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Old 07-22-2010, 01:08 PM   #10
Mojo Jojo Mojo Jojo is offline
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Join Date: Jun 2005
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Quote:
Originally Posted by alpha_omega View Post
Any idea how the values are determined?
It is a best guess by Forbes.
First they estimate revenue...some numbers are solid (national broadcast contracts) then they estimate ticket revenues, parking, concessions, sponsorships, local broadcasting etc. No team ever releases those actual numbers, so it is a best guess.

Then expenses...money paid for leases, operating and capitol expenses, salaries on the field and off. If you own your stadium like the Redskins you take on all stadium expenses, if you are just a part time tenant like the Jaguars you just pay the city a flat fee and they pick up most of the operating & capitol expenses. If you have a great lease like the Chiefs the team pays the county/city and many times will get a lot of that money back as a management fee, and the city/county will pick up some or all the capitol expenses.

Now you factor in money to be made from other events if you own/manage the venue. The Redskins, Chiefs, Cowboys keep almost all the money generated by soccer games, concerts, special events and whatever.

If you own and/or manage your venue you will have higher expenses, but you get to keep all the revenue from naming rights, signage parking etc. Teams like the Rams and Jaguars have to share those revenues with the stadium/city, and they don't get much of the parking revenue.

Finally...name recognition...the ability to sell your product/merchandise to large masses. This is a big reason so many soccer teams rank high. In the case of the NFL except for local broadcast all these revenues are shared, so the Cowboys, Redskins, Patriots, Giants are pulling others along.

As I said in the beginning it is just a best guess.
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