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PFW:Increase in season-ticket sales only Band-Aid for Bills' finan


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Big whoop. Now he runs a 3-man lobbying firm and sits on a few boards. Former congressmen and VP candidates are a dime a dozen...and unless McCain wins in November, maybe worth less than that wholesale.

 

Unless Kemp can align himself with a group that has a vested interest in keeping the team in WNY, his national business contacts aren't that helpful, IMO.

Except this "dime a dozen" guy is extremely respected in the business world. Ever hear of the Kemp-Roth tax cuts?

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NFL owners make money on the appreciation in the team's value, not on an operating income basis. It's an asset that appreciates 15%-20% per year, all of which is tax-deferred until they sell the franchise.

Huh? These franchises are going to hit a point where they will plateau or decrease in value. Unless, their revenue per year can increase. In order for someone to buy an asset there has to be a secondary value to it... ie property, or operating income. People don't buy assets "just because".

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Except this "dime a dozen" guy is extremely respected in the business world. Ever hear of the Kemp-Roth tax cuts?

Yeah. That and $2.50 will buy you a latte.

 

Look, I like Kemp...but his star is twinkling, rather than shining these days. I know all about the business world, believe me (and I'm old enough to have voted for him as a Congressman :blink: ), and it takes a lot more more juice than Kemp (or Jimbo) has to pull together billion dollar transactions.

 

I wish him well, but I'm not holding my breath waiting for Jack (who I've never heard to be that closely linked to Ralph) to ride to the rescue.

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you are right-

 

owners like Dan Snyder and Jerry Jones are all for sharing the wealth with the other small market teams :blink:

 

That's a complete non sequitur. Not running your team like any other business is not the same as wanting to give away money to a team that competes with you on the field.

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Lease runs out in 2012, and so far, the Bills have rebuffed the county's attempts to begin negotiating a new one...

 

How hard have they tried? Are you thinking that the Bills simply do not think that it's time to negotiate with so much up in the air or do you think there is something more nefarious afoot?

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How hard have they tried? Are you thinking that the Bills simply do not think that it's time to negotiate with so much up in the air or do you think there is something more nefarious afoot?

I think Ralph does not want to tie the buyer of the team to a lease in Buffalo, that seems fairly obvious.

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How hard have they tried? Are you thinking that the Bills simply do not think that it's time to negotiate with so much up in the air or do you think there is something more nefarious afoot?

Short answer: I'm not sure.

 

Opinion: The loot from the Toronto package will help, but for the last few years, the salary cap has been increasing faster than the Bills' revenue stream. That will only get worse when the new stadiums open in Dallas and New Jersey -- remember, the cap is based on TOTAL revenue, even though the owners don't have to share any of the ridiculous $$$ they'll be charging for premium seats and suites. And the Bills were already having problems selling the suites at the Ralph, for prices far lower than what the market will bear in larger cities.

 

Unless a modified CBA brings major revenue-sharing relief to the small-market owners (or gets rid of the "total revenue" modifier to the salary cap calculations), I'm honestly not sure how much longer the franchise can remain viable in Western New York, no matter who owns it. I think Ralph is hesitant to renegotiate because he doesn't want to lock future owners into a market that may no longer be able to afford the team, and I think the Bills would fetch a higher price when that time comes if they're not tied into a lease here.

 

I hope I'm wrong.

 

Edit: I see Flbillsfan already answered for me while I was ruminating on the problem and thinking dark thoughts. Yup, Fl, that was definitely part of my reasoning.

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Huh? These franchises are going to hit a point where they will plateau or decrease in value. Unless, their revenue per year can increase. In order for someone to buy an asset there has to be a secondary value to it... ie property, or operating income. People don't buy assets "just because".

Why would the revenue decrease? Maybe if there's a worldwide depression or a giant meteor were headed for earth, but then who cares. TV contracts today, and pay per view tomorrow, are the pot of gold that keeps on growing. Ticket sales are gravy.

 

The asset value appreaciates for a simple reason--scarcity. There are only 32 of these in the world, and the pool of wanabe owners increases every year. It's the best investment there is, better than a Van Gogh, Park Avenue real estate or virgin oil fields...all tax free until sale, and the perfect collateral to borrow against if you want liquidity today.

 

NFL Franchise Values

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Just because both guys have Chicago ties and know Arkush, do you honestly think they'd be a source for anything Bills-related, other than 'we have a group of fine young men..."? Yeah, I can really see Marv talking about something like the Bills relocating behind Ralph's back.... :blink:

 

It's just as likely that the 'source close to the team' is someone in the local media that the writer knows, which is how most of these stories get put together.

 

 

If you think Marv Levy has to clear everything he says with Ralph Wilson you are extremely misinformed.

 

Or are you just being your usual negative, whiney and bitchy self? :thumbsup:

 

These "sources close to the team" in your opinion are most likely the local media. That's YOUR opinion.

 

In MY opinion, it includes national and local media, head coaches, asst. coaches, G.M.'s, scouts, etc.

 

If you don't realize that Marv Levy is intelligent, opinionated and capable of carrying on a conversation when the cameras are off that doesn't necessarily spout his often quoted maxims, you are not giving him enough credit.

 

 

But your the "expert".

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I talked to someone in the ticket office last week. He said the increase in season tickets is a direct result of the Toronto game. Canadians are buying Bills season tickets to insure getting tickets for the Toronto games.

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If you think Marv Levy has to clear everything he says with Ralph Wilson you are extremely misinformed.

 

Or are you just being your usual negative, whiney and bitchy self? :thumbsup:

 

These "sources close to the team" in your opinion are most likely the local media. That's YOUR opinion.

 

In MY opinion, it includes national and local media, head coaches, asst. coaches, G.M.'s, scouts, etc.

 

If you don't realize that Marv Levy is intelligent, opinionated and capable of carrying on a conversation when the cameras are off that doesn't necessarily spout his often quoted maxims, you are not giving him enough credit.

 

 

But your the "expert".

Marv is Ralph's personal friend, as well as being a former employee. That friendship means something to a guy who grew up in Marv's era (maybe not so much to younger people today, huh). No way, IMO, would he say something as blatant as that "source close to the team" was quoted.

 

Funny, you seem to be the guy bitching.... :blink:

 

[it's you're, BTW]

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Marv is Ralph's personal friend, as well as being a former employee. That friendship means something to a guy who grew up in Marv's era (maybe not so much to younger people today, huh). No way, IMO, would he say something as blatant as that "source close to the team" was quoted.

 

Funny, you seem to be the guy bitching.... :blink:

 

[it's you're, BTW]

 

Marv and Dick Jauron are both close personal friends with Hub Arkush.

 

It's no coincidence that Pro Football Weekly has "leaked" or supplied more reliable information regarding the Bills since Levy and Jauron have been associated with the team the last few years. Just as Donahoe spilled info. continually to Mort and Len Pasquarelli, news has been steered to PFW under Levy and Jauron.

 

Do you get Pro Football Weekly to notice this?

 

Have you been to Pro Football Weekly's corporate office outside of Chicago and talked with Hub Arkush?(and specifically talked to him about Jauron and Levy?)

 

Have you watched a Bills game with Marv's wife and daughter?(who like Marv, live in Chicago)

 

Have you been to many events around Chicago and met Marv?(He is very active and connected in the Chicago community)

 

I can answer yes to the the above questions. What about you?

 

Marv's life doesn't revolve around his relationship with Ralph Wilson.(or for that matter The Buffalo Bills) Sorry, if this is hard for you.

 

As much as Marv is loyal to ALL , he is not beneath sharing with people outside of the Buffalo microscope his TRUE opinion on the Buffalo franchise matter, especially if he's sharing it with someone he trusts like Arkush and his staff.

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remember, the cap is based on TOTAL revenue, even though the owners don't have to share any of the ridiculous $$$ they'll be charging for premium seats and suites. And the Bills were already having problems selling the suites at the Ralph, for prices far lower than what the market will bear in larger cities.

My understanding of that TOTAL revenue under the new CBA means TOTAL and that the income derived from selling suites and premium seats is no longer a dodge that team owners can use to escape their inclusion under the salary cap.

 

The old CBA gave players a right to a sliding scale which maxed out above 70% of the "designated" gross which did not include the suites and premium seats.

 

The players agreed to a lower % in the new cap (60.5%) because the dodge of putting in more suites and premium seats was taken away and the new total revenue actually gives the player a smaller % of a much higher number.

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