Regarding the original post, I think the Packer model is sustainable, because they don't really need to make a huge profit. Their shareholder/owners will never receive a dividend, and there are restrictions on selling their shares, so they aren't particularly interested in driving up the share price.
Compare this to say the Raiders; I'm sure Mark Davis lives on a salary and/or distributions from the Raiders.
The Green Bay ownership model
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rhickok1109
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Re: The Green Bay ownership model
They'd simply run it more efficiently and take care not to let expenditures outrun the team's cash flow. The Raiders made an estimated profit of $18 million in 2018. Where was that money when it was time to pay Mack?conace21 wrote:What would someone with more financial sense do? Move the team to a new market?rhickok1109 wrote:[
If they can't somehow scrape by on guaranteed revenue of a half-billion dollars a year, of which only 47% has to be spent on player salaries, they really ought to sell the team to somebody with more financial sense.
Re: The Green Bay ownership model
The chances that Mark sells the team are only slightly better than the odds Al Davis would have sold the team.
Now where was that $18 million? Of that $18 million, between Federal, CA, and the other states the Raiders played in, probably $8 million went to taxes. That leaves $10 million after tax profit. (I'm assuming that the $18 million is on a cash basis of accounting, not the accrual basis where most large companies file their income tax return.)
Khalil Mack's contract had $90 million guaranteed, $60 million due immediately to Mack. So even if Davis didn't withdraw a dollar of the $10 million, he would have needed $50 million more to pay Mack, and another $30 million to put in escrow. I assume owners have a plan for having to shell out $60 or $70 million at once, but from what I've read, Mark Davis has a lot of money tied up in Las Vegas right now. That may put him in a more precarious spot than usual.
Now where was that $18 million? Of that $18 million, between Federal, CA, and the other states the Raiders played in, probably $8 million went to taxes. That leaves $10 million after tax profit. (I'm assuming that the $18 million is on a cash basis of accounting, not the accrual basis where most large companies file their income tax return.)
Khalil Mack's contract had $90 million guaranteed, $60 million due immediately to Mack. So even if Davis didn't withdraw a dollar of the $10 million, he would have needed $50 million more to pay Mack, and another $30 million to put in escrow. I assume owners have a plan for having to shell out $60 or $70 million at once, but from what I've read, Mark Davis has a lot of money tied up in Las Vegas right now. That may put him in a more precarious spot than usual.