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What infuriates people is these deals are always sold to the public as some sort of net-positive redevelopment, instead of what's really happening, which is a t

by gozur88 11y ago

What infuriates people is these deals are always sold to the public as some sort of net-positive redevelopment, instead of what's really happening, which is a transfer of tax money to team owners. With orchestras and ballets and performing arts centers everybody knows up front you have an ongoing financial liability. And the numbers are smaller.

adventured 11y ago
> which is a transfer of tax money to team owners It's primarily a transfer of money to players. In the next ten years players will earn around $50 to $55 billion in income. That's drastically beyond anything owners will either earn via operations or extract through capital gains via a sale. Take the Houston Texans for example. They're stated as the 7th most valuable NFL franchise per Forbes, generating $114m in operating income (not net income) annually - the salary cap is $143m. Green Bay? Tenth most valuable, they only generate $63m in profit - every 10 to 12 years, the Green Bay players earn more total than the entire franchise is worth. The bottom 20 teams? Forget about it. Most leagues are the same, the players overwhelmingly extract the value. The top 450 NBA players are set (with the new TV rights money) to earn more than all of the Fortune 500 CEOs combined in terms of salary (~$17 trillion in market cap of the companies those CEOs operate).
- cmurf 11y ago
  That makes me feel better, actually. It's obscene money, and I don't agree with the subsidy. But, the players get beat up, and CET. Some commit suicide. Fans paying high ticket prices, parking, meh whatever, make them pay more instead of begging from taxpayers though.
  - douche 11y ago
    The rank-and-file football player, arguably, is underpaid, particularly in comparison to their colleagues in MLB or the NBA. I think the median salary for non-rookie deal NBA players is north of $5 million/year now. Baseball is similarly outrageous for veterans that reach free agency (the Red Flops were handing out $10 million deals like candy the last couple of years). Not to mention that those deals are guaranteed, unlike the NFL, where players are routinely cut when injured or just before they reach thresholds where bonuses kick in. s
- jacalata 11y ago
  Somehow, the valuation of the team increased by $600 million in that year. The teams are capturing plenty of the money going around. I'd be willing to bet that the players pay more tax than the owners per dollar extracted, too.
munchbunny 11y ago
I think it's mostly the money. Non-profits, small amounts of money, and the programs are always running. If they're not putting on shows, they're often running programs all day, all week for kids and teenagers. The big stadiums and sports teams don't come even close to such an intimate level of involvement with the community.

by gozur88 11y ago

adventured 11y ago

> which is a transfer of tax money to team owners It's primarily a transfer of money to players. In the next ten years players will earn around $50 to $55 billion in income. That's drastically beyond anything owners will either earn via operations or extract through capital gains via a sale. Take the Houston Texans for example. They're stated as the 7th most valuable NFL franchise per Forbes, generating $114m in operating income (not net income) annually - the salary cap is $143m. Green Bay? Tenth most valuable, they only generate $63m in profit - every 10 to 12 years, the Green Bay players earn more total than the entire franchise is worth. The bottom 20 teams? Forget about it. Most leagues are the same, the players overwhelmingly extract the value. The top 450 NBA players are set (with the new TV rights money) to earn more than all of the Fortune 500 CEOs combined in terms of salary (~$17 trillion in market cap of the companies those CEOs operate).

cmurf 11y ago
That makes me feel better, actually. It's obscene money, and I don't agree with the subsidy. But, the players get beat up, and CET. Some commit suicide. Fans paying high ticket prices, parking, meh whatever, make them pay more instead of begging from taxpayers though.
- douche 11y ago
  The rank-and-file football player, arguably, is underpaid, particularly in comparison to their colleagues in MLB or the NBA. I think the median salary for non-rookie deal NBA players is north of $5 million/year now. Baseball is similarly outrageous for veterans that reach free agency (the Red Flops were handing out $10 million deals like candy the last couple of years). Not to mention that those deals are guaranteed, unlike the NFL, where players are routinely cut when injured or just before they reach thresholds where bonuses kick in. s
jacalata 11y ago
Somehow, the valuation of the team increased by $600 million in that year. The teams are capturing plenty of the money going around. I'd be willing to bet that the players pay more tax than the owners per dollar extracted, too.

munchbunny 11y ago

I think it's mostly the money. Non-profits, small amounts of money, and the programs are always running. If they're not putting on shows, they're often running programs all day, all week for kids and teenagers. The big stadiums and sports teams don't come even close to such an intimate level of involvement with the community.