QUOTE(SaberCatFanatic @ Nov 4 2007, 10:10 AM)

If your team ownership are "smart" business men then they have an economic contigency to cover the losses of a possible payout if the playoffs are not reached. I am still banking on an insurance policy and a huge increase in advertising and television revenue. It does not make sense for them tto do a payout unless they are covered.....assuming they are smart business men, if they aren't and do not have a contigency plan, then as a Ratts fan I would be really worried because they are putting the team in possible economic jeporady.
SaberCatFanatic
SCF -
At this point, I doubt that the Rattlers could even get a policy to cover this guarantee. There are too many variables. The team hasn't even been assembled yet. The coaching staff isn't complete. How does an underwriter rate the risk and come up with a premium? If they could get a policy, it would be very, very expensive and you don't recover the premium if you make the playoffs.
There was an article in the AZ Republic, however, that said the net worth of Brett Bouchy's group is $100 million. I don't know if that includes Bobby Hernreich's 30% or Robert Sarver's 10% (yes, he's still in for 10%).
Brett is looking to increase the Season Ticket number from 5000 to 10,000 or more. The average price of a ticket, according to the AZ Republic, is $29.00. I'm not so sure where that comes from but if we use that number and they do sell 10,000 season tickets, we are looking at $2.9 million in season ticket revenue. So the stake for the partners is only $2.9 million out of $100 million or 2.9% of the amount they have committed to the Rattlers.
If this draws fans the way they hope, the payoff for risking only 2.9% is fantastic!
Let's not forget one thing. The goal here is to get people in the seats so they can see what a great game this is and they will come back in 2009 and beyond. The guarantee is for one year, but the goal is long term.
Also, along with making this guarantee, management is doing all sorts of other things to be sure that the Rattlers will be well on their way back to the elite status they once enjoyed in the AFL.
But I guess you don't want to hear about that. By the way, has Grieb re-signed yet? Heh, heh, heh.
I think we have a very smart group of businessmen running this franchise. And I bet they know how to spell "contingency", too.