John from Riverside Posted June 25, 2016 Share Posted June 25, 2016 My understanding was that in order to get the ROI the Pegula's needed to be in it for the long haul (which is a good thing) And.....as the team starts to win.....the team becomes more valuable? Link to comment Share on other sites More sharing options...
Mr. WEO Posted June 25, 2016 Share Posted June 25, 2016 My understanding was that in order to get the ROI the Pegula's needed to be in it for the long haul (which is a good thing) And.....as the team starts to win.....the team becomes more valuable? Winning likely won't impact the value of the team.. The biggest factor is a new stadium--witness the huge increase in value for SF and the Rams and Atlanta. Some other perennial losers increased in value simply because Pegula himself spent way over on the Bills, thus resetting the bottom of the market. Unless his is a mostly cash purchase, an owner can't get his ROI until he sells the team. Link to comment Share on other sites More sharing options...
Big Turk Posted June 25, 2016 Share Posted June 25, 2016 Roi Being the owner of the buffalo bills Yeah most owners are more interested in the prestige and being part of "the exclusive club" than the ROI Link to comment Share on other sites More sharing options...
DC Tom Posted June 25, 2016 Share Posted June 25, 2016 Winning likely won't impact the value of the team.. Of course not. It only hurts the franchise. Link to comment Share on other sites More sharing options...
hondo in seattle Posted June 26, 2016 Share Posted June 26, 2016 Yeah most owners are more interested in the prestige and being part of "the exclusive club" than the ROI Just to put this in perspective: In the restaurant business, a local restaurant will typically sell for about 2 - 3 times it's cash flow. In other words, it will take you about 2 or 3 years to earn your investment back. If the restaurant is part of an established regional or national chain, the cost will be higher: between 4 and 8 times EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). In these cases, it will take you roughly 4 to 8 years to earn your purchase price back. The Pegulas paid $1.4 billion dollars to buy a business that profits only $44 million per year. It'll take Terry & Kim approximately 32 years to make their money back. Link to comment Share on other sites More sharing options...
Mr. WEO Posted June 26, 2016 Share Posted June 26, 2016 Of course not. It only hurts the franchise. Right on cue...the non sequitur Link to comment Share on other sites More sharing options...
Kirby Jackson Posted June 26, 2016 Share Posted June 26, 2016 Winning likely won't impact the value of the team.. The biggest factor is a new stadium--witness the huge increase in value for SF and the Rams and Atlanta. Some other perennial losers increased in value simply because Pegula himself spent way over on the Bills, thus resetting the bottom of the market. Unless his is a mostly cash purchase, an owner can't get his ROI until he sells the team. Correct The other main things that will continue to bump the franchise values are growing broadcast rights and global expansion. Link to comment Share on other sites More sharing options...
Mr. WEO Posted June 26, 2016 Share Posted June 26, 2016 Correct The other main things that will continue to bump the franchise values are growing broadcast rights and global expansion. Yup, and that tide raises all these yachts equally. Link to comment Share on other sites More sharing options...
klos63 Posted June 26, 2016 Share Posted June 26, 2016 Just to put this in perspective: In the restaurant business, a local restaurant will typically sell for about 2 - 3 times it's cash flow. In other words, it will take you about 2 or 3 years to earn your investment back. If the restaurant is part of an established regional or national chain, the cost will be higher: between 4 and 8 times EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). In these cases, it will take you roughly 4 to 8 years to earn your purchase price back. The Pegulas paid $1.4 billion dollars to buy a business that profits only $44 million per year. It'll take Terry & Kim approximately 32 years to make their money back. Unless they sell the team or move it to Vegas. Moving would dramatically increase the value of the team. Link to comment Share on other sites More sharing options...
hondo in seattle Posted June 26, 2016 Share Posted June 26, 2016 Unless they sell the team or move it to Vegas. Moving would dramatically increase the value of the team. Yeah, that's the weird thing about NFL franchises. The small market teams don't actually make a lot of money. But you can turn a tidy profit when you sell the club - especially if you move it to a better market. Link to comment Share on other sites More sharing options...
What a Tuel Posted June 26, 2016 Share Posted June 26, 2016 Curious question given all the anti tax exemption talk out there on the NFL. Once they offset whatever costs they can from this $222 million, is the rest taxable under their tax return? Link to comment Share on other sites More sharing options...
PO16FFS Posted June 26, 2016 Share Posted June 26, 2016 How much is Mario making from this 222? Link to comment Share on other sites More sharing options...
machine gun kelly Posted June 26, 2016 Share Posted June 26, 2016 I can't answer that question, but the tax implications of owning a team is favorable to the owner for their overall portfolio. I'm not worried at all the Pegulas would sell the team and move it. It's more likely the Raiders move to Vegas, and the Chargers are securing their future by increasing hotel taxes for all of those corporate travelers who go there every year. The locals won't be hurt from public monies. The one point was valid in that the Pegulas love being on the exclusive club of an NFL owner, and revenues will continue to rise over the years. I hope the Pegulas make a very healthy living from the Bills and Sabres, and eventually move the team downtown so they have a mega complex. It might suck to lose the Ralph as it is tailgate heaven, but my scenario all but assures the Bills are in Buffalo forever. Link to comment Share on other sites More sharing options...
Kemp2Warlick Posted June 26, 2016 Share Posted June 26, 2016 http://profootballtalk.nbcsports.com/2016/06/26/networks-escape-sunday-ticket-class-action/ Link to comment Share on other sites More sharing options...
Hammered a Lot Posted June 26, 2016 Share Posted June 26, 2016 Not to mention the impending stadium dough that will be required in the next 5 years. Renovation dough Link to comment Share on other sites More sharing options...
SRQ_BillsFan Posted June 26, 2016 Share Posted June 26, 2016 (edited) Not that it would be a popular idea, but I keep wondering if the Bills simply raised ticket prices 25-30% ( which would most likely be less than people would pay in a new stadium, especially with PSL's) would the NFL decide that the recent renovations would be enough? I'm in the I don't get it camp, sure a new stadium would be nice, but I don't have an issue with the Ralph. I've been to other new stadiums and sure they are nice, but they have not changed my game experience. I went to OSU and that stadium was fine as well and almost 100 years old. Why make people pay for a stadium the area can't afford. Edited June 26, 2016 by SRQ_BillsFan Link to comment Share on other sites More sharing options...
Kirby Jackson Posted June 26, 2016 Share Posted June 26, 2016 Not that it would be a popular idea, but I keep wondering if the Bills simply raised ticket prices 25-30% ( which would most likely be less than people would pay in a new stadium, especially with PSL's) would the NFL decide that the recent renovations would be enough? I'm in the I don't get it camp, sure a new stadium would be nice, but I don't have an issue with the Ralph. I've been to other new stadiums and sure they are nice, but they have not changed my game experience. I went to OSU and that stadium was fine as well and almost 100 years old. Why make people pay for a stadium the area can't afford. It has nothing to do with game experience. The Bills game experience is top notch. It's about alternative revenue sources. They are trying to get more nonshared revenue. Link to comment Share on other sites More sharing options...
machine gun kelly Posted June 26, 2016 Share Posted June 26, 2016 The funny thing is more of the newer stadiums are around 65,000 seats with the exception of Dallas. With that said, overly simplistic math but there are an additional 8000 seats in Buffalo, and at an avg (rounding up due to parking, etc.) is at least $100 a person. It may not be a ton, but that's an additional $800,000 a game times 8 of we sold out so a potential $6.4 mil/year. Why get a newer stadium, when a good team with a playoff history moving forward would get that stadium sold out every week? anyway, we're not in that bad of a situation. The Pegulas comments make it seem like they are not in a rush to build a new stadium. I actually don't mind Goodell, but in this situation "Go pound salt" as my dad likes to say. Link to comment Share on other sites More sharing options...
SRQ_BillsFan Posted June 26, 2016 Share Posted June 26, 2016 (edited) The only issue, as has been pointed out, the longer they wait the more it costs. But good point about the additional seats that they may have today vs a new stadium. Given that it's surprising we are so low league wide for revenue. How can people afford some of these season tickets at other stadiums. I'm guessing the box prices differ quite a bit. But I don't think those are shared. Edited June 26, 2016 by SRQ_BillsFan Link to comment Share on other sites More sharing options...
What a Tuel Posted June 26, 2016 Share Posted June 26, 2016 (edited) The extra seats is a point but the extra price they charge for seats in the new stadium would dwarf that. Even if you just increase ticket prices by 25% you are talking an 65,000 seats at an extra $25 a game you are talking $1,625,000 a game or $13,000,000 million a season. The increase and PSL's will likely be much more than that. I mean you can throw in the cost of the new stadium, but eventually they will break even and be better for it. Especially with selling stadium name rights, nfl funding, public funding. Edited June 26, 2016 by What a Tuel Link to comment Share on other sites More sharing options...
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