Mike Brown is in for a Rough Off Season

The top criticism of Project Mayhem is that Mike Brown will not change unless Mikey's bottom line is severely affected.  WDR knows this, but there is very little we can do during the season to accomplish this.  You can stop buying beer, merchandise, etc.  This off season will be different due to a number of factors.  NFL labor, national political and economic circumstances combined with the Bengals being horrible are forming a perfect storm that could reek havoc on the Bengals profitability.  Details after the jump.  Before you click, please understand that I am not trying to get into a political debate about economics.  I am trying to paint the broad picture, and there can be debate about many of the specific details I will discuss.  WDR is not the place for that debate. 

First, we need to look at the Mike Brown Bengals in two distinct eras.  Pre Marvin Lewis (1990-2003) and Post Marvin Lewis (2003 - Current).

The pre Marvin Lewis era Bengals were horrible.  You all know that, so I am not going to provide statistics to back up that statement.  However, the economy was good for most of that time period.  The 1990's tech boom led to a huge increase income for much of the middle and upper classes.  Plus the Bengals will still playing at Riverfront where ticket prices and luxury boxes were less expensive.  In other words, during the 1990's while being a Bengals fan from a football standpoint became more and more difficult, it became easier in economic terms for many.

In 2000 Paul Brown Stadium was built and that changed the economic dynamic for the Bengals.  Ticket prices were more expensive, luxury boxes were more plentiful and of much higher quality.  When fans where signing up for PSLs and corporations (or people with the money of a corporation) were purchasing luxury boxes the economy was booming.  People wanted to be at the new stadium and assumed the new stadium would bring the Bengals into the 21st century (or maybe even the 1970s). 

Then 9/11 hit, the .com bubble busted, and things were not good.  The Bengals were also not good, but most people had put up so much money for PSLs, it did not make sense to cancel season tickets.  People who had purchased luxury suites and/or club seats were locked into multi-year deals.  It was impossible (or close) for fans to give up on the Bengals.

In spite of all these factors, things were still bad for Mike Brown.  So bad in fact, that in 2003 he listened to someone, Katie Blackburn and hired someone from outside the organization.  He promised change and actually delivered some.  People came back.  Carson Palmer changed the organization.  The 2005 season came.  The economy recovered especially for corporations and higher income people, the people who spend the most money on the Bengals.  During this whole time period there was labor peace and a strong salary cap.  Things for Mike Brown were good.

Things have changed.  The economy is bad.  It is bad for corporations, wealthy people, poor people and any other type of person you can think of.  Companies are going to have to tighten their belts.  National City, the Bengals Bank sponsor has seen their stock go from over $25 to under $3 in the last year (including being bought by PNC).  Home values have dropped, unemployment is up.  People have to cut their budgets, and with the Bengals being horrible, tickets will be at the top of the list this off season.

Further, political changes will make it harder for Mike Brown to make profit, sell portions of the team to raise money, and even pass the team to his family.  Barack Obama has said he will raise taxes on those who make $250,000 a year.  It may not happen this year, but if/when it does, I can assure you Mike Brown makes $250,000 a year.  Mr. Obama also said he wants to raise the capital gains tax for wealthy people.   Further, the estate tax will most likely make a comeback in 2010 or 2011, which means if Mikey wants to pass the team onto his kids they will have to pay up millions (lots of millions) in taxes.  When Paul Brown died, Mikey and co. fought the IRS for years about these taxes and you can bet they are gearing up for a fight again.  The Rooney's have said they may sell the Steelers team to avoid the estate tax.  Wayne Huizenga has said he wants to sell the Dolphins to avoid the higher capital gains tax.  Mike Brown has some serious economic challenges this off season.

Rumors are rampant that there may be some NFL Labor problems and possibly an un-capped year in 2010.  This would also be bad for Mikey boy.  The easiest way for Mike Brown to continue to profit from the Cincinnati Bengals is actually quite simple.  MAKE THEM GOOD!!!  People are willing to spend money on a winner.  Corporations will value their luxury suites if their employees and clients really want to go.  Mike Brown has been a shrewd businessman and has been able to rake in profits year after year while taking little or no risk.  Those times are over.  Economic and political factors have changed.  Fans are hurting and unless Mike Brown makes some serious changes to how he runs the Bengals, he will finally be hit the only place he has nerves...his wallet.

UPDATE:  Evidence has surfaced the last couple of days which shows that the Bengals, the NFL in general, and even the Red Sox recognize this off season will be hard on teams' bottom line.

Hamilton County owners a luxury suite and through a random drawing lets one county resident have it each month.  Between Aug. 1 and Oct 1, they had 6,700 entries.  Since Oct. 1, only 300 entries.

The NFL has announced they will LOWER 2008 playoff ticket prices by 10%. 

And finally, the Boston Red Sox have annouced they will freeze 2009 ticket prices.  This comes from a team that has raised prices for 14 years of sharp increses and has sold out every game since fans starting jumping on the "Fever Pitch" bandwagon.

If successful organizations like the NFL and the Red Sox are lowering/freezing prices and people are not even willing to enter a drawing for a FREE luxury suite, imagine what fans will do when their season ticket renewal letter comes around?  Imagine what corporate marking/CFOs will do when that suite lease comes up for renewal?  Times have changed Mikey, you NEED to put a winning product on the field to make money.  For 18 years, you have proved you are incapable of doing that.  No big deal, I bet I could not make a winning professional football team outside of Madden, but I am not trying to either.  Give up control, hire a GM, hire some scouts, do what other winning organizations do.  It is the only way to protect your bottom line.

Comments

[SOFTBLUSHcom]

That's awesome!

[WC]

Again, the central point of anything having to do with the wishing for the exit of one Mikey Boy Brown... ...is missed.
The Revenue Sharing in the NFL makes MBB profitable if NOT ONE SINGLE FAN buys a ticket! That's right, you heard it here... ...If MBB has no butts in the stands, then he doesn't have to pay for the materials required to service said butts. That means his costs are cut commensurately with the amount of people who are in the stands. Mikey Boy doesn't have to worry about a recession -- specific or not. He can (and will) survive on his own.

I hate to say it but the big (and only) chance that this city had to get rid of the scourge that is Mikey Boy Brown was when he threatened to leave in order to force the people in this area to pass a sales tax addendum to pay for a new stadium. Now you have to lice with it. Essentially, quit yer bitchin'!

[film izle]

I hate to say it but the big (and only) chance that this city had to get rid of the scourge that is Mikey Boy Brown was when he threatened to leave in order to force the people in this area to pass a sales tax addendum to pay for a new stadium. Now you have to lice with it. Essentially, quit yer bitchin'!