Quote:
Originally Posted by Jimke
Bob Kraft will do what is fiscally responsible for his team. This
is why he is a millionaire and you are not.
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Actually, he's always done what is fiscally responsible for Bob Kraft. This is why he is a billionaire and not a millionaire.
So far, the returns on the investments that Bob Kraft has to make in order to field a highly competitive Patriots Team have coincided with his family's financial objectives. While it is very likely that this will continue to be the case, there is no guarantee what would happen in a theoretically uncapped NFL.
The Krafts are very conservative in how they manage their investment, but it's almost impossible to tell from the publicly available numbers what is actually going on in the economics of any NFL franchise (much to the consternation of the NFLPA).
Estimated (only the Packers, as a publicly held entity, "report" numbers) "Profits" are almost meaningless, as we have no way of knowing how Costs are either calculated or allocated. On the numbers that are estimated by outfits like
Forbes, the Patriots have the ninth highest Operating Margin in the league.
However, the two numbers that are probably most reliable, because they can be tied to external data, are "Debt" and "Revenue." The Patriots are the second highest Revenue generating team in the league (Redskins are first and Cowboys are third), which yields the high valuation that is informally assigned to the franchise. On the other hand, the Pats have the eighth highest level of Debt, because of their limited reliance on public funding. This gives the Patriots the ninth highest ratio of Debt to Revenue, not as bad as the New York teams or the Cowboys, but higher than 23 other Franchises and well above the low levels enjoyed by, for example, the Colts and Bills.
So, there's no way of knowing how far the Krafts would be willing or able to go in a theoretically completely uncapped world, but there can be no doubt that "the sky is not the limit."