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Old 11-24-2013   #120
Dan B.
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Default Re: Kraft: "London ready for own NFL team"

Quote:
Originally Posted by infantrycak View Post
I don't think this involves player or owner money in a significant fashion. Contracts would be done in dollars because of cap requirements. The NFL is going to hold and distribute in dollars. Anything subject to revenue splitting will have to be converted to dollars. So really what we are talking about is handling of money from tickets, merchandise sales, concessions and operating expenses. Those are all transitory and readily converted. Heck if the owner in Mexico wanted he could take all his pesos ticket sales money and convert it to pounds. You aren't stuck with what you started with.

I understand arguments like crime, better sales for suites, where more TV revenue would result, etc. but I don't see currency as a stumbling block for either.
I agree that it's not just players and owners. It's the citizens of the city/country the franchise is located in. You want a team that is on firm financial footing and whose fans will have the constant income to support their team. What is the owner of Mexico's team going to do though when he tries to convert his pesos ticket sales money and only gets half the revenue he would have the year before? Or when their economy craters and no one can afford to buy t-shirts or tickets anymore? A stable economy helps pro teams immensely. That's why teams struggled in Detroit for so long and why the Bills are threatening to leave. There's a reason that American owners from the Glazers to Khan to the Red Sox also own EPL teams rather than teams in Mexico's top league. We don't see many owners that own pro teams in Mexico and America (I can only think of Chivas and Chivas USA in the MLS). And the Mexican teams don't have nearly as solid of a financial footing as teams in England.

I also think that the main factor is going to be TV revenue. The NFL has much smaller potential growth in tv revenue in the states. The opportunity for growth is all overseas -- and Europe has far more disposable income than Latin America.
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