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Broncos value rank slips in Forbes survey

Team worth tops $1 billion, but it still loses ground

By James Paton, Rocky Mountain News (Contact)

Published September 10, 2008 at 11 p.m.

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Joe Ellis, the Broncos' chief operating officer, said team's costs are rising faster than revenues.

Joe Ellis, the Broncos' chief operating officer, said team's costs are rising faster than revenues.

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The Denver Broncos dropped off the top 10 in the rankings of most valuable National Football League teams as luxurious new stadiums gave rivals a lift.

The value of the Broncos crossed the $1 billion level for the first time this season, after a gain of 7 percent, but other teams grew at a faster pace, pushing Denver to No. 11 from No. 6., Forbes estimated.

The Indianapolis Colts jumped to No. 8 from No. 21, largely because of the new $720 million Lucas Oil Stadium. The New York Giants and the New York Jets had big gains, too, as they prepare to move into new digs.

The annual Forbes report calculated that the average NFL team value is now $1 billion.

New stadiums translate into additional revenue from premium seating, sponsorships and events like weddings and concerts.

"Stadiums are the great differentiator," according to the magazine's Kurt Badenhausen.

Each team gets an equal slice of national television fees, and a revenue-sharing plan sends dollars from the top teams, including the Broncos, to the bottom ones.

But clubs also generate revenue locally that they do not share, and those sums usually rise faster for teams in larger markets and in newer stadiums.

The gap is widening, and smaller market clubs find it hard to keep up with salary cap increases. The players now get about 60 percent of league revenue. Player costs, including salaries and benefits, have climbed to more than $135 million for each team.

As expenses rise "it will be really tough to compete for some teams," Badenhausen said. But the Broncos, with $226 million in revenue in the latest year and a spot in the richer half of the NFL, are not one of the teams we should be worried about," he said.

Joe Ellis, the Broncos' chief operating officer, said owner Pat Bowlen is "comfortable with where the team is right now."

Still, he said, the team's "costs are increasing at a more rapid rate than revenues, and that is a concern. You have to make good judgments and good decisions and adjust accordingly, and that's what we are doing."

The Broncos this season introduced a "super suite for upscale patrons," and they try to use "every inch of space" to make money, hosting a wide variety of events, according to Ellis.

Invesco Field at Mile High, opened in 2001, has given the Broncos revenue opportunities other teams lack.

The team can thank taxpayers.

Denver-area voters approved a penny-per-$10 sales tax in 1998 to pay for 75 percent of the roughly $400 million construction project. Invesco agreed to pay $120 million over 20 years for naming rights, with half the sum going to the Broncos and the rest being used to ease the taxpayer burden.

What they're worth

The top 11 NFL franchises and their current value:

1. Dallas Cowboys $1.61 billion

2. Washington Redskins $1.54 billion

3. New England Patriots $1.32 billion

4. New York Giants $1.18 billion

5. New York Jets $1.17 billion

6. Houston Texans $1.13 billion

7. Philadelphia Eagles $1.12 billion

8. Indianapolis Colts $1.08 billion

9. Chicago Bears $1.06 billion

10. Baltimore Ravens $1.06 billion

11. Denver Broncos $1.06 billion

Comments

  • September 11, 2008

    5:38 a.m.

    Suggest removal

    SheikYurBooty writes:

    Is there anything we can do to help??? Maybe we could give Bowlen a cut of all RTD fares? Or parking - why do others who have done NOTHING get to keep all the parking $$ - people are coming to see the Broncos, not just for the fun of parking in that dump of an area on Federal.

  • September 11, 2008

    6:38 a.m.

    Suggest removal

    DeimosJB writes:

    Bowlen is doing just fine, and he'll be doing even better when the league renegotiates the CBA with the players.

  • September 11, 2008

    7:33 a.m.

    Suggest removal

    303Geno writes:

    Holy Crap, Since when did Liberace come out with a clothing line? That shirt just screams, " I'm in finance". If my CPA dressed like that, I'd move my money into scratcher tickets.

    Joe, next time they do an article about our beloved Bronco management, have Stevie Wonder help pick out a shirt and tie for you.

    I feel sorry for all the folks who are trying to kick the acid addiction. You just sent dozens of people into rehab.

    But seriously, if Al Davis paid Shanny what he still owes him, would we move up to the top 6 again?

  • September 11, 2008

    11:37 a.m.

    Suggest removal

    Thewiseman writes:

    It's a ripoff and we are the ones that had to pay.

  • September 11, 2008

    1:25 p.m.

    Suggest removal

    Biff writes:

    Thewiseman....if you think its a ripoff, then sit at home and watch it on your old 32 inch TV.

  • September 11, 2008

    4:15 p.m.

    Suggest removal

    4gColoNative writes:

    Maybe this article will wake some people up to the fact that they (fans) are merely customers for a product.
    Even those who aren't customers (aren't fans) have no choice but to pay (taxes) for the product.

    Entertainment is king. Rome slowly burns.

    And I still watch to see if Cutler will pan out.