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even if the comp rate for tickets is 30% right now, its worth the effort to build fan support. so if you have 10,000 fans in the seats, but only 7000 paid fans in the first season, and you are putting on a decent show. and the next season you still have 10,000 fans in the seats, but your comp rate went down to say 5%, that means you have 9500 paid fans in the seats, and have improved your fan base rather substantially, then you are seeing success in the league. so this years numbers are, while not meaningless, are less important than next years numbers. right now getting people into the seats and putting on a decent show is what is important.
even if the comp rate for tickets is 30% right now, its worth the effort to build fan support. so if you have 10,000 fans in the seats, but only 7000 paid fans in the first season, and you are putting on a decent show. and the next season you still have 10,000 fans in the seats, but your comp rate went down to say 5%, that means you have 9500 paid fans in the seats, and have improved your fan base rather substantially, then you are seeing success in the league. so this years numbers are, while not meaningless, are less important than next years numbers. right now getting people into the seats and putting on a decent show is what is important.
Don't disagree. I have no idea what the comp rate is. It could be 5% it could be 90%.. But, there's no question that you build on comps.. At least, that's the idea.
The question is.. Are they getting enough paid attendance to cover costs? we don't know where that breakpoint is..
From what I've seen.. I've been impressed with the product on field.
Don't disagree. I have no idea what the comp rate is. It could be 5% it could be 90%.. But, there's no question that you build on comps.. At least, that's the idea.
The question is.. Are they getting enough paid attendance to cover costs? we don't know where that breakpoint is..
From what I've seen.. I've been impressed with the product on field.
i dont think they are worrying about breaking even this season. in fact its likely that they are planning on losing money this season, and perhaps breaking even next season, hopefully as popularity grows. and remember its not just ticket sales, or even food sales. add in TV revenue, program sales, and things like football, and jersey sales, and other paraphernalia, and they just might break even this season, but dont count on it.
i dont think they are worrying about breaking even this season. in fact its likely that they are planning on losing money this season, and perhaps breaking even next season, hopefully as popularity grows. and remember its not just ticket sales, or even food sales. add in TV revenue, program sales, and things like football, and jersey sales, and other paraphernalia, and they just might break even this season, but dont count on it.
With Tom Dundon's $250 million investment in the AAF, for a league that was going to miss payroll after 2 weeks in operation, it seems they (the AAF) might have rushed opening this season to get a jump on the XFL that is starting in 2020.
While I don't see either the AAF or the "new" XFL being around a long time, it probably would have been better if the AAF had better backers/investors to start with or just waited to start in 2020, than needing a last minute lifeline bailout!
With Tom Dundon's $250 million investment in the AAF, for a league that was going to miss payroll after 2 weeks in operation, it seems they (the AAF) might have rushed opening this season to get a jump on the XFL that is starting in 2020.
While I don't see either the AAF or the "new" XFL being around a long time, it probably would have been better if the AAF had better backers/investors to start with or just waited to start in 2020, than needing a last minute lifeline bailout!
whether they started when they did, or waited until next season wouldnt matter. they were going to have the same issues either way. in fact it may have been even worse next season since the XFL would be starting up and would be competing for tv dollars.
I think it depends on the break even point that I mentioned before and how close they are to it.
If they're losing money hand over fist.. No.
if they're breaking even or at least close to it.. Perhaps. Though I suspect there will be changes.
2 of the games this weekend were home debuts.. Salt Lake and Atlanta. Those were also the two lowest attended games of the week. 10,400 and 10,700 paid attendance at each
Orlando and San Diego have had home games once this season already.. Orlando held serve with their 20k attendance from the opener, which is a good sign. San Diego went from 20k last week to 14k this week.
Just.. Spitballing numbers here. Average ticket is probably about $40. Range generally is from $20 to $155.
If they average 15k paid attendance.. That's $600k per game. 10 games per team, that's 80 games.. Divided by 2.. 40, times $600k.. That's 24 million
Each player has a contract for $70k/season (again, ballpark numbers)
Each team has 52 players.. 8 teams.. That's 416 players at $70k.. So, payroll is about $29 Million a year, players only.
So, we're at a $5 million deficit, not counting expenses, paying coaches, travel, league office, insurance, all the intangibles..
I'm sure they're getting some money from NFL Network and CBS for rights to air the games.. But.. I'd like to see that number swing the other way, where there's a $5 million profit.. Which would mean they need to average about 22-23k per game.
So.. Just by crunching numbers.. It doesn't look good, unless investors believe that it can grow and are willing to pump some money in to keep it afloat. The NFL wasn't willing to do that long-term with the World League, so, I can't imagine they would here.
I think they go more than a single season, but long term legs? Unless something changes.. I don't particularly see it.
The other problem.. Atlanta's attendance sucked as did Memphis, SLC and AZ. San Antonio is the only one pulling "good" numbers in attendance. Orlando isn't at the 22k I think is needed, but it's not bad. Birmingham is lower, but shows potential. San Diego had one OK and one kinda bad. So.. I suspect that all teams won't return if there is a next year at the same locations, which will tick off fan bases and any team that goes to a new city.. Why should the new city support them when they'll likely just leave? Self-fulfilling prophecy.
Last edited by Labonte18; 02-25-2019 at 10:11 AM..
i dont think they are worrying about breaking even this season. in fact its likely that they are planning on losing money this season, and perhaps breaking even next season, hopefully as popularity grows. and remember its not just ticket sales, or even food sales. add in TV revenue, program sales, and things like football, and jersey sales, and other paraphernalia, and they just might break even this season, but dont count on it.
See, that is what I was thinking as well, until I saw that they were already having financial problems after Week 2. That was baffling to me. Your business, no matter what it is, cant be that short-sighted.
apparently the missed payroll was the result of a computer glitch and not anything due to financial problems. and the $250 million investment was coincidence.
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