I posted this in another thread and thought you guys might be interested in discussing. There is a lot to think about here and the future of this franchise and the Miami area. Ross bought the team in 2008 for 1.1 billion. Today the team is worth 1.074 billion or a loss of 26 million. Small money in the big scheme, but lets hope Ross is as large a fan as we all thought. Ross certainly is a business man and I do not know many business men who go around losing 26 million a year. I wonder how this effect's us outright. Without gate receipts we don't have revenue. Without revenue we are going to have inferior talent. Not making excuses just wondering what your thoughts are. If this is possible then it is a catch 22, damned if you do damned if you don't. Are we mediocre with inexperienced coaches and inferior talent because the stands are empty???? How long is this going to last for. Why is Ireland holding the bank so to speak with 30 million in reserve? Is our team going to end up moving 70 miles north or worse yet to another state or city? Please people help me out here. http://www.miamiherald.com/2013/04/10/3336415/debt-stadium-costs-to-hand-miami.html Consider this: Miami Dolphins Team Value1 $1,074 M ithout revenue Team Value calculated August 2013 Follow (2) At a Glance Owner: Stephen Ross Championships: 2 Price Paid: $1100 M Year Purchased: 2008 Revenue2 : $268 M Operating Income3 : $24.8 M Debt/Value4 : 36% Player Expenses5 : $137 M Gate Receipts6 : $53 M Wins-to-player cost ratio7 : 87 Revenue per Fan8 : $18 Metro Area Population: 5.8 M Forbes Lists #16 NFL Team Valuations Numbers Valuation Breakdown Sport9 $722 M Market10 $152 M Stadium11 $145 M Brand12 $58 M Profile The Miami Dolphins went 7-9 last season, and Sun Life Stadium was the emptiest venue in the NFL by stadium capacity. The team was on the verge of signing a deal in May with state and local officials to give the stadium a $350 million facelift, but the agreement fell apart at the last minute—leaving the future of the team in question. The mayor of Miami-Dade county had agreed to a deal that would have raised hotel taxes to partially pay for stadium upgrades, but the state legislators tuned the proposal down. The deal’s collapse deflated Miami’s hopes of hosting the Super Bowl in 2016, which was given to the San Francisco 49ers new Levi’s Stadium instead. When asked whether the Dolphins would consider moving 70 miles north to Palm Beach, Dolphins CEO Mike Dee told the Miami Herald the team is “open minded to all long-term solutions.”
First... keep in mind that gate revenue is only a small portion of total revenue. The real revenue is in the TV money... which is shared among all 32 teams. 2nd... factor in that this is a toy for Ross. Maximum profit is not why he bought the team. He's making money, regardless of what that estimated value says. He has a rare and coveted badass toy that also happens to make him money. Also, with the salary floor that was recently put in being as high as it is... concerns about payroll are misplaced. He has to spend near the cap even if he didnt want to...
great thread i was wondering about that myself . i know if I spent 26 million on a offense that cant score more then 24 points i would go ballistic . i noticed the last home game the stadium was 1/4 full or less You would think that MR Ross is gong to notice this . if not he might be forced to sell the team because the nfl will get involved and force his hand.
What is the common denominator..for the canes and the dolphins..why are both programs declining.. Just poor play on the field right....right.. When you have a poor venue, you stand to lose..
I was reading between the lines. Last yr when Reggie wasn't productive, they wasted no time and got rid of him. Same thing with Dansby, Long, Vonte and others. Is money playing a factor. I know it seems counter intuitive with a billionaire owner, but people have loss their jobs for less.
But isn't this a long term problem? We have stadium issues and declining revenue. Not a good picture. Unless Ross is willing to throw money at the problem I don't see how it gets remedied any time soon. Its a conundrum wrapped in a riddle.
Ticket revenue is not as big of a deal as people make it out to be. The biggest problem for the Dolphins financially is the amount of debt they're carrying on the stadium. Sent from my HTC One using Tapatalk
Ticket revenue is about 20 - 25% of the revenue. we currently are only generating about 1/2 that amount. It's everything else that also adds up Parking, tax revenue, hot dogs, souvenirs, etc When the team is operating in the red it is not hard to pull into the black with the added revenue. Helps convince others a new stadium is beneficial or to pay for the current one
losing 26 million from 2008 until now is not 26 million a year though, that would be alarming no doubt
Most NFL revenue is shared, and because of that, most teams have about the same amount to spend. As was mentioned also, there is a salary floor that teams must spend to. Its the beauty of the league and one of the reasons that the NFL is by far my favorite sport. The teams that win do so because of good coaching, good talent evaluation, and a little luck.
Something is only worth what someone is willing to pay for it. While the estimate at this time is that the Dolphins are worth less than Ross paid for the team. The reality is that if Ross were to put the team up for sale today, I have no doubt he could sell it and walk away with a very nice profit. There are only 32 NFL teams and I have no doubt there are individuals with the financial resources who would be quite willing to pay Ross more for the team and stadium then he paid Huizenza. Also with all the tax breaks Ross gets for owning the team at this time, I find it hard to believe that he has actually lost any money on a yearly basis as an NFL owner. Ross had no problem giving well over a hundred million dollars to the University of Michigan, just so he could have a building named after him. So I don't think we have to worry about him going broke because he owns the Dolphins and Forbes states the team is worth less now than when it purchased it. I personally don't believe there is a single NFL owner who is losing money at this time. I remember Marlin ownership crying poor mouth, just so they could get more funding from the tax payers to build their stadium. After the stadium was built, it was reported that the Marlins ownership had lied about their profits and they had actually made millions of dollars in profits while playing their games at Sun Life stadium. I don't think Ross is the same type of owner as Jeffrey Loria, but I also don't think he is losing money owning the Dolphins and he certainly has the financial resources to pay for all the renovations he desires for the stadium. In fact I am sure that any money he puts into renovating the stadium will be totally recouped once he sells the team in a few years.
This is the last thing we should be thinking about, long term investment depending on the talent in the team, what would the valuation of the Pats be in 3 years with Brady maybe close to retirement. Ross already made a profit on his purchase, the NFL is a monopoly no way you loose if you are in.
No, it's not a problem, because you're under the misconception that an NFL team's sole and primary revenue is whatever people pay on game day. It's not.
