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Recession Woes Penalize NFL Franchises

Overall revenues up, but some franchises lose value for the first time in a decade

By Harry Kimball,  Newser Staff

Posted Sep 3, 2009 1:55 PM CDT
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(Newser) – Tight credit and the recession-driven scarcity of buyers and investors slashed the value of eight NFL teams this year, Forbes reports. It’s the first time in a decade that even one team has seen a decline. Though the average team value held steady at $1 billion, Oakland led the losers, shedding 7% of its value. The recession has been kinder to some—the top-valued Cowboys tacked on 2%—but things are likely to get worse.

The NFL recently extended many lucrative television contracts through 2013, but the tough economic situation has eroded the league’s bargaining position, and the deals allow for annual fee increases of just 2%, the slimmest ever. Add to that an expected contract dispute in 2010 that could see a lockout, and the plight of some teams could worsen. Still, owners can revel in the now: the third-best year in NFL history saw revenue increase 7% while player costs went up only 4%.

Super Bowl tickets, like these on display at a news conference Jan. 29, 2009, are still hard to come by, but many NFL teams are having trouble filling seats.
Super Bowl tickets, like these on display at a news conference Jan. 29, 2009, are still hard to come by, but many NFL teams are having trouble filling seats.   (AP Photo/Morry Gash)
The new Dallas Cowboys stadium is keeping the league's most valuable franchise above the fray, for now.
The new Dallas Cowboys stadium is keeping the league's most valuable franchise above the fray, for now.   (AP Photo)
The new Dallas Cowboys stadium is keeping the league's most valuable franchise above the fray, for now.
The new Dallas Cowboys stadium is keeping the league's most valuable franchise above the fray, for now.   (AP Photo)
Jets linebacker Calvin Pace tackles running back Patrick Cobbs (38) of the Miami Dolphins, who have resorted to soliciting celebrity investors as a result of the brutal economic climate.
Jets linebacker Calvin Pace tackles running back Patrick Cobbs (38) of the Miami Dolphins, who have resorted to soliciting celebrity investors as a result of the brutal economic climate.   (AP Photo/Bill Kostroun)
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COMMENTS
Showing 3 of 4 comments
Robert_Dada
Sep 3, 2009 8:04 AM CDT
If they are such an economic force, why do they always fail to self fund their real estate capital investments? It's easy to be an economic powerhouse when some of your biggest expenses are heavily, if not totally, subsidized by the taxpayers.
Pragmaticrealism
Sep 3, 2009 7:58 AM CDT
why so damn bitter? these professionals are a huge economic force for many cities across the country.
Robert_Dada
Sep 3, 2009 7:57 AM CDT
Can't wait for the league to ask for a bailout. They're already expert whiners for public assistance every time they want a new facility to play their children's games in.

 
NFL • Dallas Cowboys • investors • Oakland Raiders • football • franchise • recession • credit market • team • value

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