Re: Each Owner Wants an Extra $32 mill a year?
posted at 3/5/2011 10:22 AM EST
$1000 dollars from a $100,000 investment is great. How many people here actually invest? If you think that is bad, then you are talking about another kind of investment altogether with much, much higher risk than the NFL.
Second, none of these owners invested $1billion dollars. Some have franchises that are valuated at $1Billion, but most spent between $100-200 million to purchase them. A HUGE part of their "profit" is the amount to which their team appreciates each season, oftentimes as much as $100million per.
Per the Pew center, the NFL is simply one fo the most lucrative businesses period. A typical "safe" investment like a Money market will yield .5% a year with the highest earning and least risky having something like 1%.
Buffalo, who was terrible last season, made $40 million dollars in profit and averaged something like $30 million a season over the decade. Their franchise is valuated at something like $900 million. The actual investment by the owner in the team that season was something like $140 million. Over the ten year period their team valuated from 365 million to 909 million. That is almost 60 million a year in value they average as well. Their average valuation plus profit over the decade would $85 million. That is about 10% of total team value each time spit between the team investment and cash in their pocket. As far as outgoing expenses per season which would stand around 125 million, that is something like a 90% return on their investment each season over that time span. That would be the money that actually "risked" (lol) on the team that season. Obviously, their sterling recor shows how the Bills billionaire ownership are classic American enterpenurial moguls, as they were the best team right? Surely, every business in the USA is set this way, where you FAIL and create a terrible product and still turn out those kind of numbers?
Ralph Wilson paid $25,000 for the Bills in 1959.
That is an incredible "return" on the investment for a team that is terrible, and a perfect illustration of how the NFL is in reality a slam dunk with a more stable payout and much, much higher yield payout than even the safest forms of investment you can make.
I don't understand why so many average folks are crying in their beers fro these robber barons. Corporate welfare, what the NFL is currently milking, is a crime. In any other business most of these teams would be sold and gutted by now because of their incompetent ownership, but the OWNERS' UNION collectively bargained their way out of any risk at all.