- Jul 23, 2012
- Reaction score
You're saying the owners add their own money into the business to give it more profits?
I was thinking perhaps it had something to do with the larger cities being able to pay more for luxury boxes, since those are homes to bigger corporations.
My point was that a wealthy owner could easily bail out a team making an operational loss while the Packers would run into trouble covering up for it over an extended period.
In addition those teams could pay significantly more money for coaches and executives, therefore you definitely don't want the Packers to be the team running up those salaries.
Technically the Packers have 500,000 owners. They had a simple stock sale that garnered $64M, so that’s a chunk
Don't get me wrong, but $64M is peanuts for most NFL owners. For example, the Broncos were just bought for $4.65B!!!
In addition the Packers can only use the money made in a stock sale on stadium improvements.
But it really doesn't matter how profitable a firm is. Each team can only spend the cap on salaries. There is no luxury tax. IMO it's what makes football so great.
While teams can only spend up to the cap on players teams with a wealthy owner are able to afford paying coaches and executives significantly more money.
They can also spend huge bucks on the team's infrastructure as well.