Saturday, July 24, 2010

While the Bills increase in value, it may decrease the team's chances of staying


















I'm sure you have all read that Forbes magazine ranked the Bills #33 on its list of most valuable franchises in the world at $909 million. Talk about a stock option going up, as it was only three years ago that the team was worth $885 million dollars. Of course, this sort of news has to bring out media members speculating about the state of the franchise. Some will say that the value of the team proves that we shouldn't consider them small time when their franchise is worth that much. Others will say that it's because of the fan base that the Bills are worth this much.

I'll tell you what I get from the value of the Bills increasing... an added increase in being more scared. Look, for the longest time I've been saying that in order for the Bills to stay in Buffalo, Ralph Wilson has to live for another 10 years. Then maybe, just maybe, the region will turn its economic woes around and be able to bring in corporations to buy luxury boxes at the stadium.

I know most fans don't understand that luxury boxes are the one source of revenue that the Bills are lacking in comparison to other NFL markets. It's the once source of income that isn't involved in revenue sharing. It's also a price tag that corporations in Buffalo can't afford. A luxury box can cost anywhere between $250-500 thousand in cities like Dallas and New York. That's the main reason why the Bills have decided to venture to Toronto for one regular season game a year. They are trying to gain that corporate dollar to compete with the likes of Dallas and New York.

Anyways, my original point is that while the value of the team increases, it decreases the chances for the Bills to find a buyer for the team to stay in Buffalo. Excuse me for sounding morbid, but if Wilson lives for another 5-10 years, the price tag of the Bills may go up to a cool billion dollars. Sorry, but how many companies or people in Buffalo can afford that? Not many and don't give me Jim Kelly's name. You also have to put into account that the new owner of the team is going to acquire a bit of debt right away and has to find a way to recoup it. Sorry, but 50 bucks for a ticket is just a water drop in a aquarium for a new owner.

However, I can tell you that there are probably a number of people in LA and Toronto that can afford the price. You see, that's the problem. The assumption of those close to covering the Bills say that the team will go up for public auction after Mr. Wilson's death. That means open season for any big shot executive with deep pockets that can buy the team and move it. And of course, if the team moves to LA or Toronto, you can sell all those luxury boxes for the going rate. Suddenly, the aquarium has an Indian dancer that can conduct a seance to make it rain.

I don't know about you, but every time I hear that some idiot in LA is lining up funds to build a football stadium with a retractable roof and a movie theater, I start getting queasy. That's why I haven't been one to throw stones at Mr. Wilson for trying to make the Toronto experiment work. The Bills need all the extra income they can get to make the team more economically viable in the NFL. If the Bills in Toronto works, it will only increase the chances of someone actually believing that they can make money off this team upon purchase. I still believe that the Toronto experiment can work, but the majority of that burden falls on the Bills to actually deliver a winning product on the field. No one wants to support a loser from another town.

The other thing that I want to make clear, and I know I'll get sh#$ for it, is the whole "It's the fans that have made the Bills this valuable." Sorry, but that logic is a little bit flawed. Yes, they have something to do with it, but the biggest reason the Bills are worth near a billion dollars is because they are a part of the biggest brand in professional sports, and that's the NFL. I don't care where a NFL team is located (It can be in Alaska for god sakes), the team is going to be worth a ton of money.

Everything that the NFL touches, always turns to gold. You have a billion dollar TV deal, merchandising and corporate sponsors who are begging for a piece of the league. All those side deals make it efficient for the Bills to be able to make a profit before they even sell a ticket. Hell, the TV deal itself pays for the players' salaries. Why do you think the Bills are worth more than the Boston Red Sox? Sorry, but their fans are great too (albeit annoying) and they get way more attention than the Bills will ever get. The simple answer has to do with the Bills being a part of a bigger brand/sport.

Bottom line is this: Since the whole discussion on what will happen to the Bills when Mr. Wilson dies have surfaced (around 2005), it seems that the breaks have been beating the boys. From new stadiums popping up to the NYS economy sucking, it's very hard to be optimistic that this team is going to stay in Buffalo forever. I assure you, this added caveat of the Bills value increasing, doesn't equate to wine getting better with age. Especially, when the city can't even afford the drink.

3 comments:

  1. Sorry dude, but those are the facts. Enjoy it while you can.

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  2. That is the problem, there is nothing to enjoy. I see how some people get to the conclusion as if the Bills are almost being bad on purpose.

    On the bright side, the Jaguars are more likely than the Bills to move to LA. As for toronto, the experiment has been a miserable failure so far and some inventor taking the team there is unlikely if this keeps up. But that is a double-edged sword. If Toronto fails, then any investor will think Buffalo is an unprofitable market along with Toronto.

    In my mind, there would be some other city that would need to be ready for a franchise if the next owner wanted to realistically move the Bills.

    And if that eventually happened...well...Cleveland, Houston, and Baltimore got teams back again right...? (trying to stay positive)

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