Hope they don't pay

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DFWCC
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Hope they don't pay

Post by DFWCC » Wed Jul 01, 2015 2:43 pm

Hope they don't pay this guy a lot of money.
The Stats for the PIFL are horrible.
Still waiting for att numbers from
Columbus Jun17th,
Erie Jun 6th,
Richmond Jun 6th, 20th, & 29th, come on! the 6th?
Trenton Jun 20th.

On the Jun 29th PO game at Richmond which I viewed on UStream, the stats
guy didn't know where he was. Site is listed as unknown.

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Post by suge night » Wed Jul 01, 2015 3:26 pm

You point out One of the many still weaknesses in these indoor leagues participating in minor league sports, these stats may not seem to be a big deal but they are as it gives background and history and store history of information that could be used in the right hands, it simply shows that as the old saying goes the more things change the more it stays the same, but look around the might T-Rex doesn't walk the earth in its former form , in short leagues and even more important teams get it or continue to be :confused:

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Sam Hill
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Post by Sam Hill » Wed Jul 01, 2015 6:40 pm

The idea that anyone in the PIFL would make a lot of money is amusing to me.
Old enough to remember when bashing the ABA was fun.

DFWCC
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Post by DFWCC » Thu Jul 02, 2015 1:15 pm

That's standard.
If you pay $700.000.000 for a pro franchise and get a 5% return that gets you about $3.5mill.
Using the same formula a team worth about $150K could reasonably expect
about a $7.5K return, not a lot and that may be high given the marketing prowess of the league..... ZERO

Granted all owners would like to make a bag of sheckels, but some are in it to increase the value of the team therefore making money on the backend when they sell. Others use it as a tax deduction. Same as many use mortgage interest for a tax deduction come April.
There are a lot ways to use business losses in one business especially if you own other businesses.

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Sam Hill
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Post by Sam Hill » Thu Jul 02, 2015 3:05 pm

How many PIFL teams have increased in value and been sold?

Franchises costing $700M increase in value.

Franchises costing $150K in leagues where people can't get their acts together have no expectation of value increase, and, more often than not (far more often than not) result in the initial investment + the costs of doing business for a while being completely lost, the team (and, also often, the league) going under and the investor wondering why the hell he or she did it in the first place.
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Post by DFWCC » Thu Jul 02, 2015 4:13 pm

2 minor league teams in Erie, Pa just sold this year.
Last wk Erie Otters hockey team sold for $7.2mil
and about 5 months ago the Erie Seawolves were bought
for $10+ million. I know the original cost was $1.2mil.

The Erie Explosion were in at least 2 leagues that folded, yet they
are in there 8th continuous yr in Erie. Granted there were 2 different sets of owners. The current owner was part of the 2nd group and bought out the
other owners and has been the soul owner for the last 5yrs.


We live in different parts of the country. Maybe in Colorado sports franchises don't sell well or increase in value, but that's Colorado.

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Post by suge night » Thu Jul 02, 2015 5:33 pm

Its, the type of sport those sold organizations are part of a system that has an image of value, being part of a group once for a minor league hockey franchise that price tag started at 8mill where as a indoor football team can be had for 30 40 100 thousand depending on who's buying, its not even in the conversation of increase value.

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Post by preeths » Thu Jul 02, 2015 6:31 pm

How many indoor football teams have sold for a profit?

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Pounder
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Post by Pounder » Thu Jul 02, 2015 8:39 pm

[quote=""DFWCC""]2 minor league teams in Erie, Pa just sold this year.
Last wk Erie Otters hockey team sold for $7.2mil
and about 5 months ago the Erie Seawolves were bought
for $10+ million. I know the original cost was $1.2mil.
[/quote]

CHL and Minor League Baseball have good track records.
Mean Spirited Blogger #107

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Post by SWSAM » Thu Jul 02, 2015 10:10 pm

[quote=""DFWCC""]2 minor league teams in Erie, Pa just sold this year.
Last wk Erie Otters hockey team sold for $7.2mil
and about 5 months ago the Erie Seawolves were bought
for $10+ million. I know the original cost was $1.2mil.

The Erie Explosion were in at least 2 leagues that folded, yet they
are in there 8th continuous yr in Erie. Granted there were 2 different sets of owners. The current owner was part of the 2nd group and bought out the
other owners and has been the soul owner for the last 5yrs.


We live in different parts of the country. Maybe in Colorado sports franchises don't sell well or increase in value, but that's Colorado.[/quote]

Comparing a low-level indoor football team with an OHL franchise (which did go Ch. 11 this year) or a AA baseball team is comparing apples and bowling balls.

The Eastern League has been in operation for over 90 years, and has a finite number of teams. Your franchise is going to appreciate in value, because the Professional Baseball Agreement sets standards and requirements for revenue and stadium specifications. Likewise, Hockey Canada has requirements for junior teams. That stability and quality assurance will more often than not allow that franchise to appreciate in value.

Contrast that with a PIFL team, where the entry barriers are low. As a result, instability is more the rule because many teams are undercapitalized. More often than not, if somebody wants ownership in a market, s/he can wait for the incumbent franchise to invariably fold and simply pay a new franchise fee rather than acquire the legacy debt of the previous franchise.

Your prime example of this was the late USFL, which was fraught with financial issues and rapid overexpansion. Out of all the teams that shuttled in and out in the three seasons of the league, exactly one franchise (the Denver Gold) was purported to have ever sold for a profit, which was after the first -- and most successful -- season of the league.

It's not an exact comparison, but take a look sometime at what your entry barriers are to owning a fast food franchise. To even be considered, you typically need a net worth of $1.5 to $2.0 million and at least half that number in liquid assets. Those barriers ensure a higher quality of franchise owner, and is less risky to the brand. Because of those barriers and standards, that investment will appreciate in value.
Last edited by SWSAM on Thu Jul 02, 2015 10:20 pm, edited 1 time in total.

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