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Bad Economy hits the Redskins

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Old 01-10-2009, 05:02 AM   #16
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Re: Bad Economy hits the Redskins

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Originally Posted by skinsfan69 View Post
When Snyder took over this team was not the cash cow it is now. I mean look at all the advertisng all over the stadium. I know the advertising has calmed down a bit during these times but still. He's done a nice job marketing the team. Plus he came up with the local Redskin stores. He has made the team a lot more valuable than when JKC had the team. Now he's lucky to be in this market, that helps.

People were laid off in the NFL offices so naturally this hits the teams too. I'm not surprised. I didn't know John Jefferson worked for the Redskins.
No to almost all of it,sorry nope......no to all of it.see my other post.
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Old 01-10-2009, 09:03 AM   #17
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Re: Bad Economy hits the Redskins

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Originally Posted by sportscurmudgeon View Post
The cuts in "staff" for NFL teams including the Redskins is not nearly over yet. And don't look closely at the folks working for teams in "lesser sports"; thos folks' jobs are in serious jeopardy.

The Redskins continue to be the cash cow that was mentioned above, but Danny Boy's other ventures are not doing all that well. Six Flags could delcare bankruptcy; buying up American Bandstand has not been a humongous success; Danny Boy is in the fast food business (forget which minor chain he bought about two years ago) and all of the companies in that business sector are seeing "revenue shortfalls".

These Redskins' folks were laid off because times are getting tighter - - not because the Skins don't want them.

Here is the signal that the franchise might not be pulling down as much $$$ as Danny Boy would want:
Ticket Price Reductions.
The Skins have a top-tier stadium price structure and they have some long term commitments from folks with heavy bread for premium seats. If they reduce other ticket prices, they might see a huge cry for relief in the really expensive seats - - and that is a big part of the cash cow's milk production. The Skins do not want to have to reduce ticket prices - - but they may be forced to do just that.
There may not be an increase in prices, but I am 90% certain there will not be price reduction. There is no need. They have a waiting list in the thousands, the Redskins are the premium sports brand in the region. Let's be clear, for every season ticket holder that doesn't renew, there are five who have been waiting for the chance to buy season tickets.

But lets be real. We are not in the Great Depression. The news makes it seem bleak, but people still gave their kids gifts for Christmas, still flew to see Grandma for the holidays, and still go out to drink, eat, and have a good time, and still will be going to Redskins games, tailgating with friends, and buying merchandise.

Oh, and Giantone, the Skins really are worth $1.5 billion. In the real world.
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Old 01-10-2009, 11:22 AM   #18
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Re: Bad Economy hits the Redskins

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Originally Posted by memphisskin View Post
......But lets be real. We are not in the Great Depression. The news makes it seem bleak, but people still gave their kids gifts for Christmas, still flew to see Grandma for the holidays, and still go out to drink, eat, and have a good time, and still will be going to Redskins games, tailgating with friends, and buying merchandise.

Oh, and Giantone, the Skins really are worth $1.5 billion. In the real world.
Our current "Great Recession" will not hit the "30's Great Depression" type losses only because policymakers learned form the 30's mess. Most of the current great Economists in power like the Fed Chairman Ben Bernanke are students of the Great Depression. Treasury Secretary Henry Paulson remembers the mistakes made by Andrew Mellon the treasury secretary before and during the great depression.
The Great Depression resulted from the end of a housing bubble in 1926 and the end of a high-tech bubble in 1929. But the main reason it reached to such a bad level was from incredible neglect and incompetence/inexperience on the part of policymakers in power at the time. The #1 cause was the Fed's failure to act. It basically stood by as the banking system and the economy collapsed around it.
This time, in contrast, the Fed can hardly be criticized for inaction. Not only has it cut lending rates to all time lows, but it has also thrown a lot of money on the fire. We will be $trillions of dollars further into debt by the end of the 1st quarter of 2009 because of this crisis. This money has been spent to bail out banks, lending institution and large companies (like the big 3 auto companies). This current crisis could have very easily reached Great Depression levels if action was not taken.

Washington DC area is very wealthy and some what insulated from this mess as compared to other parts of the country.
Because you or I have not lost our jobs does not mean this is not a huge economic crisis. 1.9 Million people lost their jobs in 2008 November: Most jobs lost since 1974 - Dec. 5, 2008
I have several friends in Michigan and Ohio who lost their jobs, houses and have to move to another state to find work.
This economic crisis will continue at least into the 1st half of 2009. According to reports, planned jobs cut announcements for January soared to 181,671, the second-highest total on record. This is far from over.

Last edited by Defensewins; 01-10-2009 at 11:30 AM.
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Old 01-10-2009, 12:09 PM   #19
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Re: Bad Economy hits the Redskins

memphisskin:

At the moment, the lower priced season tix are sold out and there is a waiting list. You are correct.

At the moment, the premium seats are NOT sold out and there is "erosion" in the numbers of renewals compared to the number of new purchasers.

If - - I said IF - - problems hit the lower price segment and those seats aren't sold out, the Redskins will face an interesting financial situation. It isn't likely to be a fatal flaw, but it will be one that requires some "poise" as the team navigates through.

Those conditions are not here yet; they may never arrive; or they may be here in about 12 months.

Regarding the valuation of the Redskins at $1.5B, that number comes from estimates done by Forbes and places like that. The Redskins are worth - - in the real world - - what someone will pay for them. Consider:
About 15 months ago, an investment banking firm - - forget which one - - valued the Chicago Cubs franchise including Wrigley Field to be worth $1.4B. The Tribune Company needs to sell the Cubs because its owner, Sam Zell, is sinking under the interest payments on the $12B loan he took out to buy the Tribune Company.

In the first round of bids, the highest bid was $1.3B and the low bid was $1.0B. The Tribune Company diddled around and now ALL of those bids have been rescinded by the potential buyers. One report was that the next round of bids will come in with significantly reduced prices We shall see....
Estimated values by bankers and by magazines are just that - - estimates. If someone tells you that he thinks your house is worth $50M, that does not make it so and it does not mean you have $50M to spend - - in the real world. You need a buyer with that kind of money ready to give you a check for that amount to make it - - real.

Until someone is willing to pony up $1.5B for a team, then no one knows what its value is - - in the real world. Maybe the Redskins are worth $20B...?
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Old 01-10-2009, 11:01 PM   #20
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Re: Bad Economy hits the Redskins

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I agree. They were not laid off because of the economy, they were fired because they were not wanted anymore.
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Old 01-10-2009, 11:06 PM   #21
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Re: Bad Economy hits the Redskins

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Originally Posted by Defensewins View Post
Our current "Great Recession" will not hit the "30's Great Depression" type losses only because policymakers learned form the 30's mess. Most of the current great Economists in power like the Fed Chairman Ben Bernanke are students of the Great Depression. Treasury Secretary Henry Paulson remembers the mistakes made by Andrew Mellon the treasury secretary before and during the great depression.
The Great Depression resulted from the end of a housing bubble in 1926 and the end of a high-tech bubble in 1929. But the main reason it reached to such a bad level was from incredible neglect and incompetence/inexperience on the part of policymakers in power at the time. The #1 cause was the Fed's failure to act. It basically stood by as the banking system and the economy collapsed around it.
This time, in contrast, the Fed can hardly be criticized for inaction. Not only has it cut lending rates to all time lows, but it has also thrown a lot of money on the fire. We will be $trillions of dollars further into debt by the end of the 1st quarter of 2009 because of this crisis. This money has been spent to bail out banks, lending institution and large companies (like the big 3 auto companies). This current crisis could have very easily reached Great Depression levels if action was not taken.

Washington DC area is very wealthy and some what insulated from this mess as compared to other parts of the country.
Because you or I have not lost our jobs does not mean this is not a huge economic crisis. 1.9 Million people lost their jobs in 2008 November: Most jobs lost since 1974 - Dec. 5, 2008
I have several friends in Michigan and Ohio who lost their jobs, houses and have to move to another state to find work.
This economic crisis will continue at least into the 1st half of 2009. According to reports, planned jobs cut announcements for January soared to 181,671, the second-highest total on record. This is far from over.
~~~~
Wasn't the unemployment rate in the mid twenties during the Great Depression? We are not in a Great Depression by any means. Are times tight yes? We got so use to going out what we want not just what we need, now we are having to think differently. In this 24-7 media we live in they have to keep the fires going and this is what they are doing right now.
Michigan has been in a recession for a couple of years now. You are so right in the DC area we have always been some insulated to the problems that affect the rest of the country.

I do think that Congress has got to stop throwing money at the problem because as of now it is not working.
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Old 01-11-2009, 12:31 AM   #22
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Re: Bad Economy hits the Redskins

Well it's bad news in 2 ways how I see it: sure it sucks for the poor blokes out of work, but I don't see that any "underperforming" coaches got the axe. In fact, we've only seen the one leave on retirement. Unbelievable to me that Stan Hixon has a job. Unbelievable.

"My job is to develop WRs in the National Football League and in 5+ years i can't point to one guy I mentored to a higher level. In fact, I've just had one bust after another come through my locker room." Putting it an f'ing t-shirt and sending it to Redskin Park addressed to Stan Hixon.
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Old 01-11-2009, 01:12 AM   #23
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Re: Bad Economy hits the Redskins

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Originally Posted by Mattyk72 View Post
How exactly are NFL teams feeling the crunch of the economy? I'm not buying it. Just wait and see how much they spend in free agency, meanwhile some guy who works at the stadium is out on the street. F'd up.
Why is it F'd up? They can employ whoever they want can't they? If they offered you 5 mil to play QB would tell them "Nah, I wouldn't be any good and it'd be F'ed up that you were paying me a bunch of money to do a bad job when the guy sitting in the cube next door could do the same as me." They are a busniess and should be able to hire and fire who they want shouldn't they? If they don't need the employee why continue to employ them? Did Snyder turn them into a charitable group and I didn't know it?
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Old 01-11-2009, 11:39 AM   #24
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Re: Bad Economy hits the Redskins

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Why is it F'd up? They can employ whoever they want can't they? If they offered you 5 mil to play QB would tell them "Nah, I wouldn't be any good and it'd be F'ed up that you were paying me a bunch of money to do a bad job when the guy sitting in the cube next door could do the same as me." They are a busniess and should be able to hire and fire who they want shouldn't they? If they don't need the employee why continue to employ them? Did Snyder turn them into a charitable group and I didn't know it?
Just don't use the the economy as an excuse. It's a laughable one the minute they sign their first big ticket free agent to a multi-million dollar deal. And we're supposed to believe Joe Schmoe's $30k a year salary is putting them in a bind? Please.
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Old 01-11-2009, 11:47 AM   #25
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Re: Bad Economy hits the Redskins

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Just don't use the the economy as an excuse. It's a laughable one the minute they sign their first big ticket free agent to a multi-million dollar deal. And we're supposed to believe Joe Schmoe's $30k a year salary is putting them in a bind? Please.
Well, salary floor. I understand what you are saying though, but cutting costs can only be done to a certain degree with the million dollar players on the field.

The realities of revenue sharing means that the Redskins have to cut costs even if they don't see a downturn in revenue, simply because they'll owe more to other franchises who are being more directly affected.
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Old 01-11-2009, 11:52 AM   #26
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Re: Bad Economy hits the Redskins

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How exactly are NFL teams feeling the crunch of the economy? I'm not buying it. Just wait and see how much they spend in free agency, meanwhile some guy who works at the stadium is out on the street. F'd up.
I agree, the NFL teams arent feeling much of a crunch, these layoffs are a ploy to make it appear they are suffering like everyone else. Unfortunately the little guys in the organizations are the ones that suffer and thats f'd up.

BTW, a previous poster mentioned DS and not doing good with 6 flags. I have read in a few places that DS is much more interested in 6 flags for the real estate value than for running an amusement park. He couldnt care less how the park perform because the real $ is in the land the park is on.
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Old 01-11-2009, 01:41 PM   #27
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Re: Bad Economy hits the Redskins

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Originally Posted by TheSmurfs22 View Post
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Having worked for an NFL team usually when the team performs average to below average the first people to get cut are not coaches and players.
True dat
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Old 01-11-2009, 01:44 PM   #28
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Re: Bad Economy hits the Redskins

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Originally Posted by skinsfan69 View Post
When Snyder took over this team was not the cash cow it is now. I mean look at all the advertisng all over the stadium. I know the advertising has calmed down a bit during these times but still. He's done a nice job marketing the team. Plus he came up with the local Redskin stores. He has made the team a lot more valuable than when JKC had the team. Now he's lucky to be in this market, that helps.
Agreed, but value schmalue. Fans are tired of hearing the praises of Snyder's balance sheet. And unlike JKC, Snyder has not made the Redskins winners - something that justifies dropping $500 for a ticket and a beer.

Last edited by SkinDogg; 01-11-2009 at 01:50 PM.
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Old 01-11-2009, 01:44 PM   #29
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Re: Bad Economy hits the Redskins

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I agree, the NFL teams arent feeling much of a crunch, these layoffs are a ploy to make it appear they are suffering like everyone else. Unfortunately the little guys in the organizations are the ones that suffer and thats f'd up.

BTW, a previous poster mentioned DS and not doing good with 6 flags. I have read in a few places that DS is much more interested in 6 flags for the real estate value than for running an amusement park. He couldnt care less how the park perform because the real $ is in the land the park is on.
That's definitely true about 6 Flags.

Seems like a lot of the people let go were from the tv operations of the Redskins, and some may be re-hired for other positions.
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Old 01-11-2009, 03:23 PM   #30
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Re: Bad Economy hits the Redskins

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Well if I had known Dan was going to run the franchise into the ground I wouldn't have settled for a minority owner spot.



What I'm morbidly curious to see is how the Redskins do in the long run. Maybe his success has been a result of what he's always done with running the team, sacrifice long term plans in favor of short term get-rich quick schemes. The fans are starting to get fed up with the way the team is running the organization and apparently the season ticket waiting list is for lack of a better word, bullshit. I've heard of people that have been contacted about season tickets within a year of signing up. On top of that they got Larry Michael robo calls going around now with Jack Kent Cooke showing up on caller ID's.
You have no idea what your talking about. If you wanted season tickets you could call there right now and get them. Oh, bring your check book because these are the high dollar tickets that only a few can afford and that why there is always some season ticket to be had. Snyder did not have short term get rich plans with the skins. He tried buying a SB team to win the SB but it was in no way a short term get rich plan. It was more of spend a ton of money in hopes of winning a SB and that way cost alot more than building a team.
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