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Raiders don't have enough money to fire McDaniels


Big Turk

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2 hours ago, Greg S said:

This can't be true. The TV revenue plus the new stadium makes a lot of money. The league makes around 20 billion a year. This has to be BS. 

 

I believe it and this isn’t the first time we’ve heard of financial issues with the Raiders.

 

1) They we’re 4 years past due in paying parking revenue to the county. 

 

2) They wanted to re-sign Khalil Mack but didn’t have enough money to fulfill the NFL’s escrow rule on guaranteed contracts. 

 

3) A dozen Raiders employees resigned or were let go over concerns of “financial disorder” in the organization.

 

4) They reportedly took a $500M loss in 2020.

 

5) They still owe $65M to Oakland and they had to take out a nearly $1 Billion dollar loan to built their stadium. Imagine the debt payment on that each year.

 

Oh and they had to pay a $350M relocation fee but they didn’t have the money to do so, so the NFL made it a debt service that they now pay, I assume, yearly.

 

 

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8 hours ago, BobbyC81 said:


I don’t believe this with all the TV money they get.

 

2 hours ago, Greg S said:

This can't be true. The TV revenue plus the new stadium makes a lot of money. The league makes around 20 billion a year. This has to be BS. 

 

1 hour ago, djp14150 said:


i don’t either

 

TV money covers players salaries.  Gate/ local revenue covers the operational costs.  Sure having to pay out $30M at once coukd make team budget a little tight.

 

Business profits are not as cut-and-dry as some think. I own a few small businesses with miniscule sales in comparison to NFL but with great sales/sq. ft and a very healthy net margin... But I have friends with much larger businesses, huge sales by comparison to mine, always busy and popular- but not profitable.

 

In my esrimation, it's hard to make real money in business if 1. The owners core-competency isn't running the business, 2. Owner is remote or not involved in day-to-day, or 3. Owner lives above their means. These are all very common problems. And Mark Davis shows all the signs.

 

Truth is this: revenue is not an indicator of profit or success. Unless we saw the (incredibly complicated) books that the raiders team keeps, we just don't know jack!

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1 hour ago, djp14150 said:


i don’t either

 

TV money covers players salaries.  Gate/ local revenue covers the operational costs.  Sure having to pay out $30M at once coukd make team budget a little tight.

 

You are forgetting about the debt service on the $1 Billion new stadium AND the debt service on the $378 million relocation fee they had to take out from a bank due to not having the money to pay it upfront.  That adds quite a bit to their costs every year and they were already one of the most "cash poor" franchises there was prior to this...in fact the move to Las Vegas was in large part driven by this---trying to improve cash flow.

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So one of the things that has been a thing with rich v poor teams that is very real is have liquid cash on hand and how it allows many teams to do more then others. The Raiders and Chargers are both teams historically while they can spend to the "cap" the ability to front load bonuses, pay things later in a higher amount etc.. doesn't happen as they do have the cash to make things go away. The same when it comes to improving facilities and many other extras. 

 

As the league has added multi billion owners over the last two decades teams like the Bengals/Raiders/Chargers get left behind in so many areas. The fact that Cincy still practices outdoors and only now is getting an indoor facility is wild. Even the Bills have had the fieldhouse going back to the late 90s. The Pegula's having the wealth and resources they do is one of the underrated assets the team now has in its ability to compete. Buffalo doesn't get Cole Beasley who was central to helping Josh in years 2-3 without that. People can say what they want about Jerry Jones, but on a pure business side he turned the Cowboys and by extension the NFL into a business that makes billions when games are not being paid. 

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A couple of comments:

 

1.  Davis is not as wealthy as most owners.  Most owners made their money in other businesses - real estate, gas & oil, tech, Wal-mart, etc.  They are billionaires for whom football is a side business and hobby.  The Davis family, to my knowlege, has no outside business outside of football.  Al Davis was a football coach who bought a small stake in the team and worked his way up to become the majority owner, and now his son has taken over.  The Davis family does not have "outside" money.

 

2. That said, I believe that the Raiders have enough cash earned through football to fire McDaniels if they wanted to.  The real issue is that you don't fire a coach halfway into his first season.  While I believe that McDaniels was a poor hire, I also believe you have to give it a chance to see if he can work it out.  You to go until at least the middle of next season before cutting the cord.  The franchise needs some level of stability.  They are on their third coach in a year's time.  You can't just move on to a 4th.

Edited by msw2112
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22 minutes ago, Heavy Kevi said:

 

 

 

Business profits are not as cut-and-dry as some think. I own a few small businesses with miniscule sales in comparison to NFL but with great sales/sq. ft and a very healthy net margin... But I have friends with much larger businesses, huge sales by comparison to mine, always busy and popular- but not profitable.

 

In my esrimation, it's hard to make real money in business if 1. The owners core-competency isn't running the business, 2. Owner is remote or not involved in day-to-day, or 3. Owner lives above their means. These are all very common problems. And Mark Davis shows all the signs.

 

Truth is this: revenue is not an indicator of profit or success. Unless we saw the (incredibly complicated) books that the raiders team keeps, we just don't know jack!

 

Plus the cap is there for a competitive balance purpose - signing bonuses are paid up front.  They gave Adams and Jones 27M in signing bonuses, and have another 28M in cash roster bonuses to them in 2023.  13M more to Crosby, and a guaranteed 10.5 roster bonus in 2023.  


Beyond that there's definitely bills associated with relocation and new stadium that need to get paid, as well as Gruden and all the other people you fired who were under contract. 

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4 minutes ago, msw2112 said:

A couple of comments:

 

1.  Davis is not as wealthy as most owners.  Most owners made their money in other businesses - real estate, gas & oil, tech, Wal-mart, etc.  They are billionaires for whom football is a side business and hobby.  The Davis family, to my knowlege, has no outside business outside of football.  Al Davis was a football coach who bought a small stake in the team and worked his way up to become the majority owner, and now his son has taken over.  The Davis family does not have "outside" money.

 

2. That said, I believe that the Raiders have enough cash earned through football to fire McDaniels if they wanted to.  The real issue is that you don't fire a coach halfway into his first season.  While I believe that McDaniels was a poor hire, I also believe you have to give it a chance to see if he can work it out.  You to go until at least the middle of next season before cutting the cord.  The franchise needs some level of stability.  They are on their third coach in a year's time.  You can't just move on to a 4th.

 

I get that they made the playoffs a year ago, and spent on new players - but they went 7-2 in 1 score games and 4-0 in OT.  

 

As for this year?  The offense hasn't been amazing set the world on fire, but they're mostly fine.  The defense however, has been among the worst in the NFL.  They have 3 interceptions, and 6 total takeaways in 9 games, 28th in yards and points allowed, they dont stop the pass or run really.  Chandler Jones got Miller money, and has .5 sacks. 

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12 minutes ago, msw2112 said:

A couple of comments:

 

1.  Davis is not as wealthy as most owners.  Most owners made their money in other businesses - real estate, gas & oil, tech, Wal-mart, etc.  They are billionaires for whom football is a side business and hobby.  The Davis family, to my knowlege, has no outside business outside of football.  Al Davis was a football coach who bought a small stake in the team and worked his way up to become the majority owner, and now his son has taken over.  The Davis family does not have "outside" money.

 

2. That said, I believe that the Raiders have enough cash earned through football to fire McDaniels if they wanted to.  The real issue is that you don't fire a coach halfway into his first season.  While I believe that McDaniels was a poor hire, I also believe you have to give it a chance to see if he can work it out.  You to go until at least the middle of next season before cutting the cord.  The franchise needs some level of stability.  They are on their third coach in a year's time.  You can't just move on to a 4th.

 

I would add to your 2nd point the Raiders were an unsustainable 7-1 in one score games last year. The pendulum has swung big time as they are 0-6 in one score games this year including the awful OT loss to ARZ. The Raiders across this year and last are probably a .500 esq team with some talent and luck is evening out each way now. Carr has always been an above average but not elite starting QB. Doesn't mean he hasn't had flashes and on a more ready made team I wouldn't be surprised if he had seasons more like last year. On the flip side it isn't the worst thing for the Raiders to draft top 3, grab a top young QB, and reset. They have talent to support a young QB and McDaniels could groom him to the system he runs.

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15 minutes ago, Bleeding Bills Blue said:

 

Plus the cap is there for a competitive balance purpose - signing bonuses are paid up front.  They gave Adams and Jones 27M in signing bonuses, and have another 28M in cash roster bonuses to them in 2023.  13M more to Crosby, and a guaranteed 10.5 roster bonus in 2023.  


Beyond that there's definitely bills associated with relocation and new stadium that need to get paid, as well as Gruden and all the other people you fired who were under contract. 

 

Spotrac has them paying out $218M this year in cash.

 

They also still owe Gruden money from the settlement in 2021.

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23 minutes ago, corta765 said:

 

 Carr has always been an above average but not elite starting QB. Doesn't mean he hasn't had flashes 

We should really start a Bills Mafia fund raising effort for Carr's charity. Without him having one of those flashes beating the Bills in week 16 of 2014, Saint Doug never resigns and Whaley prolly still here too!

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5 minutes ago, plenzmd1 said:

We should really start a Bills Mafia fund raising effort for Carr's charity. Without him having one of those flashes beating the Bills in week 16 of 2014, Saint Doug never resigns and Whaley prolly still here too!

 

Lol think I had PTSD reading Saint Doug

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3 hours ago, strive_for_five_guy said:


I mean, they also owe tons of money on the new stadium, owed tons of guaranteed money to Gruden, and have lots of other expenses.  Yes, lots of revenue sources for each team in the league, but doesn’t mean expenses far outweigh revenue and is putting the Raiders in a cash poor position.

 

I think Raiders will try to not honor guarantee saying he violated contract with his actions.

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21 minutes ago, Limeaid said:

 

I think Raiders will try to not honor guarantee saying he violated contract with his actions.


Unless I missed an update, haven’t they already settled?

 

https://www.cbssports.com/nfl/news/raiders-reach-undisclosed-contract-settlement-with-jon-gruden-just-weeks-after-coachs-resignation-over-emails/amp/

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