Cash to cap and ticket prices

[joey greco]

I'm no cap or CBA expert, so I'm lookin for some clarification.

 

Cash to cap-has nothing, or something to do with ticket prices?

 

I've seen a lot of people say they have no problem with the ticket price increase if it means an improved product, but my understanding is that ticket prices have nothing to do with cash-to-cap budgeting, and the money paid for talent will not change whether the ticket price is 1.00 per seat or 1 million per seat. Is that correct?

[Estro]

I'm no cap or CBA expert, so I'm lookin for some clarification.

 

Cash to cap-has nothing, or something to do with ticket prices?

 

I've seen a lot of people say they have no problem with the ticket price increase if it means an improved product, but my understanding is that ticket prices have nothing to do with cash-to-cap budgeting, and the money paid for talent will not change whether the ticket price is 1.00 per seat or 1 million per seat. Is that correct?

 

 

Cash to cap has nothing to do with the money made from ticket sales, but has everything to do with the league salary cap. It is peoples belief though, that if Ralph charged more for tickets and people paid the increased prices, that maybe he'd be more willing to spend a bit more on players/coaches.

 

Put it this way: If Ralph charged an additional $10 per ticket per game you're looking at an additional revenue of $700,000/game. Multiply that by 8 home games and you're looking at an additional revenue stream of $5.6 million. If Ralph were to spend this additional "profit" to improve the roster (players/coaches/front office guys), that's a huge if, that would be an extra $5 + million he could use without making any less of a profit than he's currently making. The more likely scenario from a businessman like Ralph would be to pocket half of the increased profit and maybe spend the other half on improving the roster and coaches, which would still amount to $2.8 million.

 

BTW, with the increase in ticket prices (which are still one of, if not the best deal in all of sports) Ralph will be making an additional $8/seat/game this upcoming season. To put that into perspective it means an additional $4.5 million in revenue through ticket sales assuming every game sells out. The kicker is that the salary cap is also ever increasing so the increase in ticket prices may just go to offset the increasing players salaries year over year.

[spartacus]

Cash to cap has nothing to do with the money made from ticket sales, but has everything to do with the league salary cap. It is peoples belief though, that if Ralph charged more for tickets and people paid the increased prices, that maybe he'd be more willing to spend a bit more on players/coaches.

 

Put it this way: If Ralph charged an additional $10 per ticket per game you're looking at an additional revenue of $700,000/game. Multiply that by 8 home games and you're looking at an additional revenue stream of $5.6 million. If Ralph were to spend this additional "profit" to improve the roster (players/coaches/front office guys), that's a huge if, that would be an extra $5 + million he could use without making any less of a profit than he's currently making. The more likely scenario from a businessman like Ralph would be to pocket half of the increased profit and maybe spend the other half on improving the roster and coaches, which would still amount to $2.8 million.

 

BTW, with the increase in ticket prices (which are still one of, if not the best deal in all of sports) Ralph will be making an additional $8/seat/game this upcoming season. To put that into perspective it means an additional $4.5 million in revenue through ticket sales assuming every game sells out. The kicker is that the salary cap is also ever increasing so the increase in ticket prices may just go to offset the increasing players salaries year over year.

 

unfortunately, your agrument falls apart when it gets to the increasing salary cap.

there is no cap in 2010 and no minimum either.

 

Expect Ralph to pocket the extra $5 mil in revenue and an additional $50 million as he cuts payroll from the cap mandated amount of about $125 million in 2009 to something less than $75 million in 2010. Ralph will be stockpiling a war chest for the lockout to come in 2011. No sense in committing big bucks to players who won't be generating revenue for him in 2011.

 

Gailey will be "teaching" a team full of young, cheap (and not very good) draft picks and scrubs in 2010.

[ntjacks79]

I'm no cap or CBA expert, so I'm lookin for some clarification.

 

Cash to cap-has nothing, or something to do with ticket prices?

 

I've seen a lot of people say they have no problem with the ticket price increase if it means an improved product, but my understanding is that ticket prices have nothing to do with cash-to-cap budgeting, and the money paid for talent will not change whether the ticket price is 1.00 per seat or 1 million per seat. Is that correct?

My two cents to make it simple... "Cash to Cap" was the Bills policy in the past whereby they imposed greater restrictions on themselves than was necessary with the salary cap (and versus what other teams spend). This was done because the Bills are a smaller market team and don't generate the revenue, so therefore couldn't well operate their business spending what other teams do. So, theoretically, if the Bills raised ticket prices it's possible they could spend over the cap on a cash basis (still within the cap because of deferred money) and make themselves more competitive. But it would be completely up to them, and how they want to run their business.