Archived

This topic is now archived and is closed to further replies.

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

41 posts in this topic

Posted · Report post

pretty goddamn important employees

Share this post


Link to post
Share on other sites

Posted · Report post

Question

Do you really classify players as employees?

Absolutely.

They are paid to perform a service, in this case, playing football. They are employees.

Share this post


Link to post
Share on other sites

Posted · Report post

I believe they are classified as independent..

Share this post


Link to post
Share on other sites

Posted · Report post

I need to go back and watch that part again. But nobody seems to buy the idea that the NFL is losing money

I know that Forbes may not have full audit reports but they capture the major stuff.

According to this the League had net pre-tax income in the hundreds of millions.

http://www.forbes.com/lists/2010/30/football-valuations-10_NFL-Team-Valuations_Rank.html

Here is some more math from the link below. The current TV deal works out to around $149M per team per year. The maximum salary per team (before this year) was $128M. Just on tv rights alone the teams have $21M each to cover operating expenses and we haven't even counted all the other revenue streams.

http://www.associatedcontent.com/article/6016664/nfl_2010_are_the_owners_losing_money_pg2.html?cat=14

So i am wondering if Jerry is being honest with his pie chart? something doesn't add up

Bottom line, screw pie charts. the Billionares are not going to keep overpaying the spoiled brat millionares.

Now here is what the Union needs to understand, it isn't the owners jobs to keep x player in his 12 houses, 18 cars, 200k per month expense account, all his hundreds of thousands in bling etc. Those days are going to come to a screeching halt come March.

Now can players still become millionares? Hell yeah. Well they still be paid better than any Job they can get with that college degree they 'earn' in school? Hell yeah! But bottom line, The owners are employers, players are employees and the high salarys are going to get cut.

'But the owners make so much profit'. Yeah and? I don't see MCSE's telling Billy Gates what he has to pay them. As for as the game goes, you could get rid of ALL the current players, and replace them over the next 3 years with draft picks and CFL guys and you won't know the difference 3 years from now the difference in the quality of the game.

Share this post


Link to post
Share on other sites

Posted · Report post

Remember, Jerry said $200 mil negative cash flow, not net income loss. I expect they were profitable on the income statement, but lost cash. Without a peek at the books, couldn't guess why, but the premise is not uncommon. However, cash is king in business...negative cash flow is, to borrow JR's words, "not sustainable".

If he's in fact operating at less than 10% margin, experiencing negative cashflow, and having to face the player union's legal sharks on a regular basis, then no wonder he seemed irritable at the press conference. He's a bump-in-the-road from real financial problems playing it that close. No wonder he's being Mr. Hardball right now.

2 people like this

Share this post


Link to post
Share on other sites