Quote:
Originally Posted by Locke
I think you're really overestimating the value of an NFL franshise. $1B each? There are probably a couple worth that, and probably more worth less than half that.
And $1B on TV rights divided among all the teams who have shareholders as well as interest in debts to pay isnt as nice as it may sound.
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Well $9 billion divided among the teams doesn't seem so bad.
You can't use the argument the revenue isn't that huge if split among all the teams and ignore that the debt is as well.
I mean seriously, the NFL salary cap is done as a % of league wide revenues, ie, TV, Radio, and Merchandising. I think this year it is at something like 60% of revenue, and the Salary Cap is like $120 million dollars. Which means their revenue is somewhere close to $200 million/year, and this doesn't include ticket sales either.
So $9 billion divided by 30 teams is $300 million in debt for each team, but their revenues are OVER $200 million each per team.
So yeah, they have a lot of debt, but their revenue is also huge.
Just because a business carries debt doesn't mean they can't make a profit, and I'm fairly certain every team in the NFL is turning a profit right now.
The whole point of this article is that the NFL is reducing the ammount of debt each team is allowed to carry, and is doing it as a means of reducing the ammount of signing bonuses a team can give out, and this is all to do with the upcomming CBA expiring. The $9 billion in debt, is a throw in number that really says nothing about the financial stability of the NFL.