Yes, but you still need other sources of income in the interim or you'll lose that house.
Which is the case with these franchises - they are money losers, until every now and then their leagues sign monster TV contracts or hit the jackpot with new franchise fees - as opposed to direct revenue streams from their day-to-day operations.
It's a complicated one-of-a-kind business model, which pretty much flies in the face of every economic rule in the book.
Do I think it's a sustainable business model? No, not forever. Especially once those lucrative TV contracts dry up over time because of "cord cutters".
Anyway, nobody got rich owning a sports franchise - they're already rich. Their team is just a toy.
From a revenue perspective, most teams lose money and are basically subsidized props so the few big market teams can fill their schedules. LOL
If not for caps, drafts, revenue sharing and other gimmicks, there would be less than 10 teams in each league - the richest owners would spend so much money on salaries, none except the top 4-5 teams could compete. First it would be the small markets, but eventually more than half the league would disappear.
So...are players overpaid in this artificial market? Absolutely!
You claim the Bucks are worth 1.9B? Maybe so, but only because the Knicks, Nets, Bulls, Clippers, Lakers etc. are bringing in most of that revenue. For the NBA's top tier, the Bucks are basically a write off - the cost of doing business.
Left to their own devices, these stupid egotistical owners would literally cannibalize franchise after franchise.
So yes, most sports franchises are economic losers - BIG TIME!
If not for caps, drafts, revenue sharing and other gimmicks, there would be less than 10 teams in each league - the richest owners would spend so much money on salaries, none except the top 4-5 teams could compete. First it would be the small markets, but eventually more than half the league would disappear.
So...are players overpaid in this artificial market? Absolutely!
You claim the Bucks are worth 1.9B? Maybe so, but only because the Knicks, Nets, Bulls, Clippers, Lakers etc. are bringing in most of that revenue. For the NBA's top tier, the Bucks are basically a write off - the cost of doing business.
Left to their own devices, these stupid egotistical owners would literally cannibalize franchise after franchise.
So yes, most sports franchises are economic losers - BIG TIME!
what's 'too much'? lol
Sport is big bucks, they have monopolies too. folks love their sport--look at the NFL--remember when people said the NFL was going to die? lol .
www.sportico.com
like printing monies
www.sportico.com
the market is waht the market is . Players getting a piece of the prize
Sport is big bucks, they have monopolies too. folks love their sport--look at the NFL--remember when people said the NFL was going to die? lol .
Goodell’s $25 Billion Revenue Goal Remains in NFL’s 2027 Sights
It was the NFL’s annual March owners meeting in 2010 where commissioner Roger Goodell first presented an ambitious goal: $25 billion in yearly league revenue by 2027, up from roughly $8 billion at …
www.sportico.com
like printing monies
MLB Sponsorships Hit $1.1 Billion With Jersey, Helmet Patches on Deck
Major League Baseball and its 30 teams generated $1.13 billion in sponsorship revenue last year, according to consultancy IEG and its Sponsorship Intelligence Database. It is poised to jump further…
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the market is waht the market is . Players getting a piece of the prize
gotta have some kinda cap. Or else you are left with the likes of European soccer. Look at La Liga-- it's either Real or Barca.....occasionally they let another win a title, for shits and giggles . Over the last 20 yrs Barca or Real has won La Liga 17 times --wtf is the point of this? its not a fair fight
Ricboff, it's a joke.
And it is BIG business, but the business is mostly concentrated in BIG markets - NY, LA, Chicago etc.
All the league's TV revenue and franchise value comes from those markets. The rest don't make money.
So while North American sports somewhat try and split the pie, Euro soccer does nothing.
Take a look at the top 5 payrolls in the Bundesliga:
1. Bayern Münich €180,720,000
2. Borussia Dortmund €101,206,000
3. Bayer 04 Leverkusen €67,440,000
4. VfL Wolfsburg €58,093,000
5. RB Leipzig €57,650,000
And it just gets worse from there.. .
So Bayern wins every single year. What's the point?
English Premiere League is a little more competitive...maybe 5 teams? can win the title year to year?
MLB is probably the NA sport the most disparity, so basically like EPL...only a few teams can win in a given year. The Dodgers spend 290m while the Orioles spend 45m. LOL
Do sports players get paid too much? Yes, but the entire business model is beyond fucked up!
And it is BIG business, but the business is mostly concentrated in BIG markets - NY, LA, Chicago etc.
All the league's TV revenue and franchise value comes from those markets. The rest don't make money.
So while North American sports somewhat try and split the pie, Euro soccer does nothing.
Take a look at the top 5 payrolls in the Bundesliga:
1. Bayern Münich €180,720,000
2. Borussia Dortmund €101,206,000
3. Bayer 04 Leverkusen €67,440,000
4. VfL Wolfsburg €58,093,000
5. RB Leipzig €57,650,000
And it just gets worse from there.. .
So Bayern wins every single year. What's the point?
English Premiere League is a little more competitive...maybe 5 teams? can win the title year to year?
MLB is probably the NA sport the most disparity, so basically like EPL...only a few teams can win in a given year. The Dodgers spend 290m while the Orioles spend 45m. LOL
Do sports players get paid too much? Yes, but the entire business model is beyond fucked up!
agreed Joe. euro soccer is a joke and MLB aint too far behind
I see RayFinkel's point tho. As an example , the Blackhawk's run may have continued longer if they didnt have to rid important pieces as contracts came up to middle tier players . So a team is growing as a unit, having success, certain players begin to flourish contracts come up and yet the team cant retain them? Wonder if they can tweak it such that if a player has been with a team for X yrs, that only a % of his new salary is included in the cap (say 70%) ?
This would be a good thing for fans and give 'dynasties' a chance to happen .
heck look at Colorado! they better win soon. Byram Bowen has a chance to blossom into an elite dee, give him time-- if he does ? he's out they wont have money to sign him. . McKinnon has 1 yr left on his contract the guy is only making $6.8 mill . Col is going to have problems. To Ray's point-- should they be penalized for great drafting?
Rantanen- $9.4 mill (lol)
Makar - $9 mill
Mackinnon - $6.8 mill
Landeskog- $7 mill
MacKinnon will be making $11 in 2 yrs, that's it, no room for more big contracts. They start to lose pieces .
I see RayFinkel's point tho. As an example , the Blackhawk's run may have continued longer if they didnt have to rid important pieces as contracts came up to middle tier players . So a team is growing as a unit, having success, certain players begin to flourish contracts come up and yet the team cant retain them? Wonder if they can tweak it such that if a player has been with a team for X yrs, that only a % of his new salary is included in the cap (say 70%) ?
This would be a good thing for fans and give 'dynasties' a chance to happen .
heck look at Colorado! they better win soon. Byram Bowen has a chance to blossom into an elite dee, give him time-- if he does ? he's out they wont have money to sign him. . McKinnon has 1 yr left on his contract the guy is only making $6.8 mill . Col is going to have problems. To Ray's point-- should they be penalized for great drafting?
Rantanen- $9.4 mill (lol)
Makar - $9 mill
Mackinnon - $6.8 mill
Landeskog- $7 mill
MacKinnon will be making $11 in 2 yrs, that's it, no room for more big contracts. They start to lose pieces .
It's true, the Blackhawks could have been a dynasty with an unlimited payroll, but then you would have to lop off at least...well, 5-7 teams off the top of my head. Though I suppose the NHL could scrap the cap and go back to the good ol' Original Six. LOL
Sports salaries are ridiculously inflationary throughout all economic systems, and all it takes is one bonehead owner to screw up the league's entire payroll structure.
The Chiefs hand Patrick Mahomes 500m because they believe he's the second coming of Tom Brady (oops!) and right away every agent and QB is demanding 70-80-90% of that contract because, well, they're 70-80-90% as good Mahomes.
Notice these numbers are completely arbitrary. Up until 1990, Joe Montana earned $356,000.
Sports salaries > Bideninflation
Sports salaries are ridiculously inflationary throughout all economic systems, and all it takes is one bonehead owner to screw up the league's entire payroll structure.
The Chiefs hand Patrick Mahomes 500m because they believe he's the second coming of Tom Brady (oops!) and right away every agent and QB is demanding 70-80-90% of that contract because, well, they're 70-80-90% as good Mahomes.
Notice these numbers are completely arbitrary. Up until 1990, Joe Montana earned $356,000.
Sports salaries > Bideninflation
'Sports salaries are ridiculously inflationary throughout all economic systems, and all it takes is one bonehead owner to screw up the entire league's payroll structure.'
yup, happened in hockey as well. Sabres contract to Eichel starts the snowball. The Leafs followed as Mathews wasnt going to take significantly less money than Jack, needs more actually . Dubas further lost his shit handing Marner 10 mill. Sabres and Leafs (two iconic successful hockey franchises
) have fucked the league salary structure. Keep in mind these were 3 young players resume's were just forming
kaput
yup, happened in hockey as well. Sabres contract to Eichel starts the snowball. The Leafs followed as Mathews wasnt going to take significantly less money than Jack, needs more actually . Dubas further lost his shit handing Marner 10 mill. Sabres and Leafs (two iconic successful hockey franchises
) have fucked the league salary structure. Keep in mind these were 3 young players resume's were just formingkaput
The Eichel contract was basically structured around the McDavid contract. McDavid is touted as the next Gretzky, so the Oilers open the vault smashing the league's salary structure by handing him 12.5m, and then - here we go again! - Eichel and his agent say he's 80% McDavid. LOL
Then Matthews...arguably the NHL's highest paid player if you factor in the number of free agent years he didn't give his team vs McDavid who went max term. 5 vs 8 years is huge! I'm not arguing who the better player is (different conversation) but that is also a terrible deal.
And speaking of royally screwing up team salary structures...LOL at that Tavares contract which got the ball rolling. Is he even playing right now? In a cap league, those deals are fatal.
Doogie Howser ain't too bright, Ricboff.
Then Matthews...arguably the NHL's highest paid player if you factor in the number of free agent years he didn't give his team vs McDavid who went max term. 5 vs 8 years is huge! I'm not arguing who the better player is (different conversation) but that is also a terrible deal.
And speaking of royally screwing up team salary structures...LOL at that Tavares contract which got the ball rolling. Is he even playing right now? In a cap league, those deals are fatal.
Doogie Howser ain't too bright, Ricboff.
'- Eichel and his agent say he's 80% McDavid. LOL'
yeah that's a big LOL.
you make a good point, the genesis is Connor's contract, one could argue. They paid him MORE than an accomplished generational talent in Sid .
i agree the length of contract for tavares was horrible, just horrible. I was okay with the signing, just not the length of the contract. The Leafs have become a playoff team under Dubas watch, so not all bad. BUT, he's walking the tight rope in Hogtown as expectations increase
yeah that's a big LOL.
you make a good point, the genesis is Connor's contract, one could argue. They paid him MORE than an accomplished generational talent in Sid .
i agree the length of contract for tavares was horrible, just horrible. I was okay with the signing, just not the length of the contract. The Leafs have become a playoff team under Dubas watch, so not all bad. BUT, he's walking the tight rope in Hogtown as expectations increase
Strange thing to hear from a capitalist
Every owner makes money through ownership,
Hence they get paid
But we keep paying and we keep watching
Hence they get paid
