04-04-2008, 09:37 PM
is going bust. Notes on all the new stadiums have risen dramatically and the owners are taking it up the butt.
The last NFL bargaining agreement
04-04-2008, 09:59 PM
It’s clear more owners wish they would have voted against the deal, which raised the players’ share of the league’s $6 billion in annual revenues from 54 percent to 59.5 percent.
Denver owner Pat Bowlen, co-chairman of the league’s labor negotiations committee, said in January: “I think it’s pretty common knowledge our last labor agreement is not our smartest move and that we’re way beyond — and I’m not talking about just the Denver Broncos — I’m talking about just the league in general . . . we collectively, 32 teams, can’t live with this deal.”
The problem is the owners think the CBA deal has cut too far into their profit margins.
Green Bay is the only NFL team that makes its financial statements public. The Packers ranked about 10th in league revenue in 2006 and reported an operating profit of $22 million that year. Small-market teams say they have to work hard to stay in the black, and a few (like Jacksonville and Minnesota) have claimed they have lost money in recent years.
Denver is a “middle-class” NFL team that obviously is profitable. But that didn’t stop the Broncos from laying off front-office staff earlier this year. Paying 59.5 percent of revenues to players gives the Broncos lesser profits than they’re used to making.
The players take their cut of gross revenues, but they do not share in costs. The league’s 32 teams collectively are carrying $9 billion in debt, mostly from the construction of stadiums around the country and from the financing of the purchase of teams. The current auction-rate bond crisis is raising interest rates for those teams with stadium loans and further exacerbates the profit crunch.
Denver owner Pat Bowlen, co-chairman of the league’s labor negotiations committee, said in January: “I think it’s pretty common knowledge our last labor agreement is not our smartest move and that we’re way beyond — and I’m not talking about just the Denver Broncos — I’m talking about just the league in general . . . we collectively, 32 teams, can’t live with this deal.”
The problem is the owners think the CBA deal has cut too far into their profit margins.
Green Bay is the only NFL team that makes its financial statements public. The Packers ranked about 10th in league revenue in 2006 and reported an operating profit of $22 million that year. Small-market teams say they have to work hard to stay in the black, and a few (like Jacksonville and Minnesota) have claimed they have lost money in recent years.
Denver is a “middle-class” NFL team that obviously is profitable. But that didn’t stop the Broncos from laying off front-office staff earlier this year. Paying 59.5 percent of revenues to players gives the Broncos lesser profits than they’re used to making.
The players take their cut of gross revenues, but they do not share in costs. The league’s 32 teams collectively are carrying $9 billion in debt, mostly from the construction of stadiums around the country and from the financing of the purchase of teams. The current auction-rate bond crisis is raising interest rates for those teams with stadium loans and further exacerbates the profit crunch.
04-06-2008, 03:41 AM
the league needs to fix the draft payouts. everyone should want the first overall pick... now because of the guaranteed deal.. no one wants it.
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