Friday, November 4, 2011

Do all teams gain money in the NFL?

The Detroit Lions were the only team in the 2010 season that lost money. All of the other 31 teams (96.8%) in the league gained money during the season. Many people think that owning a NFL means you are guaranteed to have a profitable season. For being the only team in the NFL to lose money this season the overseer of the Lions has been handed the worst owner in the league. To be the only team in the league means that William Clay Ford Sr. has made some decisions that the trade-offs haven’t been big enough to gain him a profit. For example they built a new stadium but they haven’t been able to regain enough money in ticket revenue for the new stadium to outweigh the costs of the build. A typical team’s value in the NFL has grown 8% where as the Detroit Lions decreased 3% over the last 5 years. On the other hand there are teams that have been making the right economic decisions like the New York Giants who have increased the value in there team by 33% and the owners have rightfully so been named the beast owners in the league.

1 comment:

Aditya said...

Owners of professional sports teams need to know what the best decisions are for the franchise to grow. One needs to know what they are doing. There are many factors in this business, therefore many choices to make. Each choice in each factor requires a certain amount of importance. For each choice made, there is the opportunity cost, the next best choice that wasn't made. However, the person who made the decision may think that, but in actuality it may have been the best choice. Each choice made needs serious thought and consideration, so it can provide the most economic benefit. This is being done by the New York Giants, as they seem to be improving considerably.