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<blockquote data-quote="HardRightEdge" data-source="post: 461182"><p>The answer to your first question is bad math on my part. The figure is $2.25 mil as you said. That would not materially change my point using the incorrect $1.6 mil figure.</p><p> </p><p>As to the second point ($5.45 mil cash money savings), as surprising as it seems, cash money payouts, taken in isolation, are a lot less important to teams than cap layouts, and it does make some sense.</p><p> </p><p>This will be even more to the point going forward...while everybody is aware of the cap maximum, there is also a cap minimum which creates a narrow band within which the cap is managed under the new CBA. It's not like you can run well under the cap one year to store up cash money in order to unload it in a future year on a bunch of signing bonuses.</p><p> </p><p>Further, when you consider that all actualized cap $'s represent current or past cash payments, over time the discipline of the cap by itself imposes player cash payroll discipline.</p><p> </p><p>Cap affects aside, I believe the Pack's unique ownership structure makes cash issues a matter of less concern than with many private owners. For several private owners, the team is their primary business and an important source of personal income. Cash money is extracted to pay themselves (owners and employed family) salaries and dividends. The Packers have no such cash extractions.</p><p> </p><p>Or another way to look at is that the "dividend" paid to Packer shareholders (of which I am one) is "winning".</p><p> </p><p>Or let's look at the recent stock issuance. What did it generate in free cash? $70 mil was it? When you think about that a bit it amounts to issuing a perpetual bond with a 0% coupon. What private owner could do that? Or consider what it actually is...equity dilution that none of the preexisting owners could care less about. What other ownership group would look at it that way?</p><p> </p><p>In the 2010 uncapped year, the Pack carried the one of the highest player cash outlays in the league...I believe it was something on the order of $160 mil including benefits...top 3 in the league if I recall correctly. That followed on the previous year when the team generated an operating profit of something like $10 mil minus $5 mil in write downs on land for net $5 mil. I'm working from memory on these numbers, but I believe they are pretty close.</p><p> </p><p>I don't think many owners who make their living at this, or who at least expect the team to be a reasonably well performing profit generator, would make the kind of payroll commitment the Pack made in 2010 coming off that poor of a profit year. This past year, under the cap and with the post-SB windfalls, the Pack's operating profit was quite healthy...I believe $43 mil was the recently reported figure. With the new seats and the new TV contracts, cash should not be an issue for the foreseeable future given the cash spending constraints over time that are a byproduct of the cap.</p><p> </p><p>It is also worth noting that because Green Bay is a small market franchise, many think it must be in the lower ranks in the league in terms of financial performance. That would be a misconception. As of 2010, the Pack was in the middle of the league in revenue and ticket prices. With the new seats, and to the extent the SB/contender windfalls persist, the Pack should be moving into the upper 1/3 in revenues and profits if not already there.</p><p> </p><p>In short, if you can fit Rodgers under the cap, or anybody else for that matter, the cash won't be an issue.</p></blockquote><p></p>
[QUOTE="HardRightEdge, post: 461182"] The answer to your first question is bad math on my part. The figure is $2.25 mil as you said. That would not materially change my point using the incorrect $1.6 mil figure. As to the second point ($5.45 mil cash money savings), as surprising as it seems, cash money payouts, taken in isolation, are a lot less important to teams than cap layouts, and it does make some sense. This will be even more to the point going forward...while everybody is aware of the cap maximum, there is also a cap minimum which creates a narrow band within which the cap is managed under the new CBA. It's not like you can run well under the cap one year to store up cash money in order to unload it in a future year on a bunch of signing bonuses. Further, when you consider that all actualized cap $'s represent current or past cash payments, over time the discipline of the cap by itself imposes player cash payroll discipline. Cap affects aside, I believe the Pack's unique ownership structure makes cash issues a matter of less concern than with many private owners. For several private owners, the team is their primary business and an important source of personal income. Cash money is extracted to pay themselves (owners and employed family) salaries and dividends. The Packers have no such cash extractions. Or another way to look at is that the "dividend" paid to Packer shareholders (of which I am one) is "winning". Or let's look at the recent stock issuance. What did it generate in free cash? $70 mil was it? When you think about that a bit it amounts to issuing a perpetual bond with a 0% coupon. What private owner could do that? Or consider what it actually is...equity dilution that none of the preexisting owners could care less about. What other ownership group would look at it that way? In the 2010 uncapped year, the Pack carried the one of the highest player cash outlays in the league...I believe it was something on the order of $160 mil including benefits...top 3 in the league if I recall correctly. That followed on the previous year when the team generated an operating profit of something like $10 mil minus $5 mil in write downs on land for net $5 mil. I'm working from memory on these numbers, but I believe they are pretty close. I don't think many owners who make their living at this, or who at least expect the team to be a reasonably well performing profit generator, would make the kind of payroll commitment the Pack made in 2010 coming off that poor of a profit year. This past year, under the cap and with the post-SB windfalls, the Pack's operating profit was quite healthy...I believe $43 mil was the recently reported figure. With the new seats and the new TV contracts, cash should not be an issue for the foreseeable future given the cash spending constraints over time that are a byproduct of the cap. It is also worth noting that because Green Bay is a small market franchise, many think it must be in the lower ranks in the league in terms of financial performance. That would be a misconception. As of 2010, the Pack was in the middle of the league in revenue and ticket prices. With the new seats, and to the extent the SB/contender windfalls persist, the Pack should be moving into the upper 1/3 in revenues and profits if not already there. In short, if you can fit Rodgers under the cap, or anybody else for that matter, the cash won't be an issue. [/QUOTE]
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