REPORT: NFL, teams agree to raise debt limits $150M for each club

[Ian]

From Wickersham:

"The increased debt limit has been discussed among league and team executives for weeks, as clubs push for access to extra money in case games must be played without fans this season. It could cost clubs tens of millions of dollars in local revenue if games are played in empty stadiums."

Sources: NFL, teams agree to raise debt limits

 

[Ian]

The one thing I can't seem to find is the total revenue from television, which obviously will carry them through the season to compensate from the stadium revenues, although I'm not sure what the "break-even" point is. I remember when the lockout was being discussed years ago, this was a leverage point the owners were trying to use until something happened and all of a sudden they lost that - I don't remember if there was a clause about no games being played did actually cancel that out or what it was...but I remember that coming up and thought about it in regards to this. I'd be curious to see the total revenue and how that breaks down per-club and I obviously assumed that will be enough to allow them to not get totally killed by this.

 

[RobertWeathers]

The one thing I can't seem to find is the total revenue from television, which obviously will carry them through the season to compensate from the stadium revenues, although I'm not sure what the "break-even" point is. I remember when the lockout was being discussed years ago, this was a leverage point the owners were trying to use until something happened and all of a sudden they lost that - I don't remember if there was a clause about no games being played did actually cancel that out. I'd be curious to see the total revenue and how that breaks down per-club and I obviously assumed that will be enough to allow them to not get totally killed by this.

Each NFL team pulls in ~$250m/yr from the TV money.

Good article on P&L for an NFL team

How The NFL Makes Money: TV is King, Streaming and Gambling on Horizon

 

[Froob]

Boston Globe: Patriots raise debt limit $150M

 

[Ian]

Also interesting:

Prepare For Advertising Overload If NFL Season Takes Place In 2020

They quote Florio, who suggests, “At a time when sports fans will be starved for sports, will anyone complain about, for example, the placement of ads on uniforms? Or how about a green-screen decal on the helmet that becomes a rotating advertisement during close-up shots?” Florio wrote. “As the NFL tries to turn a negative into a positive, one very lucrative positive could be an opportunity to jump with both feet onto what had long been regarded a third rail for the NFL and embrace a proliferation of advertising, all in the name of replacing the revenue lost via the absence of fans.”

 

[Vatahala]

Maybe the fans should chip in and go online and order $9 dollar hot dogs direct from Gillette.

 

[tasmlab]

Each NFL team pulls in ~$250m/yr from the TV money.

Good article on P&L for an NFL team

How The NFL Makes Money: TV is King, Streaming and Gambling on Horizon

Sounds like they could scrape by on $250MM

- $198M in salary cap
- $52M for coaches, execs, security, practice facilities and staff, catering, equipment, transportation, lodging.

I'm sure I'm forgetting something, like if broadcast production costs fall on the team or the TV network. Not sure how the stadiums and related real estate are financed.

- and taxes.

Back of the napkin math for what audiences bring: $100* per seat, x 60,000 seats x 16 games per year = $96MM (less stadium staff, insurance, cops, cost of goods, how merch and concessions, etc.)

The owners would have to decide if making $0-ish money this year is worth it so the league still has value for next year and years to come to some degree.

 

[tasmlab]

Maybe the fans should chip in and go online and order $9 dollar hot dogs direct from Gillette.

Or how about $5 tap waters? Fans can send in money and then pour their own at home from the sink.

 

[signbabybrady]

 

[Clonamery]

@Dingleberry

 

[Simpelton]

Also interesting:

Prepare For Advertising Overload If NFL Season Takes Place In 2020

They quote Florio, who suggests, “At a time when sports fans will be starved for sports, will anyone complain about, for example, the placement of ads on uniforms? Or how about a green-screen decal on the helmet that becomes a rotating advertisement during close-up shots?” Florio wrote. “As the NFL tries to turn a negative into a positive, one very lucrative positive could be an opportunity to jump with both feet onto what had long been regarded a third rail for the NFL and embrace a proliferation of advertising, all in the name of replacing the revenue lost via the absence of fans.”

I could accept that if, and ONLY IF, it went away once this virus has run its course. If it's to replace gate revenue that's one thing, but it's the nature of leagues like this not to give up on revenue streams. Once they've let the genie out of the lamp, and it's generating revenue, is there any hope that this very greedy league will actually remove them?