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“Oakland Raiders and NFL Revenues: The Staggering Truth”

davis kroenke spanos

Last week we first looked at possible stadium venues in Oakland that were realistically being looked at.

https://jimjax4.wordpress.com/2016/01/25/raiders-stadium-sites-update-video-how-to-morph-levis-a-future-nfl-stadium/

We also looked at realistic ways to pay for these stadiums.   The outpouring of positive comments and support for these ideas was amazing with thousands seeing that this could actually be done in a responsible manner. I really appreciate my smart readers.

https://jimjax4.wordpress.com/2016/01/26/how-to-finance-a-new-oakland-raiders-stadium/

Raider Fans Awaken:

First off, Mark Davis is the owner of the Raiders and that isn’t changing. He’s not going to sell and can’t be forced to sell unless he does something illegal. No petition will change that.

Let’s face it; social media has changed everything. Many people refuse to look at actions or facts exchanging them for biased opinions and conjecture. I guess I’m not smart enough to do that because I just go by what I see.   And what I see shocks me.

First off I would love to have a beer and a burger with Mark Davis.   He has that dorky fun type of thing going on. He doesn’t seem like a bad guy.   The reality of the matter though is that as an owner, he’s in way over his head. How many of you in your first 6 decades of life never held a job. Now you own a billion dollar business.

His actions have shown a lot about the Raiders situation. It’s almost as if the City of Oakland is like a guy that has this girlfriend. She’s not hot; been beaten up by life a bit; is kind and loyal as all get out but he now sees there are physically hotter women out there. He spends time and money on Inglewood and San Antonio (Raiders gave 50k to help spend for a city wide questionnaire in 2014 on how much their fans would want the Raiders) but all the while he tells his girlfriend Oakland that he’s not cheating and really wants her. He explains that he loves her and he’s not even looking for better options; he’s just using these as leverage to make sure the City of Oakland is serious in making a commitment. Everyone who believes that is as naive as an 18 year old girl at her first fraternity party.

Most Raider fans are angry and they are getting an education in NFL 101. I love football but that doesn’t mean I love how the NFL treats people. Look at how the NFL treats the refs; they said they can’t afford them to be full time even though bad calls are almost the norm now. The cheerleaders have to sue the NFL just to get minimum wage.   Retired players are treated like old race horses that are no longer needed. And fans are money signs where emotions and loyalty mean little.

Yet some fans are sensitive about their love of football and they will deny facts and defend every move the NFL makes until their dying day even though the NFL doesn’t care about anyone else but their profits.   Reminds me of some that blindly defend political parties. You can love a sport but still be honest about it.

Mark Davis acts like Oakland isn’t even on his radar at times.   You hope that he wakes up and puts the same effort into Oakland that he has into other cities.

How Do NFL Teams Make Money?:

The NFL is now the richest professional league in the world.   The NFL has 3 types of revenue.   National Revenue or Revenue Sharing; which has television revenue, national ad revenue and general ticket sales along with other miscellaneous items. This adds up to about 61% of NFL teams revenues.

The second form of revenue; which is NOT shared by the teams; is Territorial Revenue. This is money made anywhere near the radius of the teams home city. It could be in the form of in person or online merchandise sales, local television, radio and tv ad revenues, naming rights to the stadium and other things. This is also a large chunk of the teams revenue. This includes PSL’s.  Below is a list of the PSL revenues. Dont’ kill the messenger.

http://www.mprnews.org/story/2012/11/15/sports/nfl-personal-seat-licenses-compared

The third which is also not shared; and a far third at that; is ticket revenue. Why do you think teams are so obsessed with getting new stadiums? Well this is why. Teams share general ticket sales but KEEP all revenues made by luxury suites, club seat ticket sales, parking and any type of luxury boxes. While fans gave a salute for New England Patriot owner Robert Kraft for not charging a PSL (personal seat licenses) to the fans on his stadium, they forgot to add that he tore down 1500 end zone seats (which is revenue that is shared among NFL teams) and put in a huge luxury/club suite area. He pockets millions without sharing.

I went on the Dallas Cowboys web site and asked for suite information.   I counted 116 luxury suites alone in Dallas’ AT&T stadium and that doesn’t count club seats. Some of these suites are $30,000.00 per game and ALL of this money is NON revenue sharing and goes straight into Jerry Jones pocket.

Let’s also not forgot PSL’s. It’s literally free money. It’s like what Costco does and teams make so much money off of it you can’t count it.

Once PSL’s are paid for it’s predicted that the 49ers will make between $310-400 million just on PSL’s. The most expensive PSL in Dallas will cost you $150,000.00 PER TICKET and they expect between $625-675 million in PSL revenue once they are paid for.

Oakland Raider Revenue:

The NFL has always been extremely secretive about their profits.   They’ve lied a lot about them in the past before the internet. The number for the Raiders or any team is really a guess. Forbes gives the best estimate. As many have stated, the Raiders are worth $1.4 billion dollars and that the Davis’ family is worth $500 million. Again, San Diego and Oakland do not have businesses so they are considered the poor teams in the NFL. While most of the owners are worth billions, the Davis’ and Spanos’ families only have their NFL teams. Now dry your eyes; somehow these guys will make it financially.

Oakland Raiders Revenue History (2)
Oakland Raiders Revenue History

Last year Forbes stated that the Raiders made $285 million dollars gross. They made $40 million in ticket sales and paid out $158 million in player salaries. Their operating costs were the lowest in the NFL but again, the Raiders would not disclose the number. In contrast the Dallas Cowboys made a staggering $680 million. The operating costs were #1 as well but no one knows the exact number. The Cowboys are worth 4 billion dollars and are considered the #2 most valuable sports franchise in the world only behind Spain’s soccer empire, Real Madrid.

I read 5 financial online publications and 7 sports publications and got 12 different financial numbers and ideas on NFL revenues. On average most believe the profits for the lower teams like the Raiders are between $25-40 million net profit per year and that doesn’t include the appreciation of the teams which is in the millions. It is believed that this is the first year in NFL history that they made over $14 billion dollars in one year.

Roger Goodell has stated that his goal is for the NFL to make 25 in 25; $25 BILLION per year by the year 2025. They still dream of expanding to London in the next two decades.  The NFL would be considered the 140th richest COUNTRY in the world right now. They could finance several trips to space and buy several countries. That’s scary power.

Green Bay Packers; The Key To Knowing the Profit:

Remember that before the internet, the NFL lied so much about revenues that it was a running joke in the financial community.  NFL teams still don’t have to disclose financials but the Green Bay Packers are owned by the public so they are the only team that actually has to state their revenues but again, that’s shared revenues only. If you add up their share with the rest of the league, the NFL made $7.2 Billion in money that was shared by the teams. Again, this doesn’t include territorial money.

In the past decade or so the Packers have spent $320 million in upgrades to their stadium and surrounding area. They have built stores to sell Packer gear online and in house and have made a bundle. They also have renovated the stadium and they are building a “Titletown” area which will have shops and other ways to show off the tradition of Green Bay and to give a museum and fan experience to their faithful. They now are in the process of also upgrading their club and luxury suites. Green Bay is a classic Midwest team and is obsessed with giving their fans the utmost they can while turning a huge profit.

In the past 3 years, the Packers revenue has gone up from $300 million to $375 million. Their net profit last year was $39.4 million. Even with putting over $300 million into renovations and upgrades, the Packers have said financially they’ve never been stronger.

Final Thoughts:

The extreme greed of the NFL is unsurpassed and isn’t going to change.   Billionaires want one thing; more billions. Anyone thinking differently has never owned a business. I worked for a fortune 500 company that was the biggest money making medical company in the U.S. To them though it still wasn’t enough. They were caught in a insurance scandal and my CEO was arrested by the Department of Justice and it was reported on national television.

What does this all mean? It means that owners are not loyal to cities or to fans; they are loyal to what will make them money. I’m glad that fans are getting it. You can still love your teams and cheer for players but also realize this isn’t family; its business. In my opinion, if Mark Davis wanted to they could figure out a stadium in Oakland. Apple is making over $200 billion a year and this is chump change to many tech companies.   Just like the 49ers, there isn’t a door I would not knock on.  I hope he learned from the mistakes of his father Al Davis. You can only go back home so many times before no one is there waiting for you at the door.

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Colombia & Soccer Rises Above Violence, Pain, & the loss of Andres Escobar For Redemption.

andres escobar

 

“Life doesn’t end here”.  

Andres Escobar, Colombia footballer

It still hurts today.

When you say the name Andres Escobar to a longtime soccer fan, immediately the smile will come off of their faces and a sadness will be seen.  The pain is still there for the memory of the murder of Colombian soccer star Andres Escobar even 20 years later.

In the 1994 World Cup held in the U.S., there was one team that everyone wanted to see and that was Colombia.  They were like rock stars with the likes of Carlos Valderrama, Carlos Rincon, Andres Escobar and so many others.  From the famous scorpion kick from their goalie, to the fun and amazing way they played, Colombia was definitely the team to watch.  Defensive star Andres Escobar at the age of 26 was ready to sign a large contract after the World Cup with famous Italian team AC Milan.  His dream of marrying his Fiance Pamela Cascardo and living in Italy to play soccer was coming true.

In an amazing 26 international game stretch before the World Cup, Colombia lost ONLY one game.  In the World Cup qualifying matches they gave up an unreal, 2 goals.  They were on fire dominating the World Soccer scene.

To qualify for the World Cup in 1993, they needed to tie Argentina.  Instead they gave what I believe is the worst loss for Argentina in Argentina, 5-0.  What was amazing is video shows as a sign of respect, the Buenos Aires fans giving rounds of applause to the Colombians after the game.  It placed Colombia for the first time on the world stage of soccer.  Pele and many others announced that Colombia would win the World Cup in the U.S.  The country Colombia partied like rock stars and their passion was amazing.  For once they would shed the reputation of being a violent and out of control country, and gain the respect they wanted.

At that time the rise to prominence for Colombian soccer was linked mainly to one thing; drug cartel money.  Colombia had never been a world power.  The three biggest drug Cartels, owned teams in the Colombian soccer league.  Soccer was the perfect way to launder money that they had gained illegally.  With that money they now could afford the great fields and players that were needed to make them a world class power in soccer.  One of the drug Cartel leaders was Pablo Escobar.  He was so powerful and rich that Forbes Magazine had him as one of the richest men on earth.

A house is only as good as it’s foundation and when you have a foundation built on drug money, only pain and violence will follow.  That’s what happened to Colombian soccer.  Colombia was a mess in general with more murders being committed per capita there, than anywhere else in the world.  Public officials and politicians were bought off, and like many players said, you couldn’t trust anyone.

Pablo Escobar ran for office to avoid extradition to the U.S. for his drug running; and he won!  He and the other cartel leaders used Soccer to launder the money by lying about players salaries and bonuses and also about gate receipts and ticket sales.  Pablo Escobar did a lot for the poor, building housing and soccer fields and helping out the little guy. He also had public officials murdered and after one match where he didn’t like a referees call, he had the soccer referee gunned down in a parking lot after a game.  Much like Al Capone did in Chicago, it created a love for him like a modern Robin Hood to cover up for the violence and pain that he created.  Eventually though Escobar was killed and even a few of his family members were slaughtered; in front of their wives and kids in some cases; right before the World Cup would start.  After he was killed Colombia was in a violent chaos.  No more order in the underworld.

The stress on the Colombian players was now overwhelming.  Andres Escobars’ great friend and teammate Chonto Herrera was told the day before their World Cup match that his brother was murdered.  They began to worry about their own families safety.  Some players began saying they now had to win or wonder what would happen back home.  Andres shy smile was now gone.  In an interview he said he finds peace by trying to read at least a little bit from the Bible every day.  He found comfort in having a picture of his late mother and his fiance Pamela Cascardo in his Bible.

Andres was unlike any 26 year old you’d ever know.  While many were party animals, his faith was a foundation in his life.  He also loved his country and the poor.  His family talked about him going to stores and buying toys and driving through the city giving them away in poor neighborhoods.  Even before he signed a big contract, he set up scholarships for poor and needy kids.  His father was a banker and he set up foundations to help the needy.  His whole family had hearts of gold and his heart was no different.  He was handsome, kind, humble and felt for those in need.  Everyone loved him.

In the first game of the World Cup the joy was out of the faces of the players of Colombia.  In a stunning match, Romania beat Colombia 3-1.  The World was shocked.  Their next game was against the U.S. who they had never lost to and who had never been a world power in soccer.  Unfortunately the violence at home was getting worse and so was the stress of playing.  Also there were rumors that the Colombian cartels had lost millions in bets that were placed for Colombia to beat Romania and many were not happy.  There were rumors abound and you could see the fear and the pain in the players faces.

Against the Americans the impossible happened.  On a simple cross by John Harkes of the U.S., Andres tried to stop the ball and he accidentally kicked it into his own goal.  It was a dreaded moment that I will never forget.  I told my friends right then and there, they are going to kill him.  My friend said it’s just a soccer game and I was dumb to think that.  Even when I was a kid I loved history and cultures and I just knew growing up what some cultures could and would do.  A chill goes up my spine right now even writing this.  I still feel the pain of that moment.  I see Andres face on the field knowing what he had done and the possible ramifications.  One of his teammates commented that you could see the fear and the pain in Andres eyes after that moment.  In irony, Andres sister said that the second Andres did the mistake, her 8 year old son became upset and said that they are going to kill Andres.  She said that people loved Andres and that he would be safe.  Young people know more than what adults think.

Andres own goal made it U.S. 1 Colombia 0.  Another goal followed and after a late goal by Colombia the U.S. had stunned the world and beaten them 2-1.  Colombia beat the Swiss 2-0 in their third game but with Romania beating the U.S., it meant Colombia would go home.

There are conflicting reports but there was supposed to be a trip with Andres and his family where they would visit parts of the U.S. Andres didn’t go and he came home.  Friends and teammates say that he was crushed by his mistake but he answered all of the media’s questions.  In time the people of Medellin; his home city; were very supportive and caring.  He began to feel better.

On one night Andres was asked to go to a club.  Many of his teammates begged him not to go but he said he didn’t want to hide and that he would be alright.  In a club in Medillin, the Gallon brothers; notorious Colombian cartel members; began to mock Andres relentlessly. This upset Andres greatly saying he just made a mistake and he was sorry for it.  After a heated argument Andres left the club.  In a chilling video in the parking lot, Andres was gunned down by cartel bodyguard Humberto Castro Munoz with a .38 caliber gun.  His friends saw the shooting and rushed Andres to the hospital where he died 45 minutes later.  Andres girlfriend said that the murderer was laughing and yelling goooooooooaaaaaal when he shot Andres.  The World Cup was still going on and the soccer world was angered and outraged.  Colombia was in turmoil.

Andres death was too much for the country to take.  The grief now was unconsolable.  One famous Colombian writer said, “for the first time in my life, I’m ashamed to be Colombian”.  The country gave bodyguards to players with some having up to 40-50 of them to protect them and their families.  One players child was kidnapped.  The entire country was in pain and hope was hard to find.

The soccer team would never be the same.  Many retired or just played abroad.  Most vowing that they would never play for Colombia ever again for what happened to them and Andres.  It was rumored that after days in jail, the Gallon brothers paid off the courts with 3 million dollars in cash and were set free.  Murderer Humberto Munoz was the fall person and he did only 11 years of his 40 year sentence.  He was let out for being a model prisoner.  Andres Fiance and family were outraged.

Colombian soccer began to fall off the map.  For years it struggled.  Fans stopped coming; the pain was too great.  In 2010 at the owners meeting for the Colombian soccer federation, 14 of the 18 teams were now near bankruptcy.

Fast forward to the last 4 years where there has been a form of redemption.  The Colombian soccer team is now back at the World cup.  With a talented squad, they are now trying to prove again that their reputation for being a violent country based on drug money is wrong.  Their past haunts them.  I have some Colombian friends and they are a very kind and passionate people with great pride.  They long for people and other countries not to judge them and to get to know them.  They are also honest about their past and hopeful for their future.

A statue of Andres is now at a park named after him where soccer fields are.  Andres always dreamed of having soccer fields all over for every kid to enjoy.

Andres’ last written words were published in newspapers everywhere.  They were, “life doesn’t end here”.

Even with the loss of his physical life, Andres is still touching people today.  I hope through his memory, along with the soccer fields and parks made in his honor, that more people will support Colombia’s attempt at becoming the peaceful nation that Andres dreamed of.  I know that for millions of soccer fans in Colombia and all over the world, no one will ever forget the great Andres Escobar.