Comparison of player costs NFL to CFL

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globespanner
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Comparison of player costs NFL to CFL

Can some one enlighten me on why CFL player costs are only 17% of gross revenue while NFL are 45%+ . I understand revenue is much higher in the NFL.. But that should mean player salaries should be a lower percentage of gross.

I’d like to see pie chart on team average revenue and expenses by category before and after 2020.
I get that travel expenses for a Team in Canada . A lot of long trips with 75 or more personnel. This will be will be very high compared even to the NFL.

I especially would like to see what the teams were contributing to league office overhead as a % of revenue. Did I hear right that their were 100 people employed at the CFL head office and a lot were let go recently. For a nine team league 100 person head office is crazy. Did that include referees maybe.?

Another area I would like to see is team office overhead as a percentage of revenue.
They cut back on coaches this year. You wonder do the cuts equal the same % as a the players.

The CFL has never been very transparent. The fact that Ambrosie was not really prepared to share these numbers with the feds initially, when when they were begging for $50 Mill This is both laughable and very telling

Welcome any comments that might shed light on this.


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B.C.FAN
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Re: Comparison of player costs NFL to CFL

The CFLPA has said that player costs amount to 30% of CFL revenues. The league has agreed to open up its books to players more regularly, which is a positive development. Annual league revenue was believed to be about $210 million before the pandemic, which would equate to about $23 million per team. The revenue across the league varies widely, though. Here's a breakdown of known figures by Dan Barnes of Postmedia:
The Saskatchewan Roughriders punch well above their weight class, with a league-leading $40 million in revenues in their 2019 financial statement. Winnipeg reported $36 million, Edmonton $23 million. That leaves the remaining six privately owned teams to combine for about $110 million, with the laggards in Toronto, Montreal and B.C.
I'd love to see more transparency. One of the problems of league-wide comparisons is the lack of standardized accounting practices. I haven't looked at the financial statements of the publicly owned teams for a few years but some teams regularly reported net concession and merchandising income as revenue whereas Saskatchewan, for example, reported the wholesale cost of concession food and merchandise as expenses and the gross sales income as revenue, thereby making their total revenue and expenses seem much higher. That makes comparisons difficult, especially when calculating the players' share of total team expenses.

The league has taken a number of steps to cut expenses for 2021. It cut the football football operations cap by 20% to $2 million, which has prompted teams to eliminate coaching and scouting positions and, in the Lions' case, to not hire a full-time GM. According to Randy Ambrosie, teams have been working to streamline non-football expenses. I'd expect them to follow the example of many businesses and save money by centralizing some business operations rather than having nine offices across the country doing the same back-office functions.

As mentioned in another thread, the league has reportedly encouraged teams to keep 2021 player costs closer to the salary-cap floor of $4.75 million rather than the cap of $5.35 million.

Here are a couple of good overviews of the league's financial situation and business plans from Barnes:
Players not willing to take the fall for CFL's financial woes

Revenue sharing will be on the table when CFL looks to change business model


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Re: Comparison of player costs NFL to CFL

I've regularly pulled the annual reports of the 3 community clubs as they do shed a lot of light on what might be happening with the private teams. Still it's not easy to make any apples to apples comparisons due to the different ways things are reported and the different structures teams have when it comes to leases, rents, concessions, merchandise etc. It's more like trying to compare an apple to an orange to a banana to a grapefruit. As BCF says the Riders typically listed gross concession and merchandise revenues as revenue while listing the related expenses as expenses which makes for an impressive revenue figure. Meantime Edmonton and Winnipeg might simply list their net profit of those things as revenue. Of note when it comes to merch the Riders used to operate I think 4 retail outlets, 2 in Regina and 2 in Toontown. Given that their profit margins were quite slim. They downsized to 1 location in Saskatoon early this year prior to Covid. Gist of the Rider statements in the last few years is that without the net profits from concessions and merch the would struggle to break even.


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Re: Comparison of player costs NFL to CFL

To answer the question about CFL employees I came across something earlier today that indicated the league had 155 employees. I suspect that would include the zebras as they are employed by the league, not the teams despite accusations by Rider fans. Same article indicated the NHL has 1000 employees, NBA 3200 and NFL 3750. MLS I think was 580.

As for where the CFL gets their operating revenues it's not a case of teams sending them money. They would get their operational funds from getting a cut of things like the TV contracts, corporate sponsorships, CFL licensing agreements etc. They in turn disburse payments to the 9 teams for their shares. This can be seen in the statements of the 3 community teams who each show a revenue entry in their financial statements to the effect of CFL Contributions with a number in the $4.5M range.


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Re: Comparison of player costs NFL to CFL

Stumbled onto the University of Guelph's football ops team and was surprised to see so many involved. They would have to cut to meet the new CFL rules.

I was checking to see if Mike O'Shea Jr was draft eligible and was surprised to see him listed as a receiver. Would have expected a linebacker but could be he takes after his mom. 2 more years of eligibility listed.

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cms22
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Re: Comparison of player costs NFL to CFL

interesting subject and I saw an inflammatory article in last few days saying CFL players are getting screwed.

certainly, a lot of moving parts.............

not sure a small league should have player costs remotely close to a big league as % of revenue................. basic non-discretionary costs much higher as % of revenue for smaller revenue flow. like airfare and hotel rooms.

CFL definitely has a perception issue....... should have handled a lot of stuff differently before and during COVID.

as to getting to a proper % of revenue number, there are at least 3 streams to look at. tickets (incl. ancillary revenues like food/drinks), media and merchanding........ merchandising and media I would think have fewer direct costs against them. tickets have more (like rent of building).. so another reason for % of revenue to not be as high for CFL.

I think the really inflammatory article I saw overlooked the fact that CFL franchises are not overly profitable, nor overly valuable................. if you own a $1.5B franchise, then you might take a pretty significant short-term loss to protect that asset... if you have a (questionable value) $10MM asset, why lose $2-3MM to protect it? . the article suggested Bob Young, MLSE and Calgary Sports (I'd never heard of it myself) are rich, but I don't see that as highly relevant.


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Re: Comparison of player costs NFL to CFL

cms22 wrote: Mon Jan 25, 2021 3:47 pm Calgary Sports (I'd never heard of it myself) are rich, but I don't see that as highly relevant.
Calgary Sports & Entertainment was spun out of the Calgary Flames Limited Partnership in 2012 when they took over controlling interest in the Stampeders. Under that umbrella now are Calgary Flames (NHL), Calgary Stampeders (CFL), Calgary Roughnecks (NLL), Calgary Hitmen (WHL) and Stockton Heat (Flames AHL farm team). They also manage the Scotiabank Saddledome on behalf of the City of Calgary. They're kind of a poor man's version of MLSE and close to par with Canuck Sports & Entertainment. They have more teams under their umbrella than does Aquilini but Aquilini owns his own arena.


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cms22
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Re: Comparison of player costs NFL to CFL

thank you... i figured as much on Calgary Sports.


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