I just finished listening to Ralph Wilson’s press conference.
I can honestly say that I think the single worst thing that could happen for Western New York’ fiscal resiliancy would be the departure of the Buffalo Bills. Football fans and non-fans could and should agree that one of the main fasteners of the tangled financial web of Western New York is the Buffalo Bills.
The long term ramifications of the Bills’ potential departure, whether it be 1, 2, 5 or even 10 years from now would be devastating, perhaps even unrecoverable.
Ralph doesn’t want to sell the team, but if he loses money (which the new collective bargaining agreement could cause) year over year, he will have no other choice. I honestly think that the new CBA was the worst thing that could have possibly happened for the entire NFL, not just small market teams. At this point in time, the NFL is at its peak popularity, with peak revenues, and monster television contracts. During the NFL’s top state of financial performance, they locked themselves into making approximately 60% of ALL revenue available for player salaries.
People may say “oh, well, thats 60% for 60 guys, and 40% for 1 owner, cry me a river”. Not a valid statement. From that 40% of revenue, the owner must bear ALL of the costs of running the franchise, such as administrative and accounting salaries, utilities, stadium upkeep, depreciation, advertising, employer related benefit costs, pensions, etc. People think of revenue in terms of what an NFL team “makes”; however, from revenue, one must deduct ALL costs of operating in order to arrive at NET INCOME. The owner, might end up with 1% or 1/2% of revenue in certain small market situations if he is lucky.
I would honestly be suprised if the Bills were able to make money under the current CBA.
Hopefully, time will prove me wrong. If not, hopefully Tom Golisano will throw his hat into the ownership ring.
