on3m@n@rmy said:
That number is baffling to me. $250m to make payroll? When players entire annual salary is roughly $80k per year? The math doesn't add up. The entire combined salary of all AAF staff, players, coaches, more, can't be over about $50m per week. I'm not sure what other ancillary costs there are, but they can't be $200m, that seems impossible. Reading between the lines, my gut tells me that Tom Dundon, who owns the Hurricanes (NHL team) put up the money as an investment into the league, as they also named him the new chairman of the league. Yes, the league was probably at a financial bind at this point, but no way was it $250m deep, that just doesn't add up.
This begs the question, how long will that $250m last? Five weeks? To season's end?
Recall when the AAF was first announced, my initial concern was finances. I will have to find my old post, but I essentially said what killed other leagues, the XFL, WFL, even USFL (though the WFL and USFL were not league owned) was a lack of cash to last the long haul. The only way one of these minor league football teams is going to last is if they are prepared to come out of season one with a big loss-leader, tens of millions of dollars in the red - the inability to do this, and adversity to risk, is exactly what lead to a near panic run and killed the XFL. But this "long run" mentality must continue. The league must accept loss leaders perhaps in seasons 2, and 3 as well, and they must be both dynamic and aggressive in order to stem that tide and swing it. If they can do that, they can likely stick around a while, AFL style perhaps.
I'm very curious what happens next year IF the AAF survives, and the XFL (more flush with money...probably) returns. The two leagues could in theory merge, or one swallow the other in 2021 or so. Then there's the Freedom League, which seems even smaller than the AAF, but a similar model.
What may ultimately be needed is the dust to settle from these leagues, and then the NFL to make an investment in the league, somewhat financially, but really to "own" the league, promote it, let it piggyback on the NFL in a sense.