Something I always find puzzling, is how the finances of a sports franchise really works. Every once in a while you will see a part of an expense but never enough information to piece it all together.
Kind of like what the government does when they pretend to explain the finances of the Country to us.
Except of course, Iâ€™m not sure how much of it is really our business when it comes to the expense details of running a sports franchise.
One thing seems certain though, there are teams that lose money.
Brad Waters â€“ says he lost $2 million in 2004. His last year of owing the Renegades.
He broke the finances down thusly,
Expenditures in football $6.3 million
Stadium Expense .8 million
Marketing and Administration 3.4 million
This would indicate that he brought in $8.5 million in revenue.
The first question that rises is why so much in Football expenditures? The salary cap was $2.6 Million (and I doubt very much he went over it). Is it really that much for GMs, coaches, travel etcâ€¦ or did someone in head office get a big cheque?
Second question, same question as the first except in Marketing and Administration?
Now, I know the team received some money for hosting the 2004 Grey Cup and I would think they would also receive some kind of cheque for TV revenue. For arguments sake lets say they received 1 million for the Grey Cup and 1 million for TV revenue.
This would leave 6.5 million to raised through attendance.
They had 146,700 paying customers in 2004 which would indicate that the Renegades earned $44.31 a seat. To me this seems reasonable. There are a lot of cheap seats, but then there are box seats and expensive centre row seats as well.
The problem here is if you raise the salary cap instead of taking a hard line on the existing $2.6 million. How do the Renegades stay in business? Unless, the CFL is going to divvy out a million more in TV revenue to each team. There isnâ€™t anywhere else for the owners to increase their revenue. Based on their last ticket sale. The fans sure donâ€™t seem in the mood to dig any deeper.