Wednesday, August 19, 2009

Favre signs for 25 million dollars

I wasn't suprised to see the Brett Favre unretired for the 3rd time. The thing that did suprise me was the dollar values. I'm not a big business of football guy (baseball is my sport) but was still suprised by the dollars. Brett wanted to play there and only there. I would have given him a $3 million dollar base pay and $500,000 per start personally. They took a huge risk on the field because of the "calcification of labrum" as they called it during the press confrence. I dug a little deeper to find that next year isn't guaranteed but then again neither are most NFL deals. This is why I also said the best sport to be an agent is baseball due to no salary cap and guaranteed contracts. The Favre deals calls for $6 million guaranteed and another $6 million if he plays. He could get injured in which they just cut him. So $12 million for 1 season of Favre assuming he's healthy.

From a business standpoint this looks to be a fiscal home run so far. I know that the team could have probably made the playoffs without him. But, I would make the argument you'd have to sign him due to the Bears getting Cutler could lead to knocking out the Vikings and that's why they "had to do it" from a football standpoint not just a business standpoint.

The Vikings are at $3 million and counting in tickets so far it's been reported
3,000 FSE x 10 games x $73 average ticket price = $2.19 million in season tickets
10000 individual tickets x $73 = $730,000
Plus Sponsorship
Plus Merchandise
Plus Suite Revenue
Plus the ancillary income (concessions and parking) of the above tickets
and the potential postseason kicker

The Vikings will sell out every game, have the #1 selling NFL jersey, be on TV more than ever (NBC flex will add them), and plus have a legitimate shot at the Super Bowl. This is going to really well for business side no matter what because the Vikings will collect all the money and breakeven before the first snap but I question from a football standpoint how good a 39 year old with a messed up labrum can do for you over the 5 month NFL season. The Vikings rolled the dice and for that I give them props for that.