17 replies to this topic

[warthog]

Jerry Jones: Revenue sharing is 'on it's way out'
Posted by Will Brinson

The matter of sharing revenue is a big deal for the NFL and NFLPA. In fact, most people would probably agree it's the biggest deal with respect to the current labor negotiations.

However, the issue of revenue sharing between owners is also a tremendous obstacle that the owners have to overcome before finding common ground with the players.

And if you think it's not a problem, then you haven't heard Cowboys owner Jerry Jones talk about how the rest of the owners are helping to pay for the Vikings new stadium.

"Right now, we are subsidizing this market," Jones said, via the St. Paul Pioneer Press. "It's unthinkable to think that you've got the market you got here - 3.5 million people - and have teams like Kansas City and Green Bay subsidizing the market. That will stop.

"That's going to stop. That's on its way out."

As Liz Mullen of the Sports Business Journal noted on Twitter, there's a reason why this subject has not been written about much despite being an important matter: the owners aren't going to budge off their stance.

Well, at least the rich(er) ones anyway: Jones and the rest of the owners with extraordinary deep pockets were talked into revenue sharing for the first time in the last CBA deal.

And such distribution of money, along with the revenue split given to the players, was precisely why they opted out of the deal that they agreed to back in 2006. (Ironically, Mike Brown of the Bengals and Ralph Wilson of the Bills were the only two owners to oppose the deal.)

It's also one of the unstated obstacles to a new CBA; you might hear talk from ownership of player factions during this process, but the notion that the owners are completely unified is just silly.

There are owners who want more money from other owners, and there are owners who don't want go hand out additional money simply because they're more committed to generating revenue by investing in their product.

From a negotiating standpoint, this is problematic, because the various factions of owners have differing viewpoints on splitting up the $2 billion pie of revenue.

But it's something that'll have to be bridged before the NFL and NFLPA can reach a deal; and Jones' hardline stance could be an indication that everyone's on the same page.

Or an ominous forewarning that there's some clear-cut dissonance amongst owners on the topic.
http://eye-on-footba...475988/30389726

[warthog]

Jerry Jones Steinbrenner and his attempt to make the NFL more like Major League Baseball. And we all know how well that is working.

[The_Jonas]

warthog, on 03 July 2011 - 09:55 AM, said:

Jerry Jones Steinbrenner and his attempt to make the NFL more like Major League Baseball. And we all know how well that is working.

Well, he's got a point....

Quote

"Right now, we are subsidizing this market," Jones said, via the St. Paul Pioneer Press. "It's unthinkable to think that you've got the market you got here - 3.5 million people - and have teams like Kansas City and Green Bay subsidizing the market. That will stop.

How much did the league pitch in to help with KC and GB's renovations?

[milkman]

Jerry Jones is going to make as much money as he can over the next few years.

But he, and others like him are going to kill the golden goose.

[HG]

milkman, on 03 July 2011 - 12:39 PM, said:

Jerry Jones is going to make as much money as he can over the next few years.

But he, and others like him are going to kill the golden goose.

Well I blame him. Its not the rest of the leagues fault he built a palace.

[OctoberLady]

HG, on 03 July 2011 - 01:40 PM, said:

Well I blame him. Its not the rest of the leagues fault he built a palace.

Monstrosity is a better word for it.

[milkman]

HG, on 03 July 2011 - 01:40 PM, said:

Well I blame him. Its not the rest of the leagues fault he built a palace.

It's not what he's built.

It's how he conducts his business in the NFL.

The owners created a system back in the 60s that laid the foundation for what has become this huge money making entity that hs been enjoying unparalelled popularity in the sports world.

Jones has underrmined that system by seeking separate endorcement deals, and finding new streams of revenue that he has been unwilling to add in to that system, and suing to maintain that separate revenue.

He and others like him (most notably Dan Snyder and Jerry Richarson, but others, as well) are looking to eliminate other streams of revenue from the revenue sharing plan that the NFL has used to create this monster, and they are hoping to some day eliminate the revenue sharing altogether.

When that happens, the Chiefs, Bills, Lions and Packers of the world will not be able to compete with the big market teams.

[mdchiefsfan]

milkman, on 03 July 2011 - 06:13 PM, said:

It's not what he's built.

It's how he conducts his business in the NFL.

The owners created a system back in the 60s that laid the foundation for what has become this huge money making entity that hs been enjoying unparalelled popularity in the sports world.

Jones has underrmined that system by seeking separate endorcement deals, and finding new streams of revenue that he has been unwilling to add in to that system, and suing to maintain that separate revenue.

He and others like him (most notably Dan Snyder and Jerry Richarson, but others, as well) are looking to eliminate other streams of revenue from the revenue sharing plan that the NFL has used to create this monster, and they are hoping to some day eliminate the revenue sharing altogether.

When that happens, the Chiefs, Bills, Lions and Packers of the world will not be able to compete with the big market teams.

well that's a very true and depressing thought.

[autodrummer]

Another great thing that Capitalism is destroying.

[AssKickingBoots]

autodrummer, on 06 July 2011 - 02:22 PM, said:

Another great thing that Capitalism is destroying.

That depends upon if you view the NFL as one big business or 32 still fairly big businesses.

Jerry Jones obviously believes it's 32 different businesses. I don't think he's entirely in the wrong here, especially if you look at it from his vantage point. Problem is, his vantage point is NOT good for the NFL as a whole, and will probably bring the league down. I have a feeling that if the league goes down some, he'll feel it down the line, whether or not he recognizes the reason.

[The_Jonas]

autodrummer, on 06 July 2011 - 02:22 PM, said:

Another great thing that Capitalism is destroying.

Capitalism is what allowed Lamar Hunt to build a competing league and pave the path for the great and wonderful franchise who's colors you wear.

[pentekno2]

The_Jonas, on 06 July 2011 - 05:07 PM, said:

Capitalism is what allowed Lamar Hunt to build a competing league and pave the path for the great and wonderful franchise who's colors you wear.

The NFL as a whole entity from the view of the outside world is pretty much a single Capitalistic entity, but the way that its been structured on the inside, and what has given us such an even competitive balance is the socialistic nature of the inner workings of the business.

[jambal67]

The_Jonas, on 03 July 2011 - 10:10 AM, said:

How much did the league pitch in to help with KC and GB's renovations?

Or the troubles in St. Louis? Oh wait, I forgot, the state of Missery and Enterprise will bail them out.
But, I agree. Without revenue sharing and salary caps, we'll have MLB. We have, at best, a fan base of 4M folks, ready to watch the Chiefs and buy merchandise. Crap, how many folks are in the Boston area alone? How many of your Congressmen (and women) are attending L'il Danny's team games? Teams like Green Bay will always survive as they are the Packers. Chicago has the Bears and a metro of almost 10M . I personally love the Cowboys, have since 1964, but I can't stand Jerry.

[AssKickingBoots]

pentekno2, on 08 July 2011 - 01:22 PM, said:

The NFL as a whole entity from the view of the outside world is pretty much a single Capitalistic entity, but the way that its been structured on the inside, and what has given us such an even competitive balance is the socialistic nature of the inner workings of the business.

But that's because football teams don't really compete against eachother for money, they compete against other sports and entertainment venues for people's expendable income. Each individual team still behaves entirely like most other businesses, it's just a matter of how teams interact with eachother do they really care about leveling the playing field.

I'm not sure if you're trying to say it is, or autodrummer for that matter, but this isn't the one case in which communism has ever worked. It's still very much one big ass capitalistic business ruling over 32 big businesses.

[The_Jonas]

AssKickingBoots, on 11 July 2011 - 05:25 PM, said:

But that's because football teams don't really compete against eachother for money, they compete against other sports and entertainment venues for people's expendable income. Each individual team still behaves entirely like most other businesses, it's just a matter of how teams interact with eachother do they really care about leveling the playing field.

I'm not sure if you're trying to say it is, or autodrummer for that matter, but this isn't the one case in which communism has ever worked. It's still very much one big ass capitalistic business ruling over 32 big businesses.

He was just trying to take a jab at Capitalism by treating the NFL as some kind of microcosm of the world's economy. It's a comparison I see more and more of, but that holds absolutely no water for reasons you barely even touched on.

I hate to point this out, but Socialism and communism isn't exactly leading to financial prosperity across the world as most of these folks would have you believe. Just because college professors and hipsters SAY socialism is leading to world wide prosperity doesn't make it true. I can call myself Mr. Rogers and I'm still Jonas. The Euro's value is plummeting and the entire continent is facing a financial problem even bigger than ours. China's economy is having all kinds of problems as well stemming from it's system. .

It's this 'the grass is always greener' mentality. If we were a socialist country, he'd be begging for capitalism.

A business that SELF REGULATES is not socialism, but free market haters will never understand that.

[warthog]

I don't think there is much argument that Capitalism works, it was what won the Cold War for the West. While the Communist countries relied on brute force to control other countries, the West relied on Capitalism and democracy. Brute force can hold a country down for only so long, as we all saw, but free markets and free ideas will win out in the end when the hearts and minds of the people desire something better. The United States was able to flood other countries with financial aid as incentives to remain free, the Eastern bloc could not.

[AssKickingBoots]

I didn't get any deeper into it because I didn't want to turn this into a political thread, but yes, well said, Jonas and Warthog. Our mess has nothing on Greece, and it's been a socialistic mentality that got them there.

Back to the original discussion. I'm not against a level playing field for the teams, but I am against trying to force equal results. It's a blurred line as to where one starts and the other stops.

[ChiefInAdel]

AssKickingBoots, on 12 July 2011 - 08:45 AM, said:

I didn't get any deeper into it because I didn't want to turn this into a political thread, but yes, well said, Jonas and Warthog. Our mess has nothing on Greece, and it's been a socialistic mentality that got them there.

Back to the original discussion. I'm not against a level playing field for the teams, but I am against trying to force equal results. It's a blurred line as to where one starts and the other stops.

I have a problem when markets that cannot support a team keep getting money thrown at them to keep them solvent enough to keep them from moving (Jax and Buffalo I'm looking at you)

While KC is a "smaller market" type of team, there is still a large enough fan base to keep it going without substantial help from other teams...at least that's my impression thus far.