Bad Economy hits the Redskins

[MTK]

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.

[Dirtbag59]

Originally Posted by Mattyk72

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.

That is a pretty good point. I mean hell the NFL has made most of it's money already through their godforsaken exclusive rights deals which should at least account for a solid yearly income from the likes of Ridell, EA Sports, Rebock, Direct TV, and the such. Of course I presume that they don't pay off their exclusive rights deals up front.

[GusFrerotte]

Originally Posted by Dirtbag359

That is a pretty good point. I mean hell the NFL has made most of it's money already through their godforsaken exclusive rights deals which should at least account for a solid yearly income from the likes of Ridell, EA Sports, Rebock, Direct TV, and the such. Of course I presume that they don't pay off their exclusive rights deals up front.

I read an article that the NFL actually asked the Federal governemnt for a $2billion bailout last year to cover operating costs. Sorry guys, the era of bread and circuses is coming to an end. Those folks were trimmed down. Just like up here in the big 3, the NFL franchises are grossly bloated in useless beaucracy and will start to lose real money as any business. Look at the Lions as an example. They are a terribly run franchise, charge $40 parking to park in the Ford Field parking structure, you have to pay $30 for two dogs and cokes, and over $100 for a decent seated game ticket, just to see crappy football. FOlks quit paying to see them. I went to see them play the Skins at Ford Field, and I was shocked at the empty seats. There were more Skins fans in the upper decks than Lions fans. The folks laid off were deemed to be redundant to operations at Redskin Park, and that their duties could be easily passed to people doing a similar job in the organization. 2009 very well could end up like 1929, so more of this will come.

[FRPLG]

Originally Posted by Mattyk72

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?

[MTK]

Originally Posted by FRPLG

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.

[GTripp0012]

Originally Posted by Mattyk72

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.

[irish]

Originally Posted by Mattyk72

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.

[SmootSmack]

Originally Posted by irish

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.

[Lancer]

Originally Posted by irish

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.

If the land was worth so much, it would be reflected in the market cap of the stock. When Danny boy bought into SF, the market cap was like $1.6B. Now the market cap is $160M, which by my calculations is a 90% drop in the value of the business AND the real estate. So your argument is bullshit, and Danny Boy is stinging from the loss I can tell you. So is his brown-nose VP of football operations, Vinny, who investment most of his net worth into SF. Vinny can't see past Danny's ass, in both business and football decision making.

[44ever]

Originally Posted by Lancer

If the land was worth so much, it would be reflected in the market cap of the stock. When Danny boy bought into SF, the market cap was like $1.6B. Now the market cap is $160M, which by my calculations is a 90% drop in the value of the business AND the real estate. So your argument is bullshit, and Danny Boy is stinging from the loss I can tell you. So is his brown-nose VP of football operations, Vinny, who investment most of his net worth into SF. Vinny can't see past Danny's ass, in both business and football decision making.

Think we finally found someone that Loves the Danny/Vinny show. Plus he's a fiancial analyst. Welcome!

[Lancer]

Originally Posted by Lancer

If the land was worth so much, it would be reflected in the market cap of the stock. When Danny boy bought into SF, the market cap was like $1.6B. Now the market cap is $160M, which by my calculations is a 90% drop in the value of the business AND the real estate. So your argument is bullshit, and Danny Boy is stinging from the loss I can tell you. So is his brown-nose VP of football operations, Vinny, who investment most of his net worth into SF. Vinny can't see past Danny's ass, in both business and football decision making.

I was wrong. My recollection was not entirely accurate and I should have rechecked my numbers. The news is actually worse. I was off by a decimal point and then some. The market cap from 2005 when he bought has dropped from $600M to $30M (rounding off), which is a 95% drop.

"Snyder/Cerrato’s holdings were worth $130,291,109 before his innovations took hold. As of last month, almost three years into his reign, that pile of paper (including real estate) was worth just $1,747,408"

Snyder has cost himself and his friends $128,543,701. a 98% loss. Business Week reports it may go bankrupt.