Friday, September 6, 2013

NFL 2013 Season Kickoff: The State Of The League

From: http://www.forbes.com

The Kickoff
The NFL’s 2013 season kicks off tonight when the reigning Super Bowl champion, Baltimore Ravens, take on the Peyton Manning-led Denver Broncos. Customarily, the Super Bowl champ gets its first game at home, but this one is in Denver thanks to obstinate Baltimore Orioles owner, Peter Angelos, who refused to move one of his team’s regular season games to accommodate the Ravens. At least there is someone out there who stands up to the NFL.


It is fitting that the NFL’s first game is out west. The white heat of the game has moved that way, a sort of football Manifest Destiny fueled by stout defenses and read-option offenses. In the NFC, most folks have been talking about the Seattle Seahawks and last year’s Super Bowl runner-up, the San Francisco 49ers. The dynamic running quarterbacks for each team (Russell Wilson in Seattle and Colin Kaepernick in San Fran) get a lot of the headlines, but these two franchises are more grounded in the old-school fundamentals. The Seahawks have a fast-twitch defense and the high-motor running back, Marshawn Lynch. The 49ers’ defense is a sledgehammer and they, too, have a good old plowhorse at running back in Frank Gore.
In the AFC, the Broncos seem to be the popular pick. Their defense—despite the loss of Elvis Dumervil and Von Miller (six games for the latter), is stout and they have the elder Manning at the offensive controls.
Eight of the eleven writers asked for Super Bowl predictions on NFL.com chose one of these three teams to win it all.
The Dollars
The NFL is a behemoth that soaks up all noise not its own. League revenues are currently at $9.2 billion, up from $6.5 billion when commissioner, Roger Goodell, took over in 2006. Goodell’s stated plan: Get those revenues up to $25 billion by 2027. There is every reason to believe the NFL will get there.
Of course, the league will now be spending some cash that Goodell had probably initially not put in the budget. The NFL recently settled a class-action lawsuit filed by some 4,500 players for $765 million. The plan is to pay it as an annuity over the next 17 years, making it a pretty good deal for the league, all things considered. This settlement won’t make the problem totally go away, though. The NCAA will have to deal with something similar soon, and retired NFL players who are suffering the effects of head trauma won’t be disappearing from view overnight.
Corporations don’t seem to pay much mind to the issue though, which will keep the NFL coffers brimful for years to come (see this article). Some 40% of all corporate sponsorship money spent on the four major sports leagues in the U.S. goes to the NFL. That’s helped team values rise to an average of $1.2 billion this year, up 5% from last year and 30% from seven years ago. Owning an NFL team remains a great investment. Which brings us to:
The Owners
–Dallas Cowboys owner, Jerry Jones, signed an estimated $500 million, 25-year naming rights deal with AT&T for the Dallas Cowboys’ stadium in late July. Rumor had it that AT&T’s CEO, Randall L. Stephenson, was bent out of shape for not getting the chance to bid on the NFL’s mobile app, which Verizon Wireless won with a four-year, $1 billion deal. But Stephenson, through the Cowboys, still got a piece of the NFL and paid a handsome sum for it. The deal was a great example of the way the NFL garners big revenues from slicing and dicing up its rights, and getting competitors in any given field to pony up big money to get in the game.
–New England Patriots owner, Robert Kraft, told Charlie Rose that he “very much” wanted quarterback, Tim Tebow, to make his team after coach Bill Belichick couldn’t find a place for quarterback. One wonders if Kraft wanted to keep Tebow as much for his locker room karmic presence as his football skill, especially after the Aaron Hernandez murder charge. As polarizing as Tebow is, he seems to be universally thought of as a good person.
–Owner Woody Johnson is at the helm of the nut house known as the New York Jets. Coach Rex Ryan seems to be hanging on by a thread. The team has a no-name defense. It will start rookie Geno Smith on week one, even after he had a terrible preseason, because the presumed starter, Mark Sanchez, was injured late in a meaningless preseason game. Johnson summed up the Sanchez injury thusly: “I wished he hadn’t gotten hurt, but you’ve got to protect yourself too.” Words to live by.
–Washington Redskins owner, Dan Snyder, was suspiciously quiet during the off-season.
–Pittsburgh Steelers owner, Dan Rooney, is back from a three-year sojournas ambassador to Ireland. His Steelers—my team—are not predicted to fare well this year. In recent years, whenever the team was predicted to do poorly, they’ve done the opposite. Here’s hoping the trend continues.
–Stephen Ross, owner of the Miami Dolphins, announced a donation of $200 million to the University of Michigan’s business school and athletic programs, following in the footsteps of fellow billionaire, T. Boone Pickens, who pledged $165 million to Oklahoma State University’s athletic program.
–New Cleveland Browns owner, Jimmy Haslam, remains in hot water, with more than two dozen suits filed against his Pilot Flying J company for fraud. The FBI and IRS raided his company’s offices on tax day this year. This seems like it will someday soon come to a head. Goodell and Haslam’s fellow owners may end up having some tough decisions to make.
–Arthur Blank, owner of the Atlanta Falcons, got the go-ahead for a retractable roof stadium that will be ready for the 2017 season. He can thank Matt Ryan, Julio Jones and Roddy White for that.
–And finally, Ravens owner, Stephen Bisciotti, remains the most reclusive NFL owner around, even after winning a Super Bowl. Once a year for the past five years, I’ve asked for an interview with him. And every time, I’ve “gotten the Heisman,” as we used to say in college. I will try again next year.

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