Chiefs losing money?

[KingPriest2]

http://sportsillustrated.cnn.com/201....ap/index.html

Bisciotti: NFL teams struggling Story Highlights
Steve Bisciotti hinted the NFL could shut down in 2011 without union concessions
Bisciotti insisted many of the 32 NFL teams are struggling to finish in the black


OWINGS MILLS, Md. (AP) -- Baltimore Ravens owner Steve Bisciotti said Wednesday that several NFL owners are facing a financial shortfall that could create "long-term problems for the league" and ultimately result in a lockout.

As the Ravens prepare for a 2010 season without a salary cap, Bisciotti hinted the NFL could shut down in March 2011 if concessions aren't made by the players union in negotiations for a new collective bargaining agreement.

Speaking at a news conference in which team officials looked back at last season and ahead to 2010, Bisciotti insisted many of the 32 NFL teams are struggling to finish in the black.

"I've got partners out there right now whose teams are making less money than their linebackers. I think we've got an acute problem here with the general profitability of the teams," Bisciotti said. "We always knew this was not a big cash-flow business, but when you've got guys like Jacksonville tarping up 10,000 seats to stop blackouts, when you've got teams that are voluntarily staying at the minimum of what they have to spend on the salary cap in order to not go upside down financially, then we already have a structural problem."
Three years ago, the owners and players union signed a CBA that Bisciotti labeled "a bad deal" for the owners.

"That puts us in the unenviable position of this thing ending in a lockout as opposed to a strike," he said. "There's no cash flow. If we don't get this thing back to the point that teams have enough cash flow ... then there's long-term problem for the league. We're going to have to address that."

Ravens president Dick Cass said the club is "doing well compared to other teams around the league. But just because we're still doing well in revenues, that doesn't mean we're generating a lot of profit."

Although there's a good chance there will not be a salary cap in place in 2010, that doesn't mean a team will be allowed to spend at will. And even by spending the maximum, that won't guarantee a spot in the playoffs.

Using baseball's New York Yankees as an example, Bisciotti wondered aloud about the payoff on an unbridled spending spree.

"It certainly doesn't show up in the standings," he said. "If I'm a Yankees fan, I'm upset we're not winning 130 games with the roster that they have and the money that they pay out. I think it's a disgrace they only beat the average team by 10 games in the standings with three times the money. I'd fire that GM. You don't need a GM. All you have to do is buy the last Cy Young Award winner every year."

Bisciotti, 49, has been the Ravens' owner for 10 years, during which the team has regularly sold out its home games. Despite that he still has concern about the future of the league.

"We want to be at a point where teams are not selling off their star players in their fourth year because they can't afford to sign them to that second contract," Bisciotti said.

As the Ravens enter an offseason with an uncertain financial environment and no salary cap, general manager Ozzie Newsome is eager to work within the system to enhance their wide receivers and fortify their pass rush.

"The restrictions put on the Baltimore Ravens are put on 31 other ballclubs, too," Newsome said. "We've got to be better than the other 31 clubs in order to make our football team under these circumstances. I look at it as a challenge. It puts the pressure on us to dig down deep to improve our football team."

The Ravens went 9-7 this season and reached the second round of the playoffs before being eliminated by Indianapolis. Bisciotti said the improvement of second-year quarterback Joe Flacco will be the key to success in 2011.

Flacco's ability to excel could be helped by new quarterbacks coach Jim Zorn -- and the addition of a few new targets.

"Do we want to improve at the wide receiver position? Yes, because that will further enhance our running game," Newsome said. "Having a playmaker on the outside will make Joe Flacco become a better quarterback."

[OnTheWarpath15]

DeMaurice Smith just said in his PC that the the Packers (who are publicly held, so the books are available, apparently) cleared a profit of $20M in 2008, which was a losing season, without Brett Favre.

They were 27th in payroll at $94M. The Salary Cap was $116M. Do the math.

That's not a huge profit, IMO, and I can see where teams could be losing money.

[kcxiv]

If i lived in an area where i would be able to watch all the Chiefs game's, i would NOT have Sunday Ticket, but i would be damned if i gotta watch the NIners and the Raiders everyweek. So i dont mind pay per viewing so i dont have to watch them 2 ****ing teams i despise.

[2bikemike]

Originally Posted by kcxiv

If i lived in an area where i would be able to watch all the Chiefs game's, i would NOT have Sunday Ticket, but i would be damned if i gotta watch the NIners and the Raiders everyweek. So i dont mind pay per viewing so i dont have to watch them 2 ****ing teams i despise.

Yeah I ain't forkin out the dough for Sunday Ticket, too damn costly. I also work rotating shift work so I'm not free to sit around and watch football all day sunday.

I would however pay a small fee to watch a Chiefs game when I am home on Sundays. This would happen roughly 6 games a year.

[Renegade]

There is only one team in all of NFL that reported a negative profit, and that was the Faiders. The Chiefs rank in the top 1/2 of the league in operating profit. This link is very helpful. Don't be fooled by the propoganda going on. This is like a boxing match, the first couple of rounds are just jabs to the opponent.

http://www.forbes.com/2009/09/02/nfl...-nfl_land.html

[KCbroncoHATER]

I was going to post that.

The chefs had a operating income of 52 million.

http://www.forbes.com/lists/2009/30/...fs_309072.html

[rtmike]

Originally Posted by 2bikemike

Yeah I ain't forkin out the dough for Sunday Ticket, too damn costly. I also work rotating shift work so I'm not free to sit around and watch football all day sunday.

I would however pay a small fee to watch a Chiefs game when I am home on Sundays. This would happen roughly 6 games a year.

I would much rather pay less & only get the Chiefs games'.

We're close enough up here to get the other AFC West teams on cable. Those are the only other teams I really keep up with.

[ChiefsCountry]

I bet the Chiefs bring in about 65 million in ticket sales and 10 million in sponsorships.

[morphius]

I believe earlier in the season Jerry Jones said that he thought it was unfair for teams like the Chiefs to help subsidize other teams, so I would assume that we were making money.

[DaFace]

Originally Posted by Renegade

There is only one team in all of NFL that reported a negative profit, and that was the Faiders. The Chiefs rank in the top 1/2 of the league in operating profit. This link is very helpful. Don't be fooled by the propoganda going on. This is like a boxing match, the first couple of rounds are just jabs to the opponent.

http://www.forbes.com/2009/09/02/nfl...-nfl_land.html

Originally Posted by KCbroncoHATER

I was going to post that.

The chefs had a operating income of 52 million.

http://www.forbes.com/lists/2009/30/...fs_309072.html

Technically, that's all a year old. Not saying that the Chiefs were in the hole this year necessarily, but it's not inconceivable that their revenues were much lower this year than last.

[Marcellus]

Originally Posted by KCbroncoHATER

I was going to post that.

The chefs had a operating income of 52 million.

http://www.forbes.com/lists/2009/30/...fs_309072.html

Remember that number is before taxes, interest, depreciation etc...now I have no idea how much that would take from the $52MM you can bet the profit was not near $52MM and probably near half to 2/3rds. (not sure what would depreciate but the taxes would have to be pretty high)

Take what they didn't spend on payroll and there you go. Not saying they are going broke but say they maxed out the salary cap they likely would have lost $.

[Mecca]

Originally Posted by googlegoogle

Never understood why players get a percent of anything when owners take all the risk.

Really, I never understood why the majority of fans side with the owners who are basically a bunch of old rich billionaires turning big profits.

[Hammock Parties]

Clark Hunt's not cheap, he's just broke.

[Renegade]

The thing I found interesting was that Lamar bought the Chiefs for $25,000 and the franchise is now worth $1 Billion (no not eleventy billion). That is nice ROI.