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AAF needed $250m emergency investment to make payroll


Alphadawg7

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8 hours ago, RoyBatty is alive said:

Another headline grabbing wild exaggeration.  *8 teams, 52 players, $250k piece over THREE YEARS,  that is $104 million and they needed $250 million over a few days?. Even double the number for coaches, AAF personnel, refs,etc, $250 mil in emergency cash infusion laughable exaggeration.

 

Payroll could’ve down the line of a number of other expenses. 

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2 hours ago, K-GunJimKelly12 said:

XFL needs to become an alternative to college where 18-23 year olds get paid for playing football.  That could be hugely successful if done right.

 

2 hours ago, row_33 said:

 

is there that much interest out there to make it profitable?

 

 

 

2 hours ago, Alphadawg7 said:

 

Thats interesting, although I am not sure they are going that route, but also I have not been following it as closely this second time around.  

 

In other words, instead of trying to go up against the NFL they go against College...hmmm.  Although I would expect the NFL would side with College football and make this direction also a very difficult coup to pull off with the XFL. 

It has NO CHANCE of competing with college football.  No one grew up a Birmingham Iron’s fan but they will kill a man who says “War Eagle.” For some realistic perspective there was a better chance of the Buffalo Destroyers replacing the Bills than there is the Iron’s replacing Alabama.

 

Big 10 schools get $51M each, every year, from their media deal. That is just the media deal!! How is some XFL or AAF team ever going to recruit a kid that has an offer from OSU, Clemson, Alabama, ND, etc?!? It is never, ever, ever, ever, ever, ever, ever, ever, ever going to happen. These leagues aren’t competition. They NEVER will compete with the Power 5 conferences or the NFL. 

Edited by Kirby Jackson
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7 minutes ago, Kirby Jackson said:

 

 

It has NO CHANCE of competing with college football.  No one grew up a Birmingham Iron’s fan but they will kill a man who says “War Eagle.”

 

Big 10 schools get $51M each, every year, from their media deal. That is just the media deal!! How is some XFL or AAF team ever going to recruit a kid that has an offer from OSU, Clemson, Alabama, ND, etc?!? It is never, ever, ever, ever, ever, ever, ever, ever, ever going to happen. These leagues aren’t competition. They NEVER will compete with the Power 5 conferences or the NFL. 

 

So............maybe???

 

The thing they might have going for them is a spring option for football in a football obsessed country. BUT, the NFL has managed to own the spring as well, between Free Agency, the combine and the draft. The NFL is a 12 month sport now. 

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11 minutes ago, Kirby Jackson said:

 

 

It has NO CHANCE of competing with college football.  No one grew up a Birmingham Iron’s fan but they will kill a man who says “War Eagle.” For some realistic perspective there was a better chance of the Buffalo Destroyers replacing the Bills than there is the Iron’s replacing Alabama.

 

Big 10 schools get $51M each, every year, from their media deal. That is just the media deal!! How is some XFL or AAF team ever going to recruit a kid that has an offer from OSU, Clemson, Alabama, ND, etc?!? It is never, ever, ever, ever, ever, ever, ever, ever, ever going to happen. These leagues aren’t competition. They NEVER will compete with the Power 5 conferences or the NFL. 

 

I agree with you...just said that is interesting thought.  But not only will College Football have an insane amount of money to prevent that, the NFL will certainly back College ball too with all its resources.

 

Like I said earlier, XFL should just fold now and save the money as they won't last again.  

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9 hours ago, RoyBatty is alive said:

Certainly but they also have revenue TV, ticket sales, concessions, paraphernalia, etc, the number $250 million doesn't work.

 

 

There is no TV revenue.

6 hours ago, C.Biscuit97 said:

Yeah, every football league is going to struggle.  Their best is to link up with the nfl as a minor league.  As awful as Goodell is, the nfl prints money. 

 

 

And this is why the NFL won't bite on a doomed money loser.

 

If a "minor league" ever made financial sense, the NFL would have created one decades ago.  

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36 minutes ago, Mr. WEO said:

 

 

There is no TV revenue.

 

 

And this is why the NFL won't bite on a doomed money loser.

 

If a "minor league" ever made financial sense, the NFL would have created one decades ago.  

Exactly!! They don’t need to invest. They get it for free and it may be the 2nd biggest sport in the country. The NFL isn’t in the business of lighting money on fire.

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11 hours ago, RoyBatty is alive said:

 

 

Yes i could expand this discussion and yes I didn't list every possible expense item, not did i list every possible revenue generator. If three weeks into the season they needed "$250 million to make payroll" then they are the most inept businessman I have ever seen.  Makes zero sense.

 

And yes a lot of money has already been spend, they started with alot of money, you thin they went through it all in three weeks?  Laughable.

 

And i dont know for a fact is they made money on TV, you cite reason why they didn't, i will only  say football, even bad football,  is a hell of a lot more popular in the US than soccer or Rugby.

 

Borderline impossible, that is my entire point.

 

You seem to be shooting from the hip a lot. How do you know they started with a lot of money?

 

Why would anyone involved, including the future chairman of the league allow knowledge of a 250 million dollar investment? It's not a good look at all. 

 

This story has been on espn.com, bleacher report, si.com, ny daily news for a business day now and they haven't refuted it.

 

Odds are you're the one who is wrong.

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13 hours ago, RoyBatty is alive said:

I dont care about any disrespect, you and i disagree.  You clearly have more experiences starting up leagues, never been involved and never put any money into them, they are for people with big egos imo, money pits. But i am painfully aware of startups and the hidden costs put a $250 mil cash infusion to meet payroll after 2-3 weeks is absurd, that is my only point.   

 

And as for Soccer-rugby-football popularity,  confusing world popularity  vs US.  Good luck getting a TV contract for second rate US rugby league.  And yes soccer is popular in the US.  But all the soccer fans I know watch Premier League,  Bundes, etc, they watch the world class soccer, not the third rate MLS.

 

AAF viewership has been very strong.

 

Good luck getting a TV contract?  

 

You mean like the TV contract Major League Rugby already has with CBS Sports, ESPN+, and ATT since it’s inaugural season?  

 

Or do you mean good luck with all the other networks who are already preparing to submit multi-million dollar bids for the broadcast rights that come available again this summer?

 

Third rate MLS?  You mean the same MLS league that’s a multi billion dollar corporation?  The same MLS whose average team value was $20m just fifteen years ago and now average team value is around $250m value?  The same MLS with big revenue TV deals?

 

Maybe stick to chastising things you are more familiar with ;) 

 

I mean it’s all good to not be as familiar with these sports or leagues, or not agree.  But I don’t really see the point in just making meritless claims about something you don’t really know a lot about. 

Edited by Alphadawg7
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13 hours ago, Mark80 said:

 

He bought ownership into the league with that $250M.  Its not the amount used to pay for payroll.  Its a cash infusion.  Potentially missing payroll may have prompted the search for additional funding, but it has nothing to do with what that figure of $250M represents.  Its just the number they negotiated for whatever % ownership in the league he gets.

 

Generally, the league pays the actual payroll.  Contracts are negotiated by the teams, but the league is actually who employs the player directly and pays their paychecks.  Players are assigned to their teams but employed by the league, not the team.  So that’s why the article and the quote from the league talked about player paychecks that could have been delayed.  So this $250m very much impacted players pay checks.

 

Teams have an annual cash call that includes player salaries and any additional capital the league needs to operate for the season if it’s not yet profitable which AAF of course is not and likely won’t be for first 3-5 seasons.

 

The question is why was there a fiscal issue this early in the first season.  Wonder if they had some expected incoming capital fall out or if it was more of a cash flow issue.   

Edited by Alphadawg7
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12 hours ago, Kirby Jackson said:

 

 

It has NO CHANCE of competing with college football.  No one grew up a Birmingham Iron’s fan but they will kill a man who says “War Eagle.” For some realistic perspective there was a better chance of the Buffalo Destroyers replacing the Bills than there is the Iron’s replacing Alabama.

 

Big 10 schools get $51M each, every year, from their media deal. That is just the media deal!! How is some XFL or AAF team ever going to recruit a kid that has an offer from OSU, Clemson, Alabama, ND, etc?!? It is never, ever, ever, ever, ever, ever, ever, ever, ever going to happen. These leagues aren’t competition. They NEVER will compete with the Power 5 conferences or the NFL. 

 

That might matter if they were playing in the fall. But they play in winter when there is no football, and there are players from those beloved college teams on their rosters. That was the idea. To keep playing and maybe get another shot at the pros.

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49 minutes ago, PromoTheRobot said:

 

That might matter if they were playing in the fall. But they play in winter when there is no football, and there are players from those beloved college teams on their rosters. That was the idea. To keep playing and maybe get another shot at the pros.

Yeah, they took players that weren’t good enough from those schools. Someone suggested that they may recruit the top guys like Don Yee’s league is trying to.  It just isn’t going to happen. This league is another low end attempt to tap into football’s popularity. They try it every few years and it fails always. They are looking for a cash call a week in. Why should we believe that this league will be any different? 

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4 minutes ago, Kirby Jackson said:

Yeah, they took players that weren’t good enough from those schools. Someone suggested that they may recruit the top guys like Don Yee’s league is trying to.  It just isn’t going to happen. This league is another low end attempt to tap into football’s popularity. They try it every few years and it fails always. They are looking for a cash call a week in. Why should we believe that this league will be any different? 

 

I guess because they have games on real TV networks, including NFL Network. That tells me the NFL at least favors them, if they aren't financially involved.

 

I still think it's weird that they needed extra cash 2 weeks in. What was the business plan? What went sideways after just two weeks?

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21 hours ago, RoyBatty is alive said:

 

 

 

 

And i dont know for a fact is they made money on TV, you cite reason why they didn't, i will only  say football, even bad football,  is a hell of a lot more popular in the US than soccer or Rugby.

 

 .

 

There is no TV money because each network that is broadcasting games isn't paying the AAF to do so.

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23 hours ago, Alphadawg7 said:

Wow, the AAF has had a successful launch, yet they just faced a major financial crisis that needed a $250 million dollar investment to just make payroll. I do think this league will be successful, but just goes to show just how immense it is to both start a new league and then operate it.  Another reason why I think XFL will fail after one season again.

 

https://bleacherreport.com/articles/2821459-report-aaf-needed-250-million-emergency-investment-to-be-able-to-make-payroll

 

I would have thought the TV contracts would have covered that at least ?? They must be on a prove it deal !! 

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18 minutes ago, Mr. WEO said:

 

There is no TV money because each network that is broadcasting games isn't paying the AAF to do so.

 

" the Alliance of American Football, will kick off its inaugural regular season Feb. 9, 2019, and will include a modest broadcast deal with CBS, league executives announced Tuesday."

 

https://www.washingtonpost.com/news/early-lead/wp/2018/03/20/alliance-of-american-football-to-kick-off-after-super-bowl/?utm_term=.13bfc5944628

 

 

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