Forbes: The Business Of Football, 2009

[BPF]

Pats are 3rd most valuable NFL franchise for the 3rd consecutive year: The Business Of Football, 2009 - Forbes.com

MOST VALUABLE TEAMS
1.Dallas Cowboys
2.Washington Redskins
3.New England Patriots
4.New York Giants
5.New York Jets
6.Houston Texans
7.Philadelphia Eagles
8.Tampa Bay Buccaneers
9.Chicago Bears
10.Denver Broncos
11.Baltimore Ravens
12.Carolina Panthers
13.Cleveland Browns
14.Kansas City Chiefs
15.Indianapolis Colts
16.Pittsburgh Steelers
17.Green Bay Packers
18.Miami Dolphins
19.Tennessee Titans
20.Seattle Seahawks
21.Cincinnati Bengals
22.New Orleans Saints
23.Arizona Cardinals
24.San Diego Chargers
25.St Louis Rams
26.Buffalo Bills
27.San Francisco 49ers
28.Detroit Lions
29.Jacksonville Jaguars
30.Atlanta Falcons
31.Minnesota Vikings
32.Oakland Raiders

 

[BradyFTW!]

suck on that, New York.

 

[DarrylS]

Look at who is # last

 

[patchick]

Look at who is # last

Yep, and it's really pretty sad. It takes a mammoth amount of mismanagement to tumble the Raiders -- with their tradition of outlaw cachet, nationwide following, and biker/fashion-ready silver and black duds -- below the likes of the Jaguars.

 

[RxJock1120]

How can the Detroit Lions not be last???!!! 0-16 team operating in the lucrative Detroit media market!!!!

 

[RobertWeathers]

What is equally as impressive is that they are 2nd in both operating income and revenue. Would love to know what their net income is. Curious to know how big of a bite Taxachussetts takes out of the Krafts.

 

[Rob0729]

Dallas may drop since Jerry Jones is struggling to get anyone to buy the naming rights for his new stadium which he was counting on $10 million a year for it. He already lost $10 million for this year. He seems adament about not selling the naming rights for less. So it could be several years before he does.

 

[Patsfanin Philly]

Pats are 3rd most valuable NFL franchise for the 3rd consecutive year: The Business Of Football, 2009 - Forbes.com

Can you imagine if Dallas ever made the playoffs or heavens won a playoff game???

 

[RobertWeathers]

Dallas may drop since Jerry Jones is struggling to get anyone to buy the naming rights for his new stadium which he was counting on $10 million a year for it. He already lost $10 million for this year. He seems adament about not selling the naming rights for less. So it could be several years before he does.

Not only that but their debt/equity ratio will go up big time. Financing $1.5b stadiums will do that.

 

[shmessy]

Redskin fans still don't understand where their money went.

 

[Rob0729]

Redskin fans still don't understand where their money went.

Yeah, they do. It went to Dan Snyder's fantasy football team or as it is better know as the Washington Redskins.

 

[shmessy]

Yeah, they do. It went to Dan Snyder's fantasy football team or as it is better know as the Washington Redskins.

What a financial pillaging that is. But they are sheeple down here - - New Englanders had the good sense to mainly boycott Victor Kiam.

 

[PatsFanSince74]

Yeah, they do. It went to Dan Snyder's fantasy football team or as it is better know as the Washington Redskins.

With a franchise value estimated at $1.5 billion, it seems to be working for him.

 

[RobertWeathers]

With a franchise value estimated at $1.5 billion, it seems to be working for him.

............and he bought the team & stadium in 1999 for $800m. $700m in equity over 10 years. WOW.

Granted he did get $500m in financing and pays about $50m in debt service annually but sheesh, the guy knows hwo to make money no question.

How to build a winning team- seperate issue.

 

[Rob0729]

With a franchise value estimated at $1.5 billion, it seems to be working for him.

Well, at least one of his fantasies are fulfilled - being even more wealthy than he already is. The question is with his personal investment in the team and stadium, how much money has be made out of that $1.5 billion?

 

[sieglo]

Yep, and it's really pretty sad. It takes a mammoth amount of mismanagement to tumble the Raiders -- with their tradition of outlaw cachet, nationwide following, and biker/fashion-ready silver and black duds -- below the likes of the Jaguars.

+1. Absolutely amazing.

 

[CT_PatsFan]

1. The Redskins at #2 is shocking.
2. The Steelers not in the top 10 is shocking.
3. The Raiders in last place is hilarious / sad at the same time.

 

[patfanken]

I find this interesting. The Pats debt ratio is 21% according to Forbes. That the amount of debt into the value of the team. That would mean Kraft owes around $300MM to the banks. That's about 17th in the league. The Jets owner owes a whopping 64% of his team's value is in depth, last in the league (close to $800MM. Either way that's a lot debt service. At 8% that would be 24 MILLION dollars a year being sucked up by the banks WITHOUT lowering the principle. That's a big nut when you consider the payroll, AND the cost just to open the doors....and those pesky taxes. .

I wonder if union considers that, when they keep on wanting MORE.

 

[RobertWeathers]

I find this interesting. The Pats debt ratio is 21% according to Forbes. That the amount of debt into the value of the team. That would mean Kraft owes around $300MM to the banks. That's about 17th in the league. The Jets owner owes a whopping 64% of his team's value is in depth, last in the league (close to $800MM. Either way that's a lot debt service. At 8% that would be 24 MILLION dollars a year being sucked up by the banks WITHOUT lowering the principle. That's a big nut when you consider the payroll, AND the cost just to open the doors....and those pesky taxes. .

I wonder if union considers that, when they keep on wanting MORE.

It is but if the union wants to really get under the hood of the financial well-being of owners they would want to look at things such at the franchise's short/long term debt-to-capital ratio. That'll show a high-level of the financial well being of these franchises short of the GAAP analysis (god knows what these fanchises adhere too!!) or showing the balance sheet. I'm not a fi guy but I did stay at a Holiday Inn...;-).

However, the Return on Debt calculation would be one that the owners would use as that can discredit these astronomical franchise valuations and show the players that they are not rolling in the dough as the players think they are. I mean, if all these teams have a ton of debt, but arent making money, then the RoD would show that (theoretically) that potentially salary structures are out of wack and the owners aren't getting the ROI that they need to run the business.

But that brings up the point, the NYG and Bolts are shelling out big money contracts and that would indicate these fanchises have cash to burn.

But then you have Kraft who is on the finance committe and rather smartly is being very conservative financially with his team and being sure not to be a hyprocrite when talking turkey with the NFLPA.

You are spot on. Its a financial shell game. These numbers mean X, but the same numbers actually mean Y.

My .02$