What is a fair profit for an NFL owner?

[channtheman]

If an NFL team is worth 600 million (http://wiki.answers.com/Q/How_much_d...NFL_teams_cost - I know this isn't research, it was the first article I could find on a 5 second google search) and they make a yearly profit of just 5% that is about 30 million. I know absolutely nothing about what should be expected to be made in regards to percentages in businesses but I would think a profit of 5-10% of what it is worth yearly sounds about right. So a team like the Vikings worth 600 million should expect a yearly profit anywhere from 30 million to 60 million.

[packrat]

http://www.usatoday.com/sports/footb...finances_N.htm Packer profits went from 34 million to 20.1 to 9.8 million. Someone with $600 million to invest would certainly target a 10% return and would be considered a lousy manager if they only got 5% so something in the $60-30 million range should be considered reasonable. If the owners were to increase their share by the $500 million that has been recently proposed, that would increase earnings per team by about $15 million a year and would get the Packers into the range that should be considered reasonable.

[bobblehead]

http://www.usatoday.com/sports/footb...finances_N.htm Packer profits went from 34 million to 20.1 to 9.8 million. Someone with $600 million to invest would certainly target a 10% return and would be considered a lousy manager if they only got 5% so something in the $60-30 million range should be considered reasonable. If the owners were to increase their share by the $500 million that has been recently proposed, that would increase earnings per team by about $15 million a year and would get the Packers into the range that should be considered reasonable.

As I said above. 10% is not enough return to get me to put in the work. Reassess and try again.

[Lurker64]

If an NFL team is worth 600 million (http://wiki.answers.com/Q/How_much_d...NFL_teams_cost - I know this isn't research, it was the first article I could find on a 5 second google search) and they make a yearly profit of just 5% that is about 30 million. I know absolutely nothing about what should be expected to be made in regards to percentages in businesses but I would think a profit of 5-10% of what it is worth yearly sounds about right. So a team like the Vikings worth 600 million should expect a yearly profit anywhere from 30 million to 60 million.

Here's a better source for the value of NFL teams. Forbes does this list yearly: http://www.forbes.com/lists/2010/30/...ions_Rank.html

The top 16 NFL teams are worth a billion or more. The least valuable team is $725 million. So your 600 million number is a significant underestimate.

[packerbacker1234]

The deal breaker here is that, bottom line, the players themselves are employees. Since when do employees have the right to dictate how much their Employer makies? They don't. Their employer pays players very well for what is what, an average life expectancy in the nfl of 8 seasons?

I mean, you get retirement money, help with some of the medical costs - oh and you make MILLIONS when you do play, usually far more money than the rest of the world is going to make in their lifetimes. Not only that, smart people reinvest a lot of their money and own a couple successful restaurants or whatever so they have continual income after they retire.

So, why do the players even have a say? Because it's an allowed Monopoly? They can ask for more of the pie all they want, but the owners own the team because it makes them money. A lot of money. If they weren't making a lot of money, why would they bother to keep the team?

Yes, Owners may make like 100+ million dollars in profit a year. What's the problem? The players aren't exactly poor. Even the bottom feeders on the roster nad practice squade are making what some DOCTORS make, and last I checked Doctors are considered a upper echelon income source in most communities.

What this is like is Microsoft staff revolting against Bill Gates because he makes a shit ton more money thatn they do. Guess what, he should. It's HIS business, not THERES. If players wnat to complain about money and getting paid more, they can go sit out. There are thousands of people who will step in and play in the nfl for 100k a year with full medical coverage. Players make millions, and then if they become stars even more from investors and companies like gatorade and nike.

The salary cap goes up every year, even if the income may not be rising. So, more money continually was going to payroll. What's the real issue in the end? Owners are going to make a lot of money. That is why they are the owners. Players ALREADY make a lo tof money. "they profit too much off our work". BS. You're paid very well so they can in turn make money from THEIR business. Your an employee - deal with it.

No idea how AP can bitch at all. He should be making a lot of money. I don't get how any of the star players complain.

[bobblehead]

If an NFL team is worth 600 million (http://wiki.answers.com/Q/How_much_d...NFL_teams_cost - I know this isn't research, it was the first article I could find on a 5 second google search) and they make a yearly profit of just 5% that is about 30 million. I know absolutely nothing about what should be expected to be made in regards to percentages in businesses but I would think a profit of 5-10% of what it is worth yearly sounds about right. So a team like the Vikings worth 600 million should expect a yearly profit anywhere from 30 million to 60 million.

Why should I start a business, risk my capital, burn out my mind for 5% when I can invest in condos and make 7%? You have a skewed idea of what a business should make. In fairness to you, you admitted as much, right before imposing judgement on what sounds about right. Try 20% or more. Definately more if you incurred debt to build said business.

[Smidgeon]

Why should I start a business, risk my capital, burn out my mind for 5% when I can invest in condos and make 7%? You have a skewed idea of what a business should make. In fairness to you, you admitted as much, right before imposing judgement on what sounds about right. Try 20% or more. Definately more if you incurred debt to build said business.

I think this is incredibly key. Too few people are pointing this out. The owners who have invested heavily in a team, I think, should be making way more than the top employees.