Considering the idea of revenue sharing and the recent comments by one Jerimiah Jones.

Mr. Jones is missing one very distinct fact, that the league itself is what is generating the revenue and not one team. The NFL seems to think that the Cowboys would exist as a franchise itself if it not were for the other 31 teams engaged in the activity. Unfortunately for Mr. Jones, the rest of the team has to exist for his pathetic franchise to exist. You need not go further to understand the future falting of the NFL than to visit Jacksonville. Right now because of the player oriented bargaining agreement, the owners seem to be having increasingly amounts of trouble generating sufficiently seductive revenue to keep operating and be happy. Jacksonville bought a stadium that seated somewhere around 65,0000. Right now with a team that should be a good one, or at least relatively speaking, is not going to be one of the lower teams in the league, however they are not going to sell out a single game this season leading to blackouts to the local market. (this idea may be visited later as an astounding piece of stupidity).

The essential problem is that ticket prices are so high the majority of the fan public is not able to afford the games and grow increasingly disenfrachised to the sport itself as a result of the poor actions by owners. Right now the NFL is operating somewhat like a ponzi scheme. In order for the revenue generated to be high enough to support the escalating costs, the league must find increasingly new ways to generate cash as the main aspect of the business, the teams playing on the field is a lost leader. They no longer generate suffienct revenue from the main attraction and therefore, under a normal business scenario, this aspect would be solf off for the higher generating aspects but there are no other aspects that generate sufficient cash to suppor the loss leader.

Why this is like a ponzi scheme is simple. The ordinary aspects of the business itself are failing to generate enough of a cash flow to support the other aspects of the franchise. There exists no other portion of the franchise large enough or revenue generating enough to support the loss leader of the investment aspect therefore the owner must resort to illegal means to suppor the image itself. The underlying business plan is failing and no one wants to admit it!

Considering the size of the stadium. Bigger is not always better specifically when you are talking about maximum capacity during the fat years (the winning years) versus the slower years (the losing years) as no one should stay on top forever. The stadium in Jacksonville is far too large for the market presented and this is not a lost fact. They cannot generate enough fan loyalty to sell out the tickets anymore. The size of the stadium should be built not only to the size of the market but needs to be built smaller than the lower, or at least a little bigger in order to support the escalating ticket price scenario but in this case that is not the fact. Consider the long run average fan base of a market in a juvenile market as in the NFL is not estabilshed there yet. Most of the fan base is derived from long term fans and that is not involved in a new or newer market. In a new market, in order to support the escalating ticket price, skyrocketing maybe, the size of the stadium should not be set to the maximum revenue that the franchise can possibly generate but rather two standard deviations lower than that to build some kind of exclusivity, however this is not what the moron owners are trying to accomplish. They are building stadiums to fit the maximum revenue generating period and ignoring the plain and simple fact that this is not going to last.

The NFL has reached its peak in that most of the interest generated is not from the going to the game itself rather the ancillary parts of it that it brings...ie fantasy football and haging out with friends at home and wathcing games rather than going to them.

The mere fact of the new stadium generates increased revenue as long as the novelty of it lasts and then it is back on the team to generate sufficient revenue to support itself. However right now, many teams are not doing that and thus the NFL is beginning its failing process.

In order to correct this, the NFL and all pro sporting teams must correct this and they are neither showing the intelligence to nor the ability to care enough to correct this. They think nearly short term about how they can pad their own pockets and not about the long term prospects of the team itself. I would bring this point to light to them. What they are doing is rotting the fan base and they do not have the intelligence to figure that out. It is not longer feasible for the average fan to go to a game. Their stadiums and the like are increasingly being supported by a smaller and smaller group of people that can afford easily to go to games and this segment of the fan base is highly fleating in that if the team is not winnning, they have no interest in going to games or if there is not a strong prospect of the team winning, people will not go.

The NFL was built off of families going to games and making wonderful memories for their children for the future. This is no longer the case with the NFL. When you go to a game you no longer see families as you do see couples and therefore the next generation that is going to support the team is no longer getting those fond memories made and thus building the future interest in the sport itself. The interest in the NFL is no longering going to games but rather watching on TV and if the main revenue stream is going to games, it is failing and even if that is not and the main revenue is wathing on TV and the games are blacked out in the market if not sold out then you are alienating the entire fan base.

Unfortunately, the NFL does not see things this way and are missing a vital fact about what their product should be. Maybe this is just idealistic rhetoric and maybe the NFL should take heed of the fact. And at any rate, the NFL should share revenue because with out the other teams...I should say that one team does not make a league MLB.

 

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