As I said, the economy will impact deals now

[Skkorpion]

http://www.azcardinals.com/news/detail.php?PRKey=2915

By Darren Urban. And certainly, TV deal runs through 2010 but the revenue is not 100% preset. The NFL has had to agree to givebacks to the networks before and I think might again this year.

Several big advertisers have already dumped the NFL or pulled back. We don't know their names yet. When GM fails, as is inevitable, fallout will be rapid. All auto ad budgets will already be smaller anyway.

Beer ads probably stay at good levels. Not sure about everything else.

 

[red desert]

Beer ads probably stay at good levels. Not sure about everything else.

Whew! You had me worried there for a second.

 

[abomb]

In other news, Roger Goodell cut his salary by 20% today.

 

[cardsfanmd]

Whew! You had me worried there for a second.

 

[Ryanwb]

I just read that beer sales have dropped unexplainably 9%

 

[Perfectionist]

I just read that beer sales have dropped unexplainably 9%

But hard liquor has probably gone up. Need a quicker fix for our woes.

 

[Ryanwb]

But hard liquor has probably gone up. Need a quicker fix for our woes.

Slightly down, but some people on this board aren't pulling their weight!

http://www.fivethirtyeight.com/2009/02/breaking-beer-no-longer-recession-proof.htmlhttp://www.dailymarkets.com/economy/2009/02/19/of-banks-and-beer-sales/

 

[Perfectionist]

Slightly down, but some people on this board aren't pulling their weight!

http://www.fivethirtyeight.com/2009/02/breaking-beer-no-longer-recession-proof.htmlhttp://www.fivethirtyeight.com/2009/02/breaking-beer-no-longer-recession-proof.htmlhttp://www.fivethirtyeight.com/2009/02/breaking-beer-no-longer-recession-proof.html

But I'm pulling mine!!

 

[O]

You see all these athletes being let go from their teams and it's not because they are bad athletes or the fact that they are getting old it's the all about the money.
Skorp, you made a referrence in another thread where you thought MLB would be a good measuring stick of the economy regarding ticket sales. To a certain extent I agree but I personally thing the NFL will see a big hit on renewals this year. The tip of the iceberg has not been seen yet. I think you will see a lot of NFL games not sold out next year and subseqiently blacked out adding fuel to the fire.
Uncapped year, the economy, corporate bankruptcies, greedy agents, players out of touch with reality, [Haynesworth 100 Million Dollars, please?] things are going to get interesting.

 

[Buckybird]

In other news, Roger Goodell cut his salary by 20% today.

Yeah, he only makes $11 mil now. Gimmie a break!!!

 

[az1965]

Goodell, meanwhile, voluntarily took a cut of 20-25 percent from the $11 million salary and bonuses he was to receive in the 2008 fiscal year, which ends March 31. He and other league executives are freezing their salaries for 2009.

leading by example...

 

[CardinalChris]

The tug of war will be the guaranteed money. Teams will be less likely to spend it, but players will still demand it. The top FAs will still get paid because the NFL will still make $, even in the bad economy.

Now one phenomenon I think could happen that would be interesting is that mid-tier free agents may not make as much as previously. So your top guys will actually (in my opinion) see some pretty huge overall dollars. But the guys just after them may not see the same contracts they normally would.

 

[CardLogic]

Goodell, meanwhile, voluntarily took a cut of 20-25 percent from the $11 million salary and bonuses he was to receive in the 2008 fiscal year, which ends March 31. He and other league executives are freezing their salaries for 2009.

Yeah, he only makes $11 mil now. Gimmie a break!!!

Approx. $8 million with the cut.

It's an admirable gesture on his part. Does he still make too much? Yes. But his salary is comparable to other corporate executives. They all make too large an income relative to average income in the US.

 

[WildBB]

Approx. $8 million with the cut.

It's an admirable gesture on his part. Does he still make too much? Yes. But his salary is comparable to other corporate executives. They ALL make too large an income relative to average income in the US.

Fixed it for ya.

 

[football karma]

one more factor to consider that I think will drive deals downward:

with credit markets (i.s. bank lending) tightening up -- teams will have a harder time getting the loans they need to pay out huge signing bonuses.

Setting aside the top 5 or 7 teams, the other teams in the NFL while undoubtedly profitable over the course of a full year just dont have $15mm or $25mm just sitting around in the bank. To pay those signing bonuses, they need a loan. With credit restricted, those loans are either harder to some by or more expensive.

In addition -- if I am an NFL owner of a bottom third of the league revenue wise team-- I am looking at the possibility of: 1. lower ticket sales and 2. big sponsors like GM pulling out in the future. Even if I could -- would I want to borrow a bunch of money to pay bonuses if I am a little unsure of my future revenue streams? Maybe not.

 

[Ryanwb]

When does revenue sharing and the TV dollars pay out? Isn't it a large lump sum give to the team each year?

 

[WildBB]

one more factor to consider that I think will drive deals downward:

with credit markets (i.s. bank lending) tightening up -- teams will have a harder time getting the loans they need to pay out huge signing bonuses.

Setting aside the top 5 or 7 teams, the other teams in the NFL while undoubtedly profitable over the course of a full year just dont have $15mm or $25mm just sitting around in the bank. To pay those signing bonuses, they need a loan. With credit restricted, those loans are either harder to some by or more expensive.

In addition -- if I am an NFL owner of a bottom third of the league revenue wise team-- I am looking at the possibility of: 1. lower ticket sales and 2. big sponsors like GM pulling out in the future. Even if I could -- would I want to borrow a bunch of money to pay bonuses if I am a little unsure of my future revenue streams? Maybe not.

The trend is definitely downward in all aspects. I would be shocked to see salaries to continue spiraling upward in all aspects, this FA season.

 

[dreamcastrocks]

The trend is definitely downward in all aspects. I would be shocked to see salaries to continue spiraling upward in all aspects, this FA season.

It will be interesting to see how the first round draft picks will be signed and for how much.

 

[football karma]

When does revenue sharing and the TV dollars pay out? Isn't it a large lump sum give to the team each year?

I suspect it gets paid in installments during the season--

the networks committ to an amount well in advance -- but they dont get paid until the advertisements that they sell during games get run -- so I suspect the networks dont pay the NFL until around the time they get paid, + or - 30 days or so. Its the way most businesses work.