ESPN: Teams that are helped/hurt by the new salary cap proposal

Monkeydad

Players have no direct impact on profits. Revenue, yes, but not profits. Their salaries should not be tied to a number that can be manipulated and affected by ownership decisions.

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Giantone

Sorry I have to disagree here. If the team wins....,fans are happy and spend more ...or don't mind spending more should I say then the fans of a team that well......sucks.So yeah the players do affect profit.

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NLC1054

...We suck and fans still spend money on this team...

Lotus

What you are saying is still a matter of revenue, not profit. If the owner chooses to build a practice field on the moon, it doesn't matter how good the team is or how much the fans spend, that team will lose money.

Players affect revenue. Profit is a different animal.

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Giantone

Nope, Business 101 if you have a good product customers want and you supply that in a matter that is costly and efficent ....you will make a profit.Without the players there is no game to sell ,ergo no revenue, ergo no profit.

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tryfuhl

Bad analogy as the margins on beverages are quite high.

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JoeRedskin

Players = Profit? No. Players = Revenue. As you stated, profit requires revenue and good management ...

Player generated revenues + Good Management = Profit

Player generated revenues + Bad Management = Loss

Players get there cut of the revenue before management gets to touch it. And watch ... it doesn't affect the formula

1/2 Player generated revenues + Good Management = Profit

1/2 Player generated revenues + Bad Management = Loss

No... w/out the players, or the lemonade, there is no revenue. Revenue, however, does not guarrantee profit. It simple business 101.

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JoeRedskin

I dunno, 9 Billion in revenues basically generated by roughly 2,000 guys playing a game is a pretty good margin.

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Lotus

Go back to Business 101. You continue to confuse the concepts of revenue and profit. Profit includes expenses, revenue does not. You use the concepts too interchangeably.

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Monkeydad

You're not clear on your financial terms. Money coming in is REVENUE. Players can affect revenue.

Profits are what is remaining of the revenue after the owner spends on operating expenses and whatever he desires beyond that. The profit figure is determined by the owner's spending habits, decisions on things like the stadium and if he wants his own TV/Radio/etc. Players have no affect or influence on profit.



"Business 101" must be the only class you took. :cheeky-sm

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Giantone

Yup I'm sure,if player can affect revnue then they affect profit,without them you don't have a product to sell ...so no revenue.You guys sound like the Wall Street guys from the HBO movie to big to fail....with the way you guys are thinking the league would collapse in a year.

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Giantone

Haven't confused a thing jr.players generate the revenue by playing the game,so if they don't play and don't generate revenue how much profit do you make ....if they don't play?It's minds like yours that put the housing market the way it is today.

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Monkeydad

If we were talking about opinions, you would have the right to disagree. We're talking about facts here and you're just wrong/mistaken.

Do you wish to continue your disagreement on finances with an accountant? I'm honestly bored with repeating myself.

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