thats not revenue sharing.
if noones over the cap, then theres no tax, so the bombers dont benifit financially as u said.
dont forget, most teams gave out signing bonuses and frontloaded contracts to avoid going over the cap this year…dont be surprised if no team is over.
your whole argument for why the bombers are worth $19M is all based on wishful thinking and falsities.
**ALSO** REVENUE SHARING!! Pretty much every CFL team will be funding the bombers so that their yearly expenses get pretty close to 12.5M[b](by the 2008 season[/b])Notice how I'm saying 2008, when certain players like Dave Dickenson and other(Clermont) 2008 FA's will be getting new contracts, I'm sure more teams then BC have players who will become FA's in 2008.
yes alot of teams did give out bonuses, even the Bombers according to the free press(today) gave out 600K in bonuses. most teams gave 500K or so, but that is going to prevent them from having a team salary of over 4.05M? some teams had 2006(specificly 2006) team salaries of up to 4.5M(riders) How many players signed 1 year deals? CFL min is a 1 year + option so a 50K$ bonus would likely only be 1/3 of total contract salary of 150K over 2 years.
Or the bonus is only in effect for the 2007 season and all teams are then even for 2008, unless they have a load of cap room to sign players to deals similar to what teams did at the end of the 2006 season.
The fact every team gave out all those bonuses shows how much money teams are making.
Edmonton and Sask gave out 500K in bonuses, so would they not have earned 500K+ more in profit without giving those bonuses?
if the blue didn’t give out their 600K they would have ended up with a modest profit from football operations,(yes they got 700K from the league in 2006 and yes the riders had the rolling stones concerts)
Both teams will be fine come the 2008 season providing those two follow the 4.05 Cap and no team goes past say 4.3M in player salaries in 2008.(2009 also preferably, let the cap stay at 4.05 for 3 season then change it)
umm how is the fact the Bombers have 4M in the bank a falsities?
go to the Bomber website and look at their report.
Without that the blue are worth say 15M. Based on 2008 Revenues which should be 12M+(before CFL tax money)
Providing expenses don’t sky rocket and the blue don’t give out 600K in bonuses again, 12M in revenues is 500-600K a year profit? add playoffs that’s 1M, add a new stadium or atleast upgrades to canad Inns that’s 500K more.
Although the Bombers did just sign a new deal with their biggest sponsor, so if that has a good increase on it’s yearly $$$ amount could be the bombers could make more then 1M a year.
this is providing the blue stay under the 4.05M cap, preferably at 3.9M(add an extra 100K)
The League revenues, to a certain extent are shared amongst the teams, not the revenue from franchise to franchise, even SMS penalties are considered league revenue and dispersed via the commishs office.
The value of any franchise is whatever the buyer is willing to pay. Are the Nashville Preds really worth $200 M US ? They have lost $70M over the last 10 years, explain that one ?
until someone says they are willing to pay $19M for the bombers, they are not worth $19M....barnes7 just pulled that number out of the air.
there has been no suggestion anywhere that someone is interestesd in paying $19M for any CFL team.
Everyone knowlegeable has said how the Nashville Preds are only really worth a third of what is reported as the "selling" price.
The $220M which everyone is saying includes indemnification to the city for the lease that Balsille will break to get out. This is a bogus number and in no way reflects the value of the franchise.
Just like when the Argos and Ticats were "sold" for basically next to nothing and were to assume existing debt.
You will also remember how the Ottawa Seanators and Buffalo Sabres were in bankruptcy and the new owner got the team for free when he purchased each arena.
So its not only the CFL which has had problems of teams folding, going into bankruptcy etc.
Actually, Barnes probably isn’t too far off on that $19M figure if one factored in all the assest’s including the stadium and prime commercial land. But of course to a hardcore Bomber fan like Asper, the cost of owning the team…priceless.
what assets?
-the bombers dont OWN the stadium...buying the bombers doesnt mean u now own the stadium.
this just shows, any fool willing to purchase the bombers at thier current state for a ludacris $19M would NEVER even get a sniff of seeing that money return, even if they lived forever...if anything, they'd never see that $19M again, PLUS have to pay loss after loss season after season.
the only plan that could EVER make the bombers money is if they get a new stadium, and an extra source of revenues ( the retail development )...isnt this aspers plan?...hmmmm
I do recall how the BB have exclusive use and now operate their stadium.
Look at it this way, if you wanted to start up a new team in QC, the franchise fee is $6M, the bond or whatever they call it is $3M and expected operating costs are $12M, that is $21M right there, and you don't have a stadium yet ?
obviously, without a stadium NOONE is going to pony up money to run a team…
and the numbers u mention are the EXACT reason ottawa doesnt have a team…cuz the price is higher than the team is worth…just like $19M is way more than the bombers are currently worth.
Hold on a second, it’s no different then in any other sport.
In fact, that’s life in general.
Like starting a new business, it is the cost of doing business.
The start up costs becomes part of the overall budgett.