Bisciotti can't be happy

[rmcjacket23]

The Ravens can write off the business expenses, so I'm not sure that is a reason for him to get angry.  I'd think he'd be a little more heated that we lost to the Oakland freaking Raiders.

LOL, they can, but writing off something on your taxes doesn't mean you get all that money back. In fact, he probably wouldn't get any of it back.

[FlackAttack]

yeah you wont get fully reimbursed via taxes for that. its more an investment for the teams production.

[salamander]

For him, its just a simple ROI consideration.

 

Does spending that extra $1M benefit the franchise? Harbaugh/the FO clearly convinced him that it did, and maybe in the end it did, because we can't possibly know the outcome of the other side of the decision.

 

But at some point, Bischotti is probably looking at this and saying "OK, I spent the $1M... what does this get me"?

 

When you win, you get more attention both publicly and locally, thus boosting  your viewership and increase your revenue in most cases. When you lose, the potential opposite can happen. Ravens have a strong enough following that these increases and decreases aren't really relevant in the short-term, but could potentially matter in the long-term.

 

Short answer... Steve is spending that money because he thinks it will yield him benefit in some form or fashion.

Agree. Steve would not have spent the money unless there was a benefit, whether directly or indirectly, whether the return was immediate or long term. The obvious objective was the benefit of a win, hopefully evolving in to another playoff and possible Super Bowl scenario. Now that would generate some income and raise the value of the team. Coming away with a loss was not part of the master plan so I hope the Ravens can still find their way back to the playoffs.  

[A Fish Called Yanda]

LOL, they can, but writing off something on your taxes doesn't mean you get all that money back. In fact, he probably wouldn't get any of it back.

 

Yeah, but I mean he won't be losing the full million at least.

[FlackAttack]

Yeah, but I mean he won't be losing the full million at least.

 

hes not losing anything

[rmcjacket23]

hes not losing anything

Well, by definition, he is. If you're spending money that you don't have to spend, and not yielding any revenue benefit from it, then you're losing something, which in this case would be money.

 

It doesn't matter if he does hundreds of millions in revenue or not, or how much the team is worth. If you're spending $1M on something, and you're not getting at least $1M in benefit of some kind from it, you've lost something.

[A Fish Called Yanda]

hes not losing anything

 

Steve owns 100% of the Baltimore Ravens.  Yes, he's not going to end the year owing anyone a million bucks, but if your net profit at the end of the season is $74 mil instead of $75 mil, the trip still cost you money.

[FlackAttack]

if you think Steve personally lost money from his finances due to the Ravens staying in Oakland for one week then lol.

 

Steve loses money if the team loses consistently. In that case, IF the ravens have a losing season, then you can say the week in Oakland was a fraction of a fraction of the cost.

[757RavensFan]

Beer and hot dog prices will increase by .50 next game, he'll get it back.  

[AsianRice]

For God sake? Lets Steve stay with Baltimore forever.......We owe Art Model even more than when he's bringing a winning team to the Maryland cuz he found us a right owner successor, Steve Bisciotti.....

[52520Andrew]

Beer and hot dog prices will increase by .50 next game, he'll get it back.

+ 35

[rmcjacket23]

Beer and hot dog prices will increase by .50 next game, he'll get it back.  

He's not seeing most of that either...

[FlackAttack]

He's not seeing most of that either...

 

yeah some people really dont understand how business works on here

[1/28/01]

LOL, they can, but writing off something on your taxes doesn't mean you get all that money back. In fact, he probably wouldn't get any of it back.

That's my favorite. Being a (multi) business owner myself, I love when I hear this from people. Not mocking anyone here, just adding to the comments.

[A Fish Called Yanda]

That's my favorite. Being a (multi) business owner myself, I love when I hear this from people. Not mocking anyone here, just adding to the comments.

 

Psh - we all know that when you write off your losses the government just hands you a big pile of cash to cover the difference.  Corporate Muricah! 

 

As I stated before, I didn't mean to imply that the costs will be forgiven, but that the Ravens will use it to offset some of the tax costs and therefore he won't lose exactly what he spent on the stay.

[A Fish Called Yanda]

if you think Steve personally lost money from his finances due to the Ravens staying in Oakland for one week then lol.

 

Steve loses money if the team loses consistently. In that case, IF the ravens have a losing season, then you can say the week in Oakland was a fraction of a fraction of the cost.

 

I don't think you understand what we're saying at all and I'm not sure how to make it any more clear, so I'm not going to bother.

 

Good day sir!

[1/28/01]

yeah some people really dont understand how business works on here

I can agree with that. And some with whom I've even quoted recently

[BSHU_Miami]

You have a franchise QB that is pretty much nationally mocked at that is the face of the franchise. We have no stars that are the best in the league.

tucker

[cushrinada1986]

According to Forbes, nearly $1.5B.

 

There's teams like the Redskins, Jets, Texans, etc. who really haven't won anything ever or at least haven't won anything in several decades that all, by financial standards, have higher "values" than the Ravens.

 

Winning is a major factor to the guys who own the team for the most part. It probably represents less than 10% of the value of a franchise if a franchise were actually up for sale.

Well when I see any of those cities have empty stands for a season and still turn a profit, Ill believe it...

[rmcjacket23]

Well when I see any of those cities have empty stands for a season and still turn a profit, Ill believe it...

Could be possible. Considering the level of revenue sharing going on, and that ticket sales is just the third biggest revenue stream for each franchise, it would certainly be feasible for a single season. Not to mention the fact that most teams sell out and still have thousands of empty seats in the stadium.

 

Not sustainable long-term though. 

[Dfence4champs2052]

I feel bad for our owner Steve and appreciate his willingness to spend the money to ease the hardship of back to back west coast games. Ravens should have won the game regardless of whether they stayed out west or not but Steve was willing to go the extra mile to help our chances to insure that win. We are fortunate to have Steve as our owner, willing to spend a million bucks to help his team. Tell you what, if I were a coach or player, I sure would be ashamed to look Steve in the eye right now. Both play calling and play execution were downright atrocious at times.

I second all of these sentiments. Perfect summation.

[Inqui]

Could be possible. Considering the level of revenue sharing going on, and that ticket sales is just the third biggest revenue stream for each franchise, it would certainly be feasible for a single season. Not to mention the fact that most teams sell out and still have thousands of empty seats in the stadium.

 

Not sustainable long-term though. 

Doesn't hurt when they can hold cities hostage and get free stadiums and the like from taxpayer money.

[52N19]

the purpose off the thread was to show appreciation for Steve. people have short memories. two words, the [profanity deleted] "robert irsay".

[cursona pirate]

I wish he owed the Orioles. 

[1/28/01]

I wish he owed the Orioles.

Owed them a favor? Owed them lunch?

[LosT_in_TranSlatioN]

Owed them a favor? Owed them lunch?

Owed them a steak dinner. Maybe that would somehow motivate them.....

I think you, with your clear hatred of baseball could do a better job owning that team.

But discussion wise I like Steve.... Just wish his team wasn't the source of all my medical issues/anxiety.

[cursona pirate]

Owed them a favor? Owed them lunch?

Hey man, I've been typing a paper all day. I'm used to auto correct. 

[1/28/01]

Owed them a steak dinner. Maybe that would somehow motivate them.....

I think you, with your clear hatred of baseball could do a better job owning that team.

But discussion wise I like Steve.... Just wish his team wasn't the source of all my medical issues/anxiety.

True, I'd get us a pennant every other year.

Yes, I hate football and how it makes me feel.

[ludy51]

True, I'd get us a pennant every other year.

Yes, I hate football and how it makes me feel.

I hate that I care so much about the Ravens. When they lose it kills my week

[rmcjacket23]

Doesn't hurt when they can hold cities hostage and get free stadiums and the like from taxpayer money.

Partially true, although its somewhat of a myth in the general public's eyes.

 

A lot of the "city funding" that comes from stadium purchases that allegedly comes from "taxpayer dollars" doesn't really come from that. Its not overly common for cities or states to raise things like sales taxes, property taxes, etc. to raise this money.

 

If you look at how a lot of these stadiums are funding "publicly", it generally comes in the form of stadium "taxes and fees", which are surcharges added to consumers who actually use the stadium, and various other fees that are based on consumer preferences (hotel taxes, etc.).

 

For example, M&T Bank Stadium cost $226M, with 90% of that being "publicly funded". 

 

But what does "publicly funded" mean in that regard? Well, the actual metrics of the public funding are:

 

1. State bonds

2. Portion of State Lottery revenue

3. Stadium authority revenue

4. PSLs (according to the report I'm reading, represents roughly 30%)

 

The bottom three factors there are all based on consumer preferences... if you don't play the lottery, or attend games at the stadium (this represents the majority of the population), chances are practically none of your tax dollars are being used to fund the stadium.