[HineyBuck]

Interesting report just out in January. Since the NFL owners won't release financial data, but continue to cry poverty, the NFLPA commissioned two University of Chicago economists to make an assessment. Here is an excerpt of their report, with their main conclusions:


"Our firm has been asked by the NFL Players Association (NFLPA) to examine the NFL owners? claim that they cannot continue to operate economically under the current salary cap/free agency system. The best source of information for this analysis would have been the audited financial statements of the NFL and each of its 32 teams and affiliated enterprises. However, we understand that the NFL owners are unwilling to provide that information to either the NFLPA or the public. The best available alternative information is
contained in the financial statements of the Green Bay Packers (the one publicly owned franchise in the NFL) and in data collected by reputable third parties and by the NFLPA.

"The data from these various sources are broadly consistent with one another. Thus we conclude that together they paint a reliable picture of the financial performance of NFL teams. Based on our analysis of the economic and financial data, we have reached the following conclusions:

? Over the past decade, NFL owners have, on average, done very well financially, and they have continued to do well since the 2006 extension of the current Collective Bargaining Agreement (CBA).

? Team values have nearly quadrupled since 1998: the average NFL team is now worth more than $1 billion.

? Over the past five years, average operating income per team has been $26.4 million. Last year, the average team earned approximately $25 million.

? When one takes into account both capital appreciation and operating income, NFL owners have realized average total returns of nearly $100 million per year per team, or an average annual return of 17.6 percent over the past decade.

? The financial returns to NFL owners have been substantially greater than the returns to investments in the overall U.S. economy as reflected in broadbased stock market indices.

? The percentage of total revenues paid to players in the years following the 2006 CBA extension is lower than the average percentage paid to players since the NFL and the players entered into the current salary cap/free agency system in 1993. Recent increases merely reverse a downward trend that began in 1999.

? The proportion of rookie player salaries in the NFL has declined over the past decade.

? NFL owners have enjoyed substantial increases in their wealth under the salary cap/free agency system. To the extent that the recent turmoil in the financial markets may have an impact on future economic performance, the current system contains an adjustment mechanism that will restrain the salary cap and put a ceiling on the player compensation as a percentage of overall revenues."


I've got the full report in a .pdf file. I'd be happy to post it if someone can tell me how. Or, send me a pm and I'll send you a copy.