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Cheap Losses > Expensive Wins

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Old 08-23-2011, 07:02 PM   #1
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Cheap Losses > Expensive Wins

I had never thought of things this way:

TMQ says money motivates losing on the cheap instead of paying up for wins - ESPN

I'll be very honest, I personally thought the players had the better arguments for asking for what they asked for in this recent lockout. This article really brings home a lot of points about what is wrong with NFL front offices -- the nepotism in the Bears organization is particularly shocking.
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Old 08-23-2011, 07:14 PM   #2
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Re: Cheap Losses > Expensive Wins

I read this article earlier today and was going to post it so I"m glad you did. Also, I'm willing to bet you many owners would take profit over winning any day of the week.
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Old 08-23-2011, 07:53 PM   #3
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Re: Cheap Losses > Expensive Wins

Interesting to see the Skins are #2 in attendance behind Jonesies shiny new masterpiece of a stadium.
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Old 08-23-2011, 08:23 PM   #4
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Re: Cheap Losses > Expensive Wins

Quote:
Originally Posted by NC_Skins View Post
I read this article earlier today and was going to post it so I"m glad you did. Also, I'm willing to bet you many owners would take profit over winning any day of the week.
This article actually makes Dan Snyder look better. If he was truly concerned about making profits over winning, we'd be like the NFC version of the Bengals. Imagine how much money he'd make if he didn't spend anything on player salaries.

As for the Bears, I mean if they were truly concerned with making more money, why would they have given a big money deal to Julius Peppers? The theme of this article is that losing cheap makes almost as much money as winning big, yet the Bears aren't a shining example of a cheap team.
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Old 08-23-2011, 08:33 PM   #5
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Re: Cheap Losses > Expensive Wins

In this light you have to appreciate Dan Snyder, for all of his failings. He wants to win expensively even if he has historically pursued this dysfunctionally. Having Snyder as owner beats a "cheap loss" owner like Mike Brown.
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Old 08-23-2011, 09:45 PM   #6
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Re: Cheap Losses > Expensive Wins

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In this light you have to appreciate Dan Snyder, for all of his failings. He wants to win expensively even if he has historically pursued this dysfunctionally. Having Snyder as owner beats a "cheap loss" owner like Mike Brown.
ditto
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Old 08-23-2011, 10:06 PM   #7
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Re: Cheap Losses > Expensive Wins

Actually, there are two ways to do this:

1) Lose cheaply - get $20-30 million per their calculations.
2) Spend lavishly, but rearrange contracts/deals to generate a lot more revenue.

Snyder has always chosen (2), which is more fun (painful) to watch. I think Dan Snyder has been business-smart because he's found ways to make money while paying these expensive contracts. He's spent lavishly & excited the fans each year -> and the fans buy into the hype each year (McNabb and Haynesworth jerseys, tickets, etc). Thank goodness it seems like things have changed (?) and Shanny's running the show and a real team.


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The Passion of Redskins Owner Daniel Snyder - Forbes.com

"He started with the stadium, selling the naming rights to FedEx in 1999 for $205 million over 27 years. At nearly $8 million a year, it remains one of the highest annual payouts in sports. Snyder added 10,000 seats, most at premium prices. He wedged an extra 1,500 high-end seats into the front row and the end zones, the first owner to see value in those areas. He added 44 luxury suites which have little touches like flat-screen TVs over the urinals. He fixed the parking and egress. In all he's poured $160 million into the stadium, which cost $250 million to build originally.

It has paid off. Sponsorship revenues are up during his tenure from $2 million to $50 million. Concession and merchandise revenues have tripled to $12 million. Snyder reaps an estimated $10 million in profits from non-game-day events in the stadium (among the league leaders), which hosts concerts (the Rolling Stones, Bruce Springsteen) and college football games. The Redskins' revenues ($353 million) and operating income ($104 million) are second in the league behind the Cowboys, who just moved into a brand-new stadium."

Last edited by ethat001; 08-23-2011 at 10:09 PM.
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Old 08-24-2011, 05:55 AM   #8
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Re: Cheap Losses > Expensive Wins

Quote:
Originally Posted by ethat001 View Post
Actually, there are two ways to do this:

1) Lose cheaply - get $20-30 million per their calculations.
2) Spend lavishly, but rearrange contracts/deals to generate a lot more revenue.

Snyder has always chosen (2), which is more fun (painful) to watch. I think Dan Snyder has been business-smart because he's found ways to make money while paying these expensive contracts. He's spent lavishly & excited the fans each year -> and the fans buy into the hype each year (McNabb and Haynesworth jerseys, tickets, etc). Thank goodness it seems like things have changed (?) and Shanny's running the show and a real team.
well, the team's "sold out" since 1966, but they had to remove 10-20k seats this year because the cost of stupidity is passed right on to the consumer, and at a certain point, HDTV just wins out over $7 stale beer and long lines.

the clippers won cheap forever, someone actually did a docu about it (mainly the 70's 80's clippers) and I mean, they're the reason the NBA has a draft lottery.
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