Behind the Steel Curtain: An SB Nation Community

Navigation: Jump to content areas:



Around SBN: Race to the BCS: rankings, in-game scores & blogs Bar-right-arrows



Effect of Ownership outcome on looming CBA deadline

One thing that hit me today while reading through the various media articles about the ongoing restructuring in the Steelers ownership:  How will the change/restructuring in ownership affect the teams ability to stay competitive a) if football becomes uncapped indefinitely or b) football remains capped, but the caps keep increasing, like they have in previous years.

In Tribune-Review I was reading about how the Steelers, when they want to give a player (like Ben) a big signing bonus, it basically comes straight out of the owners wallets, and thus, cuts into the profitability of the team.  For the past decade the team has focused on maintaining a winning product, at the cost of their profit margins.  Us fans should be so lucky, the Rooney's have a "cheap" reputation, but the hard facts and income statements support that they have in fact sacrificed their own potential gains to put a winning product on display.  Now, moving forward, it has become more and more difficult for NFL franchises to maintain profitable (hard to believe I know) with increasing player costs and overhead costs.  The Rooney's have already been squeezing their pockets to keep a winning product on the field, so I want to examine the two most likely scenarios, 1) Rooney's (led by Dan & Art II) maintain majority control, and 2) Druckenmiller gains majority control, with Dan & Art II left in charge of day to day operations

In Scenario 1, most likely, Dan & Art II are going to find outside investors to back them, but at the same time, they will need to incur some amount of debt, and spend some of their own money.  In two years, if the league goes uncapped, this will severely hamper the Steelers, as management will be feeling the squeeze to keep costs under control, and the NFL-mandated debt limit COULD (not necessarily, but possibly) put a damper on the Steelers remaining competitive.  So, if Dan & Art II retain majority share, we all better pray that a salary cap remains in place.  I would also imagine though, that any plan that has Dan & Art II as majority owner, addresses future cash issues, as the Rooney's are just too smart to not see that.

In Scenario 2, this is basically the one positive of having Druckenmiller become majority owner.  While I definitely want to keep the Rooney's as majority owners, you have to also see the positives of a multi-billionaire in control.  For one, in an uncapped league, Druckenmiller's large cash reserves, combined with (presumably) Dan & Art II's personnel decisions, the Steelers might even be a more dominant powerhouse than they already have been for the past 30 years.  Even with a new cap in place, it would increase the ability of the Steelers to add "cash over cap" signing bonuses to contracts (not that these contracts are good ones, as they usually are overpaying players) but it would help us retain players who we might not want to lose --like Faneca, who even though he was way overpriced, if a year earlier we had just offered him a top 10 deal, he would've stayed, instead of leaving for #1 paid guard in the league money a year later-- in the long run.

In conclusion, it's easy to see how any ownership outcome with Dan maintaining majority share is most likely going to put a pinch on his own families finances, and thus, POSSIBLY the competitiveness of the Steelers.  Again, I must stress it's more likely that Dan comes up with a plan that will allow the Steelers to maintain their winning ways, as THAT is the bedrock of the Steelers.  However, IF he has to choose between keeping the team, and keeping a winning team, what will he do?  We all know and love the Rooney's and know they want badly to do the right thing, but there are SO many factors at play here, it's murky to predict what will happen.  That said, I'm pretty confident no matter what, the future of the franchise is going to be stable, at worst.

2 recs | Comment 15 comments

Story-email Email Printer Print

Comments

Display:

Interesting take

I definitely agree that if the Rooney’s have to start spending buck for buck with Jerry Jones or Daniel Snyder, they’ll be in trouble.

Another way to look at it though is that if free agency is 6 years into a career, it could actually help teams that draft well, like the Steelers. If you look at it that way and take into account that most players would then be 28 or 29 years old by the time they were free agents, it’s conceivable that they could be even better than they have been in the past 15 years. The Steelers rarely sign free agents who are close to thirty and it would allow them to retain guys like Plax, Randle El and Chris Hope.

by cgolden on Jul 17, 2008 3:04 PM EDT   0 recs

excellent point

i kinda threw this article together, tried to think of most the ramifications but you raise an excellent point. at the same time, there is a possibility rookie contracts go WAY up, so while we will draft better than everyone else, we’ll also have to pay them more. especially since agents will factor in “hey, the Steelers drafted you, so you must be a lock” into contract discussions.

by TheMostViolentTeam on Jul 17, 2008 3:07 PM EDT to parent up   0 recs

ah I didn't think about that part

Rookie contracts might be even higher than they are now since they’d be locked in for six years instead of just three or four. I’m really starting to hate the idea of this system.

by cgolden on Jul 17, 2008 3:14 PM EDT to parent up   0 recs

exactly

it’ll become like baseball, where even the savvy owners who don’t want to spend huge dollars, will be FORCED to, if they want to remain competitive. so Druckenmiller could be a huge asset in this case. the key would be to find a combination of savvy and spending big dollars (the Red Sox seem to have done this well in past few years, balancing minor league prospects and big contract players)

by TheMostViolentTeam on Jul 17, 2008 3:24 PM EDT to parent up   0 recs

I don’t know that most rookie salaries would go up that fast. The salaries of top 10 – 15 picks these days are skyrocketing, but once you get out of the top 15, the salaries decline quickly. I would expect similar bidding for those top 15 caliber players, but a similar dropoff for players that are more easily interchangeable.

by WolfpackSteelersFan on Jul 17, 2008 3:58 PM EDT to parent up   0 recs

what about the negotiations?

Everyone has made great points so far, but we could also look at this from another angle: how would a change in Steelers ownership affect the whole CBA negotiation process? Personally, I think that if Dan Rooney is no longer the controlling owner of the Steelers, the negotiations will become more difficult. The big-market owners with deep pockets will probably be fine with going into the uncapped year, but the small-market owners will be against it. He’s so respected by both sides that he can be the voice of reason and help them to find middle ground. I doubt that Druckenmiller or another new owner would be able to command as much respect.

Personally, I think that going to an uncapped system would be detrimental to the league as a whole in the long run, even if Druckenmiller’s money enabled the Steelers to remain competitive. As TMVT noted, it will become like baseball, and that means less competitive balance throughout the NFL, less interesting games, and probably less fan interest—certainly in the smaller markets with owners who can’t compete financially. I think that Dan Rooney realizes that an uncapped system would be detrimental to the league, and would fight hard to make sure it won’t happen. I’m not at all sure that Druckenmiller would be able to see that big long-term picture as easily.

by nycsteeler on Jul 17, 2008 4:45 PM EDT   0 recs

definitely agree

uncapped is bad for the league no matter what. I did also consider what you mention, that without Dan Rooney in that room, it could make a BIG difference. that being said, if he remains in charge even with Druckenmiller as the majority owner, he could still be a big voice. Druckenmiller seems very smart, and not the kind of guy to just throw money at players (like Dan Snyder, although he finally seems to have learned his lesson).

by TheMostViolentTeam on Jul 17, 2008 5:01 PM EDT to parent up   0 recs

I'm torn by all of this.

I bleed for Dan Rooney and all that he has done for the team and league. There are many reasons I am proud to be a Steelers fan, but none higher than claiming Dan Rooney as our owner. Rival fans can argue alot of things about us and against us, but no one can have anything but the utmost of admiration for Dan Rooney. The national respect that he commands is second to none.

That said, the days of NFL franchises being owned and operated by people whose only asset is basically the team itself may be nearing an end. If that is the case and if such is inevitable, then there is no one better than Pittsburgh’s billionaire financial wizard Stanley Druckenmiller, who badly wants the Steelers to win. I wonder if the Rooneys, namely Dan and his son, are capable of seeing that and letting the team go to Druckenmiller with Art II having a lifetime job? I wonder if it is possible for Dan to do what is best for the Steelers even if that means giving them up? That would be the ultimate act of unselfishness.

I also wonder how good Art II is, who would soon take over completely if dan did figure a way to keep control of the team. We really don’t know enough about him. Just because his dad will go down as one of the great all-time successful NFL owners (remember, the Steelers didn’t become successful until Dan grabbed the reigns), that doesn’t mean that Art II would have the same instincts.

by maryrose on Jul 17, 2008 4:56 PM EDT   0 recs

i agree

and was thinking the same thing. this may come down to Dan having to decide….do I love the Steelers so much in that I want to continue to be the majority owner, but at the same time potentially jeopardize their winning ways (for the reasons I outlined) OR does he show that love for them by saying, I’ll keep my 16% with my son Art II, let Druckenmiller take the majority, and ensure the future financial & competitive stability of the team he loves, while possibly still being in charge of operations…..

by TheMostViolentTeam on Jul 17, 2008 5:03 PM EDT to parent up   0 recs

YES!

these are my thoughts as well, which is why this is a distressing topic to me. The team I love is a direct result of the ownership through the years. They have made shrewd, yet moral decisions even when at a major financial disadvantage before Hines Field. In THIS case, I am not a fan of change, although I have worried a little bit about how Art II will do post-Dan.
It does not matter how good Druckenmiller seems, and how much whomever gains control of the Steelers says they will stay out of football decisions; the team will be different. Although change is not always bad. To me, change in Steelers ownership is bad, mmm-kay?

by tkired on Jul 18, 2008 6:12 PM EDT to parent up   0 recs

There seems to be an underlying assumption here.

It sounds like people are assuming that if Druckenmiller obtains a majority ownership, he’d actually use his deep pockets to support the team. Is there any evidence that this is actually true? Though it seems clear he’s a Steelers fan, would he really spend any more than is necessary unless it were actually a good financial investment? He is a freaking investment banker, after all…

by HinesField on Jul 17, 2008 5:06 PM EDT   0 recs

well

we aren’t saying he is going to go Steinbrenner crazy, but I would even argue Jerry Jones spends his money fairly well (definitely better than Dan Snyder or Al Davis), but he is able to put more cash into signing bonuses and things of this nature. In all reality, Druckenmiller doesn’t need to spend anymore than the Rooney’s currently do on the team, as the Steelers have one of the higher payrolls in the league year in and year out. That said, as I pointed out, if we go uncapped, Druckenmiller would be in a better position to keep us competitive than the Rooney’s would, whether or not he spent the money, obviously we don’t know, but he would have more of a choice than the (relatively compared to him) cash-strapped Rooney’s would.

Also check out this from the Post Gazette. Druckenmiller (according to a source) is only interested in a majority share.

by TheMostViolentTeam on Jul 17, 2008 5:13 PM EDT to parent up   0 recs

Yeah

I think the “deep pockets” thing isn’t very relevant. I mean, the Rooney’s have spent right up to the cap every year. If we got rid of the cap, there’s still no more income coming to the Steelers, so Druck isn’t going to spend all his money on his hobby sports team. The advantage of having “deep pockets” is that we can give out large signing bonuses, but we just gave Ben a huge signing bonus anyway, so I don’t know how much even that matters.

I don’t know how much more money large market teams are bringing in than small market ones, but I do know that the majority of the income all NFL teams get are from the TV contracts, which are evenly distributed and roughly cover the player costs as they are right now. If the revenue sharing of the largest source of income continues, the spending disparity between teams can’t be that big. I seriously doubt the Cowboys will be able to outspend the Bills by $200 million and still turn a profit.

by BadMaafala on Jul 17, 2008 5:47 PM EDT to parent up   0 recs

Good points but...

Very good points, however, I don’t think an uncapped season is going to be allowed to happen by either side. Additionally, Druckenmiller or any other prospective buyer/s won’t let that prospect get in the way of their buying the team either. Ownership of the Steelers to these deeper than deep pocket individuals would be like owning a world champion race horse…a triple crown winner. Pride in ownership would only motivate them to maintain and support a winner under any circumstances IMO.

by steelersrock08 on Jul 17, 2008 9:35 PM EDT   0 recs

the only point i have to add...

is directed at golden, and snarky in nature.

since when does dan snyder spend jerry jones-style money??

i know he gave ‘twan like eleventy-seventy million dollars a few years ago, but NOBODY touches jerry, in terms of devil may care money tossing. or yee-haws.

except maybe pacman.

but that was different flying cash.

goodnight.

power

by tyronepower on Jul 19, 2008 3:44 AM EDT   0 recs

Comments For This Post Are Closed


User Tools

Welcome to BTSC, a blog dedicated to the five-time world champion Steelers.

"Thoughtful discussion with a sense of history."

Art Rooney Jr.

"Level-headed thinking." Pittsburgh Post-Gazette

FanPosts

Community blog posts and discussion.

Recommended FanPosts

Small
Imagine For A Second Steelers Fans If....
Small
The Steelers, Big Ben, And A New Sense of Place
Small
My contribution
Stampedeblue_small
Ask BigBlueShoe: Week Ten

Recent FanPosts

Small
Tomlin over Cowher??
Small
Tight Ends
Small
Vote Harrison and Parker!!!
Small
AFC NORTH HEAD COACHES- What a joke!
10717039-full_small
2 STEELERS NOMINATED FOR WEEK 11 NFL HONORS
Solar_eclipse_1__small
That didn't take long Ricardo!
Steelers_ii_small
Mike Pereira said
Girl-tv1_small
AFC Playoff picture
Awesome_small
My Two Cents…

Post_icon New FanPost All FanPosts Carrot-mini


Site Editors

Solar_eclipse_1__small Blitzburgh

Steeler_small maryrose

Editors

G_small cgolden

ad

Site Meter