|
Post by rooseveltcardsfan on Sept 25, 2018 11:03:52 GMT -7
The Cardinals are a family business. Unfortunately the family doesn’t have access to billions of dollars in cash. The rams owner does. If the Bidwill family had 300 million sitting around, they could pay huge signing bonuses to a handful of players like the rams have. The issue the rams will have are years down the road re: prepaid signing bonuses are not small problems.. just deferred problems.. deferred until after they get their new stadium built, and sell the seats. But the CAP looms equally on every team.
I think there is a good possibility that the rams may be insolvent in the next 5-6 years.. where as the Cardinals won’t be. It’s important to the Bidwill family to have a winning franchise, but it’s more important that they protect the family business.. which is an NFL FOOTBALL TEAM...
jmho
|
|
|
Post by One_Heartbeat on Sept 25, 2018 13:01:10 GMT -7
The Cardinals are a family business. Unfortunately the family doesn’t have access to billions of dollars in cash. The rams owner does. If the Bidwill family had 300 million sitting around, they could pay huge signing bonuses to a handful of players like the rams have. The issue the rams will have are years down the road re: prepaid signing bonuses are not small problems.. just deferred problems.. deferred until after they get their new stadium built, and sell the seats. But the CAP looms equally on every team. I think there is a good possibility that the rams may be insolvent in the next 5-6 years.. where as the Cardinals won’t be. It’s important to the Bidwill family to have a winning franchise, but it’s more important that they protect the family business.. which is an NFL FOOTBALL TEAM... jmho I highly doubt that cash flow concerns would be a reason for Bidwill, Inc. to not pay large, upfront signing bonuses. Especially after all the additional stadium cash. That was the whole "we can't compete" refrain from the old days, so if Mike were to trot out "we suck because we're a little short on cash when it's time to pay signing bonuses for the big studs" he would have a revolt on his hands. Furthermore, if the cap is enforced it would just be a cash flow issue, e.g. if Mike lands 5 big FAs and pays out $75 million of the $100 million tab up front his ongoing salary payout would be relatively small.
You are completely correct about football being the family business. Mike may have more headaches on his hands in that he has to fund trust funds for the next generation(s) that will "deserve" a cut of Bidwill, Inc. Hopefully he's brought in some financial heavy hitters to help him through cutting off the generations that won't get their full "fair share" of the family business. It's actually a big issue that crashes and burns a fair amount of family businesses that don't learn the art of saying no at some point. I don't know how many offspring have been born into the fortune. I know Mike has a sister and I think two brothers, so unless they each average five kids each there's probably not an immediate concern there. Maybe there's a lot of cousins and such who would prefer a trust fund to a job / career, who knows.
|
|
|
Post by rooseveltcardsfan on Sept 25, 2018 14:34:45 GMT -7
The Cardinals are a family business. Unfortunately the family doesn’t have access to billions of dollars in cash. The rams owner does. If the Bidwill family had 300 million sitting around, they could pay huge signing bonuses to a handful of players like the rams have. The issue the rams will have are years down the road re: prepaid signing bonuses are not small problems.. just deferred problems.. deferred until after they get their new stadium built, and sell the seats. But the CAP looms equally on every team. I think there is a good possibility that the rams may be insolvent in the next 5-6 years.. where as the Cardinals won’t be. It’s important to the Bidwill family to have a winning franchise, but it’s more important that they protect the family business.. which is an NFL FOOTBALL TEAM... jmho I highly doubt that cash flow concerns would be a reason for Bidwill, Inc. to not pay large, upfront signing bonuses. Especially after all the additional stadium cash. That was the whole "we can't compete" refrain from the old days, so if Mike were to trot out "we suck because we're a little short on cash when it's time to pay signing bonuses for the big studs" he would have a revolt on his hands. Furthermore, if the cap is enforced it would just be a cash flow issue, e.g. if Mike lands 5 big FAs and pays out $75 million of the $100 million tab up front his ongoing salary payout would be relatively small.
You are completely correct about football being the family business. Mike may have more headaches on his hands in that he has to fund trust funds for the next generation(s) that will "deserve" a cut of Bidwill, Inc. Hopefully he's brought in some financial heavy hitters to help him through cutting off the generations that won't get their full "fair share" of the family business. It's actually a big issue that crashes and burns a fair amount of family businesses that don't learn the art of saying no at some point. I don't know how many offspring have been born into the fortune. I know Mike has a sister and I think two brothers, so unless they each average five kids each there's probably not an immediate concern there. Maybe there's a lot of cousins and such who would prefer a trust fund to a job / career, who knows.
1HB I appreciate your well thought out responses to all the threads you respond too, perhaps I didn’t define my thoughts properly. What I see is an ability for some nfl owners to have the necessary cash on hand to prepay a large percentage of a signing bonus, or not.. and I might not be using the proper verbiage in explaining the signing bonuses that I’m talking about. what I’m considering as a bonus is the guaranteed money part of nfl contracts. I believe it is possible for all nfl franchises to pay only a potion of any guaranteed monies at the time of the contract signing, or if the team wants too, to pay all of the guaranteed money up front. The guaranteed money, or signing bonus is then spread over the length of the contract. I will give an example, so you can hopefully understand my point.. not because you can’t understand the question, but because I don’t do a good job of explaining it..my bad!! Example: say the cards bring in 5 high priced FA next year. And thier contracts avg. 100 million over 5 years with 60 million guaranteed to each FA. The cardinals agree to pay each player all the guaranteed money up front.. that adds up to 300 million paid out of the Cardinals pocket all at once. I don’t think that is possible for the Bidwill family to do.. But some of the nfl franchise owners can come up with that amount of money, fairly easily.. That would be an advantage to the teams with owners that are multi billionaire’s, the disadvantage to a team doing that is, if the player doesn’t fulfill his contract, for one reason or another. Then the only recourse a team would have is to sue the player to get the unearned signing bonus/guaranteed money back.. the money could gone though.. so there is some danger involved in prepaid guaranteed money.. My understanding is the rams prepaid large amounts of the guaranteed money up front to the players, in this years contracts.. that may be foolish, but if they have the cash to do it, it’s legal.. And furthermore if a player has 2 or more teams interested in their services with contracts that are identical in size, and the only difference is when the guaranteed money is paid in full. I would sign the contract that paid the guaranteed money the soonest.. sorry about the length of the response.. Go Cardinals!
|
|
biggs
Pro Bowler
Posts: 1,076
|
Post by biggs on Sept 25, 2018 15:05:28 GMT -7
I highly doubt that cash flow concerns would be a reason for Bidwill, Inc. to not pay large, upfront signing bonuses. Especially after all the additional stadium cash. That was the whole "we can't compete" refrain from the old days, so if Mike were to trot out "we suck because we're a little short on cash when it's time to pay signing bonuses for the big studs" he would have a revolt on his hands. Furthermore, if the cap is enforced it would just be a cash flow issue, e.g. if Mike lands 5 big FAs and pays out $75 million of the $100 million tab up front his ongoing salary payout would be relatively small.
You are completely correct about football being the family business. Mike may have more headaches on his hands in that he has to fund trust funds for the next generation(s) that will "deserve" a cut of Bidwill, Inc. Hopefully he's brought in some financial heavy hitters to help him through cutting off the generations that won't get their full "fair share" of the family business. It's actually a big issue that crashes and burns a fair amount of family businesses that don't learn the art of saying no at some point. I don't know how many offspring have been born into the fortune. I know Mike has a sister and I think two brothers, so unless they each average five kids each there's probably not an immediate concern there. Maybe there's a lot of cousins and such who would prefer a trust fund to a job / career, who knows.
1HB I appreciate your well thought out responses to all the threads you respond too, perhaps I didn’t define my thoughts properly. What I see is an ability for some nfl owners to have the necessary cash on hand to prepay a large percentage of a signing bonus, or not.. and I might not be using the proper verbiage in explaining the signing bonuses that I’m talking about. what I’m considering as a bonus is the guaranteed money part of nfl contracts. I believe it is possible for all nfl franchises to pay only a potion of any guaranteed monies at the time of the contract signing, or if the team wants too, to pay all of the guaranteed money up front. The guaranteed money, or signing bonus is then spread over the length of the contract. I will give an example, so you can hopefully understand my point.. not because you can’t understand the question, but because I don’t do a good job of explaining it..my bad!! Example: say the cards bring in 5 high priced FA next year. And thier contracts avg. 100 million over 5 years with 60 million guaranteed to each FA. The cardinals agree to pay each player all the guaranteed money up front.. that adds up to 300 million paid out of the Cardinals pocket all at once. I don’t think that is possible for the Bidwill family to do.. But some of the nfl franchise owners can come up with that amount of money, fairly easily.. That would be an advantage to the teams with owners that are multi billionaire’s, the disadvantage to a team doing that is, if the player doesn’t fulfill his contract, for one reason or another. Then the only recourse a team would have is to sue the player to get the unearned signing bonus/guaranteed money back.. the money could gone though.. so there is some danger involved in prepaid guaranteed money.. My understanding is the rams prepaid large amounts of the guaranteed money up front to the players, in this years contracts.. that may be foolish, but if they have the cash to do it, it’s legal.. And furthermore if a player has 2 or more teams interested in their services with contracts that are identical in size, and the only difference is when the guaranteed money is paid in full. I would sign the contract that paid the guaranteed money the soonest.. sorry about the length of the response.. Go Cardinals! "The NFL may require that by a prescribed date certain, each Club must deposit into a segregated account the present value, calculated using the Discount Rate, less $2,000,000, of deferred and guar anteed compensation owed by that Club with respect to Club funding of Player Contracts involving deferred or guaranteed compensation ... "The present value of any future years' salary payable to a player pursuant to an injury guarantee provision in his NFL Player Contract(s), shall not be considered owed by a Club under this Section until after the Club has acknowledged that the player's injury qualifies him to receive the future payments." Cash flow may indeed play into how contracts are structured for different owners. The rumor regarding Mack was the Raiders didn't have the money to escrow for his contracts and couldn't sign him. The salary cap over time insures every team will spend X for players. That doesn't mean cash flow doesn't come into the equation, it does. Over time that may not matter since it should balance out. Since teams are usually ascending or descending, the time and cash flow might matter a lot. In the case of the Rams. They have the money. They are also trying to inflate the price of PSL. For instance the Rams will be charging 100K PSL for their high end seats while the Chargers will be charging 75K for the same seats. Don't think the Rams didn't know the Chargers were on the schedule this year.
|
|
|
Post by rooseveltcardsfan on Sept 25, 2018 15:16:40 GMT -7
1HB I appreciate your well thought out responses to all the threads you respond too, perhaps I didn’t define my thoughts properly. What I see is an ability for some nfl owners to have the necessary cash on hand to prepay a large percentage of a signing bonus, or not.. and I might not be using the proper verbiage in explaining the signing bonuses that I’m talking about. what I’m considering as a bonus is the guaranteed money part of nfl contracts. I believe it is possible for all nfl franchises to pay only a potion of any guaranteed monies at the time of the contract signing, or if the team wants too, to pay all of the guaranteed money up front. The guaranteed money, or signing bonus is then spread over the length of the contract. I will give an example, so you can hopefully understand my point.. not because you can’t understand the question, but because I don’t do a good job of explaining it..my bad!! Example: say the cards bring in 5 high priced FA next year. And thier contracts avg. 100 million over 5 years with 60 million guaranteed to each FA. The cardinals agree to pay each player all the guaranteed money up front.. that adds up to 300 million paid out of the Cardinals pocket all at once. I don’t think that is possible for the Bidwill family to do.. But some of the nfl franchise owners can come up with that amount of money, fairly easily.. That would be an advantage to the teams with owners that are multi billionaire’s, the disadvantage to a team doing that is, if the player doesn’t fulfill his contract, for one reason or another. Then the only recourse a team would have is to sue the player to get the unearned signing bonus/guaranteed money back.. the money could gone though.. so there is some danger involved in prepaid guaranteed money.. My understanding is the rams prepaid large amounts of the guaranteed money up front to the players, in this years contracts.. that may be foolish, but if they have the cash to do it, it’s legal.. And furthermore if a player has 2 or more teams interested in their services with contracts that are identical in size, and the only difference is when the guaranteed money is paid in full. I would sign the contract that paid the guaranteed money the soonest.. sorry about the length of the response.. Go Cardinals! "The NFL may require that by a prescribed date certain, each Club must deposit into a segregated account the present value, calculated using the Discount Rate, less $2,000,000, of deferred and guar anteed compensation owed by that Club with respect to Club funding of Player Contracts involving deferred or guaranteed compensation ... "The present value of any future years' salary payable to a player pursuant to an injury guarantee provision in his NFL Player Contract(s), shall not be considered owed by a Club under this Section until after the Club has acknowledged that the player's injury qualifies him to receive the future payments." Cash flow may indeed play into how contracts are structured for different owners. The rumor regarding Mack was the Raiders didn't have the money to escrow for his contracts and couldn't sign him. The salary cap over time insures every team will spend X for players. That doesn't mean cash flow doesn't come into the equation, it does. Over time that may not matter since it should balance out. Since teams are usually ascending or descending, the time and cash flow might matter a lot. In the case of the Rams. They have the money. They are also trying to inflate the price of PSL. For instance the Rams will be charging 100K PSL for their high end seats while the Chargers will be charging 75K for the same seats. Don't think the Rams didn't know the Chargers were on the schedule this year. Excellent response.. the way the cash is allocated due to those guarantees are secured is I’m sure heavily scrutinized.. and I’m also sure the is some type of insurance product out there that covers all that.. probably structured much like a surety Bond..interesting subject.. The PSL thing is very aggressive.. takes some big balls!! But it’s LaLa land..
|
|