Reply #3: Re-post from a month ago: it's not all the owners who are at fault [View All]

[Auggie]

This comes from San Francisco Chronicle columnist Gwen Knapp who wrote about the potential lock-out on January 20th. Seems like time to post it again. As Knapp reported...

...the "enormous local revenue" producing teams, like the Cowboys, Redskins and Patriots, inflate the salary cap for smaller local revenue producing teams like the Packers. That's why the Packers (the only publicly-owned team) reported a drop in operating profit of just over $10 million from 2009 to 2010, even though they made $10 million more in revenue during that time.

The reason is that players costs increased by $22.1 million because of the inflated cap increases triggered by teams like the Cowboys whose local earnings count towards the salary cap. Knapp further points out that greater revenue sharing would solve that problem for teams like the Packers, but that owners, like Jerry Jones, would rather have that revenue come from the players.

Knapp's article is here: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/01/29/SPRD1HFT6A.DTL#ixzz1Cj1leB1J

As I said earlier, it helps to understand there's probable dispute here among owners as well — those that make huge sums from local revenue and drive up the salary cap, and those who don't and are seeing profits evaporate or are experiencing losses.