Saturday, 16 June 2018

My NFL Chat

I sat this morning and read through some sports news piece where some 'angry' NFL players were saying that the NFL-owners are in some fear stage of Trump, and that's why this whole National Anthem thing is brewing 'hotly'.

After about five minutes, I sat and pondered over this.  I don't know if the players saying this are hyped up on drugs, or just so stupid that they can't envision what happened here.

So my two analogies to make this point:

1.  You know nothing about farming but have heard that raising cattle is profitable and real easy.  You go out with your savings, spending $500,000 on a farm, a barn, plenty of hay for the first year, all the equipment necessary, and 250 head of cattle.  You envision this being real simple and easy.  You sell off a minimum of 80 head of cattle each year, and life is great.  On day one of the new walk out into the field to discover that these cattle are 'wild and aggressive'.  They chase you, with the intent to stomp you to the ground.  Day after day, this goes on.  You live in constant fear of the cattle. The money is invested but this is a 'hobby' that is bringing fear into your heart each and every day.

2.  You buy a great restaurant which turns $250,000 of profit each and every year.  It's a proven money-maker.  As you take over, you hire three new cooks, and in the first six months.....wake up to five accusations of food-poisoning.  You paid a lot of money for this operation, and the public is coming less and less often. 

In this NFL-owner situation.  Most bought into their operations back in the 1970s and 1980s.  A long term investment.  Back three years ago, the Dallas Cowboys were valued at $4.5 billion, and pulling in around $800 million per year (TV deals, sports gear, etc).  The Vikings were valued at $2.4 billion, and pulling in around $400 million a year. 

With the negative talk going on....lesser sports paraphernalia being sold....fewer tickets being sold....fewer people watching, are the teams making less money?  Well....they won't admit this in public.  But you have to figure they've lost 10-percent of the yearly income MINIMUM (maybe more).  Can you consider the Cowboys to still be valued at $4.5 billion?  I question that and would suggest that if they were for sale.....the price would be slightly below $4 billion. By the end of 2020?  If nothing resolves this mess?  Their value might even be near $3.5 billion.

How would you feel if you owned something of value ($500,000), and woke up three years later to find the same item is now worth $300,000? 

The owners aren't afraid of the players, or Trump.....they are afraid that their item of value....doesn't hold the same value, and doesn't make the same amount of yearly profit. 

Where this will end?  At some point, during the signing period of contracts.....a vast majority of players will be offered contracts at 10-percent less than the previous contract.  They will threaten a strike.  This strike? might move the problem onto the next level, and quicken the pace of the sinking. 

No comments: