Edmonton 2006 year end Statement ($$)(problems)

CFL Talk
#1

Does anyone else think They are a good bit higher then they should be(in terms of expenses)

Comparing them to the Bombers(both in 2005) the bombers spent:
the Bombers spent $6.6 million on football operations (player/coach salaries, scouting etc.)
$2.56 million on marketing and administration
$1.03 million on stadium occupancy

Total of 10.19M

That’s 2.5M Less then the Eskimos in 2005 and like 2.9M less then 2006.

How are the Eskimos spending:
OVEr 7.62M on player expenses(training camp, Coaches, Players, Away games, Equipment)(1M more then the blue)
3.19M in Marketing, admin, sponsorship(500K+ more then bombers)
community donations are good expenses so no problem
Home game expenses are 60% of game day Revenues so no problem.(although one does wonder how you spend 150K a game could be the grass field it does cost a good chunk of change)

But Dang, 6.1M in 2006 spent on JUST player and coach Salaries, not Training camp or Traveling expenses here. 4.05M cap and they went how much over… 500K? so they spent 1.5M on Coaches? or is it just 1M over the cap and 1M on coaches(9 guys) atleast their all making good money(over 6 figures)
and players make an average of over 6 figures too.

750K on TRAINING CAMP/Recruiting?
even with 76 Veterans in Training camp(an Illegal number) Training camp costs are only: 675$ a week * 3 weeks * 76 players = 154K Add two extra weeks and it’s 260K(about) that’s still just over 1/3 of their expenses. Now I’m no expert at Travel costs here but Going to Scout College Games does not Cost 500K$ are they(Edmonton) Bringing in many speciality coaches for TC and giving them 25K a pop for 3-4 weeks?
are the Eskimos buying Special stuff for Equipment?
Under the rules of the CBA they should not be spending nearly 12.5-13M a year, 11M should suffice, they could use the extra to increase their Stabilization account, stabalize the League, improve the community(and their image), improve Amature sports.

Website with all Edmonton Info:

[url=http://www.esks.com/media/pdf/other2007/EdmontonEskimoFootballClub-CondensedConsolidatedFinancialStatements2006.pdf]http://www.esks.com/media/pdf/other2007 ... ts2006.pdf[/url]

Anyone know what their spending on?

#2

The Esks have had to stabilize other teams and the league for years. They are obviously the most profitable team in the CFL, and already have a very large amount of money from the sale of the trappers a few years ago. The natural grass field does cost a LOT of money to maintain. The team is commited to staying under the salary cap this year, so I don't see any reason to complain about their expenses.

#3

Also with game expenses, because you have the largest stadium you have more staff, higher upkeep etc.

#4

I dont believe the Eskies own commonwealth therefore they dont have to pay staff or upkeep, only rental!

#5

...whether you pay those expenses directly or through the rental agreement it's still a cost...

#6

....everyone knows Huey had spent mega bucks over the years ...securing all of those titles....good on them ..IF you have the cash...BUT NOW...we'll see which team rises to the top ..on a level playing field ..SMS....it won;t be so easy to offer up those big contracts....over and above other teams....without paying a price....it'll be interesting..... :wink:

#7

The cost of entertainment. Good on the Eskimos. They have done a great job of entertaining their fans. I hope they continue. Now if the other teams could learn that using your money wisely to put the best product on the field great. You have happy fans (eskimo fans) not so happy fans (Rider fans). Why are rider fans unhappy well they spent lots of money but did not get results that their fans deserve.

#8

How long will we have to put up with the whining from the hinterlands that those dastardly Eskimos only won because they broke all the rules. The facts is that the Eskimos success is a result of many reasons, the least being salaries. The Eskimos are what they are due to:
Great fan support
Responsible financial planning
The best scouting system in the CFL
Tradition

The crying by yourself and others is nothing more than petty jealousy. The fact that the Eskimos have done what they have and still remain a Community owned team should not be lost on Bombers fans.

There is a saying in my line of work, "Don't Cry, Apply"

Instead of crying about the Eskimos formula for success, try emulating them. Wally Buono has done exactly that.

I'm old enough to remember the early 60's when the Bombers were the flagship franchise in the West and the Eskimos were the perennial doormats. It is a shame that Bombers fans and management do not enjoy the great traditions of those great Bomber teams, hopefully you will regain them someday.

In the meantime, stop blaming all your woes on the successes of the Eskimos.

#9

...i have no qualms about the esks, success and am far from crying about the cash out-lay they made.... great......and i was also around to watch Jackie Parker , Johnny Bright and Normie Kwong in the early 60;s...hardly a weak franchise in those days...all i know is ...Edmonton has had a great resource to draw from....and fan support....The esks. don't exactly play in Clarke stadium anymore...and that would be a problem i could idenitify for the Bombers....hopefully that will change under Aspers ownership...BUT....we will ALL have to play under a salary management system ...unlike what transpired in the recent past....We'll see which team does best in this new era......All things being equal... :wink:

#10

Without engaging in another meaningless debate as to when one decade begin and another one ends, the glory days of Parker, Kwong, Bright, etc. were really the 50's. Although Edmonton played in the 1960 Grey Cup the following years and indeed the 60's were mediocre at best. The Eskimos went 23-8-1 in 62-63. They did not return to the Grey Cup til 1973 and didn't win til 1975(I was there for what I feel was the coldest Grey Cup in history, some may have had lower temps but the wind chill in Calgary that day was brutal). I need not remind you about the 70's, that would be bragging.

You correctly point out the advantage of Commonwealth but it should be pointed out that the Eskimos, even prior to the dynasty days, sold out Clarke Stadium with season tickets.

#11

...late fifties ....early sixties....not much difference to me....the eskimo teams i recall were hardly that weak....maybe in comparison to the Bud Grant teams of the day...i never really considered the esks. as a doormat club of that era....maybe the Lions....but not the Esks.....sorry there sport... :lol:

#12

you guys must be really bored to pick at these details...

if you had money to spend, would you not use it to improve your business and product? we keep our stadium in top condition so that fans don't complain (see Ivor Wynne/Taylor/CanadInns threads) - we have money so we use it productively. thats just good business. the SMS will level the field as far as players, but when Edmonton reduces salaries theyre gonna have more extra money to use on things like new seats for Commonwealth - will you complain when we do that? I guess new seats could make our players play better and then we can use the old seats to sabotage other teams? gimme a break...

#13

Small error in my previous post the Eskimos of 62-63 posted in fact a 8-23-1 record, hardly stellar. Trust me the Eskimos of the 60’s were mediocre at best. We put up with a series of forgettable Quarterbacks, the Esks were led by household names like, Randy Kerbow, James Earl Ray and who could forget Charlie (Chug Boat) Fulton. The “Nice” Niell Armstrong coached teams of the 60’s were at best average. It wasn’t until Ray Jauch took over coaching in 1970 that the Eskimos would make the return to respectability.

#14

Hey it’s good they make money I’m all for that, thing is why the really high expenses?

2M+ more spent then the bombers, If they could cut their expenses down by 500K-1M (Like training camp, player/coaches) They’d be running a much better profit.

How do they spend so much on training camp/recruiting? 350K should be enough for that but the esks spent like 750K(400K more then needed)

#15

as far as i, as a fan, am concerned, they can run that however they want! as long as the team plays well, and the management is stable, they can use the money to go paintballing for all i care. the stadium is comfortable, the on field porduct is good, and we still make a 6 figure profit. who can really complain about that?? (besides you)

#16

Some clubs (riders and Blue bombers)would only dream to have that model in place.

#17

This is what is called creative accounting.
The leagues richest team only reports a profit of six figures.
I have a hard time believing and would expect the real number is profit into the millions for the Esks.
This model franchise with average of 35,000+ tickets per year plus this corporate picture as well and ther is no way there is not more in their slush fund then the $15M they got when selling recently the Triple A baseball team.
I would not be surprised if the Esks are not more wealthy(profit wise) then the Oilers.
The costs to include the SMS is miles below the Cap in the NHL.

#18

Well let's see if their not spending money on long term improvements(Stadium improvements are fine) but are instead spending it on Training camp/Recruiting costs(750K when players(in camp) for 4 weeks is like 210K but more likely under 200K) It might get over 200K if your paying for all players to fly in but that's still under 300K, recruiting costing more then 100K in the seems like alot. but that is only 400K, where is the other 300K+ spent?

that 300K can be spent increasing that bottom line, Community donations(increasing the teams Rep even more), Stadium improvements.
Spending money needlessly on Travel and TC don't help the teams long term viability, They don't keep a large amount of first year players anyways it seems(so recruiting) as the team(edmonton) is getting fairly old in a few area's.

But if their spending money on keeping a State of the art Stadium, Community Events, Donations to Charities or Local Community Centers maybe Amature football all the power to them.
Or if they just want to earn a yearly profit of 1M+ without Taking anything away from the fans(like game-day experience, Stadium Confort)
so that 6.38M is: 4.65M on players it seems. so Coaches are getting 1.73M?
I don't know if their including training staff but they only have 8-9 coaches? so their getting an average of 173K.
That could be off with perhaps Developpement roster, Injured player costs. But the coaches seem to be earning very healthy six figure contracts, overpaid considering they don't have the top coaches in the league, not bottom of the barrel either but more middle on average.

I'd Rather have BC's Coaches or Calgary.
Higgins and Buono are much more established then Danny M.
If that 1.73M includes say 230K on injury moves + 300K on Training Staff then It's not so bad, but still looks like 1.2M average on their 9 coaches is alot.(8 coaches + their Director of Player personnel going by the Eskimos website)
Now they have a equipement & training staff of 7 people(2 are kids)
They get an average of 42K a year(the two equipement assistants who look around 19-20 getting closer to 30K while the head therapist gets 55-60K)

I'm thinking that's fairly healthy pay for guys who have a pretty easy 26 weeks outside the football season(if they are still working it's only with those eskimos who stay in edmonton during the off-season)

55K and I don't really need to do work in December, January, Febuary, March, April. sounds like a good deal to me.

I don't know edmonton fans, are these numbers wrong?
and I know their making money but with any business you don't want to be wasting money on needless expenses, it's not even like their over hiring with extra coaches or Training Staff that would be different, That's ensuring players are at their best.
if next year with the 400K from Bonuses they take 200K and hire an extra Trainer and Coach to improve their players fitness and Techniques good on em. But they could still be saving a good 1M+ of needless expenses and spend it on Building even stronger Community Support by Building some Community(more of them) programs, Eskimos School Breakfasts where the Eskimos help inner-city highschool and/or elementary kids by starting their day with a quality breakfast(doesn't need to be fancy just healthy)
Doesn't even need to be daily once a week at a school or two and their image goes up, it's good PR.
Eskimos winter Football league, an amature flag football league during the winter(kids 7-16).

Basicly anything that is benefitial to the City that also gets the eskimos name front and center especially during the winter to keep the eskimos in the mind of fans(not the hardcore ones, this is to keep it in borderline fans)
hey I know Edmonton averaged 36K fans last year that's great led the league I think, but 65K seat Stadium They should be happy but not stop there and say we're good.
you can stick to normal Advertising which is fine, but going out and being seen as the good guys helps, it's no garantee edmonton will greatly increase it's fan support but can't see it doing any harm at the least kids who went to programs supported by the eskimos should grow up loving the eskimos.

*I am not saying they do anything right now, they do have programs but the more they get their name out there the better.

I can complain more, about how they earn a 7 figure profit. I'm not saying their a bad team how could I say that. But it looks like they could do better.

#19

I think this article is contrary to the "myth" that money cannot be made in the CFL.
I believe most teams now in the healthier CFL do brake even or make a profit.

#20

truly I do agree they have some creative or questionable accouting/spending(mostly in the Away games, Training camp and extra 1.73M from coaches/players = around 3M total and something like 1-1.5M more then other teams in those area's)

But revenue wise not so much, Everyone must remeber the eskimos have some of the cheapest tickets in the league.
upper deck seats for 129$(+ GST and facility fee)
Seats along the 20 yard line front row for only 209(+ GST and facility)
that's over 100$ cheaper then both seats in the same Location at canad inns stadium(in winnipeg)(upper deck in winnipeg 308* for middle row middle section, 20 yard line lower deck 390$)
*numbers are season ticket costs from both team websites