are facing a real lockout) the MLB and NHL

Jerry Richardson is one of the few owners who are making a margin less than 10% and haven't taken on huge debt. the others are the Titans, Broncos, 49ers, Packers and Raiders

If you compare these numbers to 2007 they are much better. More teams are above 10% and less teams are losing money. Additionally the top teams are making WAY more money than they did a few years ago

http://www.forbes.com/lists/2007/30/biz_07nfl_NFL-Team-Valuations_Income_2.html

I agree with you that a shrewd business owner wants to maximize ROI and profit. But it certainly appears that the NFL is in the best financial shape it has been in a while despite player salaries.

I'm not saying I wouldn't do anything different as an owner. However between the Harbaugh comments and the pie charts I'm wondering if Jerry is being honest with all of us

I don't like liars

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Question

Do you really classify players as employees?

Not cube dwelling accountants.

Rainmaking superstar salespeople.

In many companies the rainmakers make way more than the CEO

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Question

Do you really classify players as employees?

What else would you classify them. They aren't partners, because they don't invest any money up front. They aren't volunteers. And they aren't shareholders, as again they don't invest any money up front. They're not customers.

In all honesty, they probably do resemble more of a vendor for the team but by no means do the players want to be seen in that light aka independent contractor. Then, there is no basis for a unionized workforce or ability to demand things like health coverage ect.

By their own admission through the unionization of the workforce, they are employees.

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