2008 Denver Broncos finances

by Steve O' on Nov 26, 2008 4:19 PM MST Comment 3 comments

This is from Forbes.com

NFL Team Valuations

#11 Denver Broncos

09.10.08, 6:00 PM ET

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www.denverbroncos.com

Team Value 1 $1.1 bil

Patrick Bowlen

Denver Broncos
are owned by Patrick Bowlen,
who bought them in 1984
for $78 mil.

Player-costs-to-win ratio 8 78
Coach Mike Shanahan

Sport: Portion of franchise's value attributable to revenue shared among all teams. Market: Portion of franchise's value attributable to its city and market size. Stadium: Portion of franchise's value attributable to its stadium. Brand Management: Portion of franchise's value attributable to the management of its brand.
The skinny
Last year marked only the second losing season for coach Mike Shanahan in his 13 years patrolling the Denver sideline. During the off-season quarterback Jay Cutler announced that he has diabetes which hindered his 2007 season. Football-crazed Denver has made every Broncos game a sell-out since 1970 and the team has one of the elite stadiums in the NFL. The tickets aren't cheap either. The team's 8,000 club seats can cost as much as $4,000 for a season ticket.

Major corporate sponsors are Anheuser-Busch (nyse: BUD), US Bancorp (nyse: USB), Coca-Cola (nyse: KO), Comcast (nasdaq: CMCSA). Naming rights sponsor is Invesco Funds.

Historical Snapshot



	Dates are when valuations were published; figures for most recently completed season.


1-Yr Value Chg.	7%
Ann. Value Chg. 2	11%
Debt/Value 3	14%
Revenue 4	$226 mil
Operating Income 5	$18.8 mil
Player Expenses 6	$132 mil
Gate Receipts 7	$59 mil

Facility Information

Invesco Field at Mile High
Owner: Metropolitan Football Stadium District
Year Opened: 2001
Capacity: 76,125
Cost To Build: $401 mil
Concessionaire: Centerplate
Average Ticket Price: $71

Revenue and operating income are for 2007 season and net of revenue sharing and stadium debt service.
1Value of team based on current stadium deal (unless new stadium is pending) without deduction for debt (other than stadium debt).
2Current team value compared with latest transaction price.
3Includes stadium debt.
4Net of stadium revenues used for debt payments.
5Earnings before interest, taxes, depreciation and amortization.
6Includes benefits and bonuses.
7Includes club seats.
8Compares the number of wins per player payroll relative to the rest of the NFL. Postseason wins count twice as much as regular season wins. A score of 120 means that the team achieved 20% more victories per dollar of payroll compared with the league average.
NA: Not applicable.
Team Logos Courtesy NFL.

Fans at MRH have been discussing ticket prices and other costs at the venue known as Invesco Field at Mile High. I thought I would find some figures for clarity.

Some things to point out.

The average ticket is $71 with total gate receipts for 2007, including club seats, valued at $59 million.
Almost 60% of the Broncos revenue is generated just from being in the NFL and revenue sharing.
Invesco generates 15% of the Broncos earnings.
Every Bronco game has sold out since 1970, nice job Denver!!
Pat Bowlen purchased the Broncos in 1984 for $78 million and it is currently worth $1.1 billion. Nice 24 years of work Mr. Bowlen!
The Denver market (you the fans), valued at 18% is more valuable to the Broncos than Invesco at 15%.
One thing I didn't see but would like to know is, What do you they spend on medical costs? I assume all medical issues are handled in house but the MRI machines and X Ray machines and paid medical staff, trainers, of course Greek, what does it cost?

I will let you all decide on whether there is wiggle room on ticket prices. I copied and pasted this screen from Forbes, if I left out a disclaimer or an explanation I do apologize.

Happy Thanksgiving Bronco Nation!!

This is a Fan-Created Comment on MileHighReport.com. The opinion here is not necessarily shared by the editorial staff of MHR

2 recs | Comment 3 comments

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Comments

I can't really say much about ticket prices

since I don’t live in Denver, however the prices down here in SD aren’t that different. I mean I usually sit in the upper deck because I can get a better view of the whole game from there. The prices there are about $75-$80…..not bad.

"It doesn't dissipate" ~ Mike Shanahan

Cutler's 4th qtr/OT game winning drives: 6

by weazel on Nov 26, 2008 5:53 PM MST reply actions 0 recs

I have gone to a game a year for the last three years.

When they come to Florida I always go, if not I rarely go. When I do go, I don’t want to have to fly out and have crappy seats so I have to get good ones which are about $350 each, then flight, lodging, food, drink and Broncos gear, on top of that it is really really cold up there, for me in Dec in 07 at the Chiefs Broncos game, I was frozen solid. I bought 3 big Bronco blankets and went through like 15 cups of Hot cocoa with Peppermint schnapps in it.

That trip alone cost me about two thousand but that won’t ever happen again for a while and the memories of being there are more valuable to me than money!

Win or lose, it's always it a great day to be a Bronco fan!

by Steve O' on Nov 26, 2008 6:08 PM MST reply actions 0 recs

so you are in the sunny south

I’m a little north in TN but lived in denver for six years beginning in 80. I’ve never even been to a game but i can say that it doesn’t matter to me at all what the cost is. I like the tellevised warm version, and so could care less. All of the debate comes down to $. The NFL is going to make sure that the teams make money, however nessessary.

But, they do it in part by making certain that fans, world wide, are able to see the games, be a part of the games, and purchase from the local mall, thier favorite jersy! Look at the stats above. Lots of money in selling the Broncos name, along with the NFL! I could handle 79 mill per year and thats the 7% of the rev’s!

by metalman5050 on Nov 26, 2008 7:27 PM MST up reply actions 0 recs