The NFL's Second Season: The Playoffs
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Should the NFL owners and the NFLPA fail to reach a labor consensus in the upcoming months, and with the current labor agreement due to expire after 2007, the salary cap NFL teams are required to operate within will disappear after 2006. The cap has been kind of an “equalizer” for those teams not fortunate enough to produce significant “local” revenues, which do not have to be shared with the rest of the league. Generally, teams with new stadiums and their ability to produce revenue from club seats, renting suites, stadium naming rights fees, and concessions are better off financially than their counterparts who can’t. If the cap is abolished the higher revenue- producing teams will have the upper hand in acquiring free agents and re-sign their players.
Not including each NFL owner’s net worth, how do the Baltimore Ravens measure up financially compared with the league, and more importantly, their AFC North counterparts?
Using data compiled after the 2004 season, Forbes Magazine (9/1/05) listed all NFL teams in terms of their overall value, annual revenues (including local), debt/value ratio (including stadium debt), and operating income (profit). Compared with the rest of the league the Ravens ranked 11th in both overall market value ($864M) and annual revenues ($192M), but dropped to 19th in operating income ($32.7M). Compared to the AFC North the Ravens were 2nd in total revenues (behind Cleveland) but last in operating income (profits before taxes). The Ravens ranked first in gate receipts ($6M more than Cincinnati), but also spent $18 million more in salaries/bonuses than the Bengals, and $9 million more than the Steelers. Interestingly, the Bengals have the highest operating income ($45.6M) on the lowest revenue stream ($171M). Overall, the Ravens are competitive with their AFC North counterparts, above the league average (188.4M) in revenues, and right at the league average (32.4M) in operating income.
Below is a comparison between the Ravens and the AFC North (bold), as well as the top and bottom revenue producing teams (all in millions of dollars):
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