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03-21-2005, 09:36 PM
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Draft Defense Early&Often
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NFL to have revenue tax for the very rich
KAPALUA, Hawaii -- Significant problems are few and far between in the NFL these days, but that didn't stop commissioner Paul Tagliabue from opening the league's annual meeting on Monday in messaging-sending mode with a dire assessment of the NFL's stagnant collective bargaining agreement talks.
With sunny skies and Maui's spectacular weather mirroring the overall ever-rosier financial picture that the league still finds itself in, Tagliabue stood up before league owners and club officials and told them that negotiations on an extension of the CBA have "exhausted themselves'' and "are at a dead end.'' Rhetoric? Sure it was -- since when have labor negotiations ever scrimped on the rhetoric stage? And by anyone's standards, it's hard to feel a sense of urgency regarding the CBA talks when the current agreement doesn't even expire until after the 2007 season. Still, to underline the league's increased focus on its labor situation, Tagliabue also scheduled a tentative special league meeting on April 19, to resume negotiations on a CBA extension. "If we can make progress with the players association, we'll have a meeting,'' Tagliabue said, dismissively. "If we don't, we won't.'' Make no mistake, Tagliabue chose his words carefully on Monday, hoping his ominous undertones will help both sides close the substantial gap that now exists between how much the players want to see the salary pool revenues increase, and how much some of the owners are willing to give after they account for the expensive debt service that goes with all the league's newer stadiums. But before the league really faces off against the players in this round of labor talks, the really interesting battling is going on within the league, where owners from five or six high-revenue teams are fighting against the idea of a league-issued revenue tax, thereby diverting more of their hard-earned ancillary income to the low-revenue teams around the NFL. Socialism has long been the way of the NFL, thanks to decades of successful revenue sharing, but this latest skirmish will again test the league's commitment to all for one and one for all. It's not yet time to think of this issue as Tagliabue squaring off with NFLPA executive director Eugene Upshaw. The more pressing matchup pits high-revenue owners such as Daniel Snyder of Washington, Jerry Jones of Dallas and Bob McNair of Houston, Bob Kraft of New England and Jeffrey Lurie of Philadelphia against their fellow, lower-revenue owners. "The union's asking for a lot of money, and that's typical,'' said Pittsburgh's old-school (and low-revenue) owner Dan Rooney. "But we can't even get to that because of where we are [internally in the league]. I don't know if it's a question of a [revenue] tax. We're just trying to equal it out. The clock is ticking. Maybe they'll get brains soon.'' The "they'' in that sentence refers not to the players and their union, but to the capitalistic gang led by Jones and Snyder, who want to keep as much of their additional stadium and advertising related revenue sources as possible. Though Tagliabue later refuted that the owner versus owner struggle in regards to the structure of the league's revenue-sharing system is the primary issue that now hinders a CBA extension, he seemed pretty much alone in that opinion here Monday. "Some of the lower revenue clubs do need help because they've been impacted,'' Houston's McNair said. "But at the same time you can't take incentive away from the clubs that have generated the growth and revenue, or the growth and revenue won't be there. You have to factor the stadium debt service into the equation, because people went out and built new stadiums and invested a lot of money to generate more revenue, and they need that revenue to pay off the stadium. "If you come back in and change the model and take too much away from them, then they don't have enough money to service the debut. You've got people, just like ourselves, who paid big money for the franchise based on the existing model. If you change that model, all of sudden you're taking away the value you've paid for. Those factors have to be addressed.'' According to Tagliabue, the debt service on the new stadiums around the league accounts for between three and four percent of the NFL's total revenues of $6 billion. That may be a small slice, but that's still, as Tagliabue put it, "a lot of money.'' How to factor that dollar figure into a new CBA agreement is going to be the tricky part. "That's a cost we've never had before,'' Tagliabue said. "Since we first did this CBA in 1992-93, teams have really had to spend dramatically more sums of private money to get stadiums built. So in a sense, the collective bargaining negotiation today is not how you divide 100 points, it's how you divide 96 or 95 points. Because three or four or five points already are going to the banks and construction companies for the new stadium. ... I'm not sure we have division [among owners]. What we have is a complicated set of new economic issues and we're trying to figure out how to resolve them.'' Tagliabue isn't very convincing when he insists there's no division among owners. Because that division, between the haves and the have-mores, is very real. But at some point, the league's owners, as they have always managed to do, are going to have close ranks and put their best possible proposal before the players union. "Internally, we need to know what we think is in the best long-term interest of the league,'' McNair said. "That's what we have to do now. And then try to convince the players association that that's the right path for them, too.'' Don't look for any major steps along the way to a CBA extension to come out of this week's annual meeting in Maui. When big money is involved, the NFL moves as cautiously as a first-day bank teller. But Tagliabue threw out his tough talk for a very particular reason. He's hoping his "dead end'' pronouncement will wind up kick starting the process that leads to a new agreement, and another era of labor peace. With a new CBA in place, the NFL's days of fair weather might just extend indefinitely. |
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03-21-2005, 09:38 PM
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#2 |
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Draft Defense Early&Often
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I don't think this would affect Denver since the Broncos are middle of the road as far as revenue but it would have a huge affect on the Cowboys and Redskins.
Who thought that Snyder and Jones could unite on a topic? |
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03-21-2005, 10:01 PM
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Ring of Famer
Join Date: May 2001
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Denver's a high revenue team, usually 5th or 6th every year. Wonder what Bowlen thinks of this?
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03-21-2005, 10:04 PM
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Nixonite
Join Date: Aug 2001
Location: Arcadia, CA
Posts: 33,305
Adopt-a-Bronco: D.J. Williams |
hell no. take money out of our pocket and put it in greasy al's pocket. If he wants to be a high revenue team than get a real stadium. hey herc, doesnt there need to be 2/3 approval for something like this?
__________________
ITS A PLAYOFF HOCKEY NIGHT IN PITTSBURGH! |
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03-21-2005, 10:06 PM
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Persona Non Grata
Join Date: Jan 2003
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I hate the idea of teams that generate revenue and invest it in improving their team being forced to fork over money to cheap owners who'll put it directly in their own pocket.
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03-21-2005, 10:09 PM
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24/7 Broncos
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Adopt-a-Bronco: Peyton Manning |
I disagree with the tax. It gives owners excuses to be complacent and let the smaller market teams coast...
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03-21-2005, 10:09 PM
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#7 | |
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03-21-2005, 10:14 PM
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#8 | |
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Nixonite
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__________________
ITS A PLAYOFF HOCKEY NIGHT IN PITTSBURGH! |
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03-21-2005, 10:18 PM
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#9 |
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Ring of Famer
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Look at it this way: Bowlen is clearly going to spend money, and if this gives other owners incentives not to compete, well that's less competition for the Broncos
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03-21-2005, 10:20 PM
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Yes...swooping is bad...
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Adopt-a-Bronco: All of them. |
i read something once that said the Broncos were the NFL's 6th most valuable franchise. Not bad.
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03-21-2005, 11:03 PM
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03-21-2005, 11:17 PM
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03-21-2005, 11:20 PM
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03-21-2005, 11:27 PM
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#14 |
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Ring of Famer
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That order was from a year or two ago, I could see Cleveland dropping behind Dnever but that's really it. If you have a lot of time on your hands, go through Pasquerelli's archived articles. He had an article during the season that talked about there being no cap for the last year of the CBA and owners were complaining that the Cowboys, Skins and Broncos, among others, would have an unfair advantage because they were the high revenue teams in the league, or something to that effect. But I do remember Denver being specifically mentioned in there as one of the larger revenued teams.
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03-21-2005, 11:40 PM
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03-22-2005, 03:06 AM
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#16 | |
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6-37, Raider fans.
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The business of football NFL is world's most valuable, profitable team sport Washington Redskins vs. Carolina Panthers Greg Fiume / Getty Images file The Washington Redskins are the most valuable NFL team in 2004. By Michael K. Ozanian Updated: 2:39 p.m. ET Sept. 3, 2004 The National Football League is the most valuable and profitable team sport in the world. This year the average team is worth $733 million, a 17 percent increase over last year. Operating income (earnings before interest, taxes, depreciation and amortization) for the 32 teams came in at $851 million on revenue of $5.3 billion, an operating margin of 16 percent. advertisement Baseball teams come the closest in valuations to football, with an average value of $295 million. When we last looked at the National Basketball Association, the second most profitable sport, the league's operating margin was only 6.5 percent. 2004 NFL team values To see Forbes.com's full breakdown of team valuations, click here. Rank Team Value (millions) 1. Washington Redskins $1,104 2. Dallas Cowboys $923 3. Houston Texans $905 4. New England Patriots $861 5. Philadelphia Eagles $833 6. Denver Broncos $815 7. Cleveland Browns $798 8. Chicago Bears $785 9. Tampa Bay Buccaneers $779 10. Baltimore Ravens $776 11. Miami Dolphins $765 12. Carolina Panthers $760 13. Green Bay Packers $756 14. Detroit Lions $747 15. Tennessee Titans $736 16. Pittsburgh Steelers $717 17. Seattle Seahawks $712 18. Kansas City Chiefs $709 19. St Louis Rams $708 20. New York Giants $692 21. Jacksonville Jaguars $688 22. New York Jets $685 23. Cincinnati Bengals $675 24. Buffalo Bills $637 25. San Francisco 49ers $636 26. New Orleans Saints $627 27. Oakland Raiders $624 28. San Diego Chargers $622 29. Indianapolis Colts $609 30. Minnesota Vikings $604 31. Atlanta Falcons $603 32. Arizona Cardinals $552 Source: Forbes.com • Print this The league's national television contract ($17.6 billion over eight years) is responsible for the NFL's rich team valuations, and a cap on player salaries of no more than 65 percent of specified revenue explains the fat margin. But the pecking order of team values and profits is determined by stadium economics. The eight most valuable teams control or own their stadiums and are therefore able to rake in millions of dollars in corporate sponsorships and advertising from the likes of American Express, FedEx, Gillette and PepsiCo. The nine teams with the lowest valuations play in antiquated stadiums that are controlled by municipalities. More on NFL • Expert: Raiders, Cowboys most improved • Goldberg: Buy young, or go for it all • Williamson: Moss a perfect Raider • Celizic: Bledsoe could doom Dallas • More coverage In 1993 the price of an expansion team in the NFL was $200 million ($222 million in 1999 dollars). In 1999, the last time the league expanded, the Houston Texans went for $700 million. Don't look for football franchise values to stop climbing any time soon. Taxpayers in most cities pony up to finance new stadiums for billionaire owners. Also, the league is one of the few monopolies permitted in the U.S. and its weak union allows for owners, not the marketplace, to set their salaries. Great business, football. © 2005 Forbes.com Your Welcome  Also, its no wonder they are having a problem. Good luck trying to get Jerry Jones' money. Last edited by Kaylore; 03-22-2005 at 03:09 AM.. |
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03-22-2005, 03:08 AM
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#17 |
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6-37, Raider fans.
Join Date: Aug 2004
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Adopt-a-Bronco: Wesley Duke |
How's the basement Raiders, and Chargers?
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03-22-2005, 09:14 AM
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#18 | |
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Draft Defense Early&Often
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Rep for doing the footwork!! That is a list of the values of each team. I imagine that the list of revenue earned for the 2004 season might look a little different. There might be teams that made more money than a team but maybe the other team is valued ata higher price due to fan base/ stadium deal/ organizatin stability... ect.... Last edited by Atlas; 03-22-2005 at 09:19 AM.. |
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03-22-2005, 04:24 PM
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#19 | |
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6-37, Raider fans.
Join Date: Aug 2004
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