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Blackout Revelation

Started by Non-RedNeck Westsider, September 15, 2010, 01:59:01 PM

Coolyfett

Quote from: Keith-N-Jax on September 17, 2010, 03:20:14 PM
Now that Moses has returned to Denver, they'll get back on the ticket issue no doubt(they never left it actually). How many years in a row have the Charges made the playoffs? You'd expected the pathetic play of the Jags to be B/O. The Chargers regularly make the playoffs, defeat the Colts on a regualr basis, imo, stands should be full. No talk of that though.

No hype no sales...San Diego has a lot in common with Jax. Its the local medias job to overhype the brand..Winning only helps get a playoff spot & a chance to compete for a Championship. During the regular season you are paying for the drama & unpredicabilty of that particular sport. The Jags can rig their schedule like college football does. The local media is the main marketer of a sports team. The fans have to love the playerS. Jacksonville media is not trained to cover anything else but college football.
Mike Hogan Destruction Eruption!

Non-RedNeck Westsider

On a side note, if everyone already knows that the Coliseum is a bad venue, then wouldn't it make sense to move a team, that's already close by, to a better stadium?

More of our concerns will not be this year.  How many of the 41k season ticket holder will still have their tickets next year?  If they did the 3/30 plan (I assume a lot did) then we have, say.....  30k returning seats for 3 years.  If the Jags can (I think they will) make a trip to the playoffs this year, then those remaining seats will be gobbled up. 

None of this matters if there's a lockout next season.
A common mistake people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools.
-Douglas Adams

Wacca Pilatka

I read that about 1/3 of season ticket holders opted for the 30/30.  I did  :)
The tourist would realize at once that he had struck the Land of Flowers - the City Beautiful!

Henry J. Klutho

jandar

Quote from: Shwaz on September 17, 2010, 10:32:11 AM
Quote from: Dog Walker on September 17, 2010, 10:02:44 AM
I always thought NFL teams made most of their revenue from TV advertising, but I know zero about NFL team finances.

Does anyone know what the proportion is between ticket sales and advertising revenue?

I'm not sure how the revenue portions break down... but I believe the team makes money on ticket revenue and the league makes money from tv revenue which is split amongst all the teams.


The salary cap for players salaries last year was 127 million

TV revenue for the NFL last year was around 4 billion dollars.
That is split equally amongst the 32 teams. That is around 125 million per team.
http://www.nflplayers.com/articles/cba-news/nflpa-files-complaint-over-leagues-guaranteed-tv-deals/

In essence, the TV deals pay for most of the players salaries, leaving team expenses and such to cover. Which Jacksonville was around 15 million under the cap, so it had to pay out 110 million out of 125 million.

The local ticket sales help the teams bottom line, but they pay out a third of that amount to the NFL for further revenue sharing.

Here's a great article by Forbes last year:
http://www.forbes.com/2009/09/02/nfl-pro-football-business-sportsmoney-football-values-09-values.html

QuoteThe finances of the NFL remain unparalleled in professional sports. Revenues for the league's 32 teams rose 7%, to $7.6 billion primarily due to the league's television deals with CBS  ( CBS -  news  -  people ), NBC, Fox and ESPN, which combined paid each team $94 million last season. The NFL Sunday Ticket on DirectTV  ( DTV -  news  -  people ) netted each team an additional $22 million in 2008 (the broadcasting deals are also the primary collateral for the NFL's $1.3 billion credit facility, used to finance a cheap source of working capital for owners). Ticket and concession revenue increased 6% last season, kicking in an average of $59 million per team.

With player costs (including bonuses and benefits) increasing only 4%, to an average of $135 million per team, the 2008 season represented the NFL's third most profitable year ever: Operating income (earnings before interest, taxes, depreciation and amortization) went up 31%, to an average of $32 million.

The next few years will be much more challenging. The NFL extended its TV rights deals in recent months with CBS, Fox and NBC for an additional two more years each--through 2013. But the deals were for annual fee increases of about 2%, the smallest ever.

The NFLPA has a lawsuit to try to prevent owners from collecting the television revenue next year if there is a lockout. That is an instant 125 million dollar profit for each owner if this happens.

Don't let the owners fool you, even if they do barely break even a few years, the net worth of their team increased dramatically.
Forbes places Jacksonville last at a value of 725 million.
Wayne Weaver (and others) bought the team in 1993 for 208 million, that's a 500 million dollar profit over 17 years, or around 30 million a year in value.
15% growth on your money is a damn good return.

CS Foltz

And we are concerned about blackouts? Much thanks for the information and the link jandar!