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I saw a post on Twitter saying that the pandemic could cause a low enough drop in revenue that the salary cap could actually drop $70 mill per team next year.

Imagine how messed up that would be.

Mag wrote: ↑

Wed Apr 22, 2020 10:21 am

I saw a post on Twitter saying that the pandemic could cause a low enough drop in revenue that the salary cap could actually drop $70 mill per team next year.

Imagine how messed up that would be.

Yes, we better enjoy this past year then when we spent some jack. Won't happen next year.

It could get a whole lot worse than salary cap. Think of these new stadiums with bonds that won't be funded. Reduced tax revenues for the city due to unemployment. No ticket, parking, vendor revenues. The television contracts only cover so much for the NFL. All the other revenues keep the lights on. Worrying about what the players make is irrelevant if they don't have a place to play and the city shuts the stadium down because they can't afford to operate it.

If the NFL, or any other pro league for that matter, manages to complete the 2020 season either in part or total I will be the first one to stand up and applaud their efforts. The disaster in the making is with college and grade school sports this fall and how it will impact pro sports 1,2,3 seasons down the road. It is impossible to wrap your head around the entirety of all things Covid-19.

stripesincarolina wrote: ↑

Wed Apr 22, 2020 12:13 pm

It could get a whole lot worse than salary cap. Think of these new stadiums with bonds that won't be funded. Reduced tax revenues for the city due to unemployment. No ticket, parking, vendor revenues. The television contracts only cover so much for the NFL. All the other revenues keep the lights on. Worrying about what the players make is irrelevant if they don't have a place to play and the city shuts the stadium down because they can't afford to operate it.

If the NFL, or any other pro league for that matter, manages to complete the 2020 season either in part or total I will be the first one to stand up and applaud their efforts. The disaster in the making is with college and grade school sports this fall and how it will impact pro sports 1,2,3 seasons down the road. It is impossible to wrap your head around the entirety of all things Covid-19.

+1

stripesincarolina wrote: ↑

Wed Apr 22, 2020 12:13 pm

It could get a whole lot worse than salary cap. Think of these new stadiums with bonds that won't be funded. Reduced tax revenues for the city due to unemployment. No ticket, parking, vendor revenues. The television contracts only cover so much for the NFL. All the other revenues keep the lights on. Worrying about what the players make is irrelevant if they don't have a place to play and the city shuts the stadium down because they can't afford to operate it.

If the NFL, or any other pro league for that matter, manages to complete the 2020 season either in part or total I will be the first one to stand up and applaud their efforts. The disaster in the making is with college and grade school sports this fall and how it will impact pro sports 1,2,3 seasons down the road. It is impossible to wrap your head around the entirety of all things Covid-19.

Let's take this one day at a time and not get ahead of ourselves here. We can not predict the future and the more we are learning about this virus the more I honestly believe we'll be back to normal sooner rather then later.

MeatHeadbengal wrote: ↑

Wed Apr 22, 2020 1:55 pm

stripesincarolina wrote: ↑

Wed Apr 22, 2020 12:13 pm

It could get a whole lot worse than salary cap. Think of these new stadiums with bonds that won't be funded. Reduced tax revenues for the city due to unemployment. No ticket, parking, vendor revenues. The television contracts only cover so much for the NFL. All the other revenues keep the lights on. Worrying about what the players make is irrelevant if they don't have a place to play and the city shuts the stadium down because they can't afford to operate it.

If the NFL, or any other pro league for that matter, manages to complete the 2020 season either in part or total I will be the first one to stand up and applaud their efforts. The disaster in the making is with college and grade school sports this fall and how it will impact pro sports 1,2,3 seasons down the road. It is impossible to wrap your head around the entirety of all things Covid-19.

Let's take this one day at a time and not get ahead of ourselves here. We can not predict the future and the more we are learning about this virus the more I honestly believe we'll be back to normal sooner rather then later.

I think college football is in a tough space, especially in an uncertain environment. If "everyone" agrees that it's safe to return to in-person classes, safe to start playing football, that's one thing. But if we're even in a situation where it's not clear and there's no consensus, the prospects for college football get really interesting.

I think there are a ton of incentives to play in the fall if they can--the financial incentives alone are massive, plus it's something that basically everyone involved wants--players want to play, coaches want to coach, ADs want the cash to flow.

But at the same time, I suspect that universities more generally are going to be very cautious. I know college kids aren't technically "kids," but it's just a lawsuit waiting to happen if COVID-19 spreads through a campus and a bunch of kids get sick, even more so if anyone dies. And to be clear, I'm not talking about what you or I or anyone on this board thinks about COVID-19, I'm talking about what people who have the threat of institution-crippling lawsuits hanging over their heads may be thinking if it's not absolutely clear that it's safe to return to school as usual.

Exactly right Exile. And Meat, I agree with you too. I wasnt talking about The Rona itself, merely trying to understand the economic fallout from the damage that has already been done. The "cure" will very likely worse than the disease regardless of whether or not anyone believes it was a necessary move. Economically speaking the world has been changed for a long damn time. We havent even seen the worst of it yet.

Mag, curious how this has impacted your brewery and future? Maybe another thread for this discussion.

Here in the UK the alcohol (sales through shops) is through the roof but all the pubs and clubs are closed so one half of brewers those that serve retail market are flying high, the others that serve the trade are on their arse and looking at new business models. Strange times indeed.

stripesincarolina wrote: ↑

Wed Apr 22, 2020 10:42 pm

Exactly right Exile. And Meat, I agree with you too. I wasnt talking about The Rona itself, merely trying to understand the economic fallout from the damage that has already been done. The "cure" will very likely worse than the disease regardless of whether or not anyone believes it was a necessary move. Economically speaking the world has been changed for a long damn time. We havent even seen the worst of it yet.

Mag, curious how this has impacted your brewery and future? Maybe another thread for this discussion.

We took a big hit. Coming into the year, we were on a big upswing. February was a record month for us (typically a bad month for beer sales). We had just opened up new markets in San Antonio and Austin. Just as things started shutting down, we signed a deal with the Frisco Roughriders, the AA affiliate of the Texas Rangers to face our own concession area and provide craft beer to the ballpark. We're expecting to double our overall revenue by the summer. Instead, we have seen a 70% drop in taproom revenue, and a 50% drop in offsite sales.

Luckily we run a lean ship and have a good relationship with our landlords and debt holders. We have deferments on payments and plan to negotiate a temporary reduction in payments moving forward. My partners and I do the majority of the work, so our payroll wasn't a burden, and if needed, we can lay ourselves off, but still continue to work. What staff we do have, we've been able to keep employed, with the exception of a few part time bartenders.

We are cautiously optimistic. We were lucky enough to get the PPP. That gives us 2 months of keeping our staff employed, plus a little relief in overhead. We've also applied for the SBA disaster relief loans too, and are hopeful they come through. We have the size and flexibility to can beer on a large scale, so we can adjust our business to take advantage of that market. Our distributor is adding Houston and Lubbock to our network. If our distribution network continues to grow we should be in good shape.

Unfortunately no matter how we navigate the market, we need our local bars, restaurants, and stores to survive. If we lose too many of those, we'll continue to struggle. So if you guys drink beer, support your local breweries as best as you can. It's expected as many as 60% will close. If you don't drink, support your local restaurants by getting takeout.

I think my family alone has been keeping the local craft breweries open. Our beer consumption increased with the quarantine. What else do you have to do with all these annoying kids running around?!

Send some of that beer up here to Ohio. We’ll make sure it gets drunk.