Wilson sounds alarm on Bills' future
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Owner pleads for help to change new NFL deal on revenue sharing that threatens team's viability.
By GENE WARNER
News Staff Reporter
4/8/2006
Buffalo Bills owner Ralph C. Wilson Jr. isn't asking for a penny of government help from New York State or Erie County.
He also has no interest in having a new stadium built for the Bills. And he has no plans to sell or move the Bills in his lifetime.
But Wilson pleaded for help Friday in changing how National Football League teams will share their local revenue. Without such a change, he sounded a huge warning about the team's long-term viability in Buffalo.
"As I sit here today, this is not a matter of making money for the Buffalo Bills," he told reporters. "It's a matter of survival. We just want to survive. And I think a lot of other clubs are in the same fix."
Wilson, in a 38-minute solo news conference, issued a public plea.
He wants lobbying help - from everyone from Gov. George E. Pataki on down - in creating a new NFL formula for sharing local revenue that would help the Bills and other smaller-market teams survive.
Wilson, one of two NFL owners to vote against the new Collective Bargaining Agreement hammered out last month, is keenly interested in how league owners negotiate the fine details of sharing local revenue. Under that local revenue-sharing agreement, large-market teams with higher ticket, suite and sponsorship revenue have to share some of that extra revenue with smaller-market teams.
But the "qualifiers" that have been proposed for that revenue-sharing plan could doom the Bills, club officials suggested after Friday's news conference. If these proposed qualifiers all go through, we would get little or no [local] revenue sharing," team treasurer Jeffrey C. Littmann said. "Then it would be very difficult for us to spend to the cap and be economically viable. That's why we're asking the public sector to be aware of this and convey their concerns."
Eight NFL owners are expected to be named soon to a committee that will work out the exact language and numbers of those qualifiers. It's believed that Wilson's public plea is an attempt to make sure smaller-market teams such as the Bills are well-represented on that committee.
After Wilson dies
One of those proposed qualifiers could be of special importance to the Bills' long-term chances of remaining in Buffalo. "If Mr. Wilson passes away and this club is sold, whoever buys it won't be subject to any revenue-sharing," one Bills official said.
In the past, Wilson has stated repeatedly that he has no plans to leave the team to family members; instead, he would sell the team. But in Friday's question-and-answer session, Wilson seemed to move away from that position and open the door to other possibilities. "I don't know about my family," Wilson said. "I haven't decided on that." Observers say inheritance taxes still would make it impossible for Wilson to leave the team to his three daughters. Wilson, though, never has commented on the possibility of leaving it to his wife, Mary.
Another proposed qualifier that could hurt the Bills would penalize teams whose annual ticket revenue falls short of 80 percent of the league average. Although the Bills sold out all eight games last season, their relatively low ticket prices would put them under that 80 percent threshold, team officials said Friday.
Another proposal, which also would hinder the Bills, would count the $6.6 million the team receives from the county and state governments as revenue, thus cutting into the amount the Bills would receive under the league revenue sharing.
So what can Bills fans and Western New York do about this?
"Today we appeal to the customer . . . Buffalo Bills fans," Erie County Executive Joel A. Giambra said at a news conference. "We need your help right now. We need to convince the NFL these rules are going to hurt us here.
"The fans are the people that allow the owners to make money," added Giambra, who met with Wilson earlier in the day. "The small-market fans have to speak and shout louder. I know if we do nothing . . . then football in Buffalo is going to be extinct." Ted Fay, a sports management professor at Cortland State College, explained that the new labor deal drives up costs to the Bills by expanding the pool of revenue used to calculate the salary cap. As teams bring in more money through sponsorships and sales of expensive suites at costly new stadiums, the salary cap rises for all teams, including the Bills.
"There's cap creep, if you will," Fay said. "They're forced to carry higher costs."
Salary cap creep
Littmann, the Bills treasurer, provided an example. If a team received $20 million a year for a sponsorship, roughly 60 percent of that figure, or $12 million, would go into players' salaries and raise the salary cap. That $12 million, divided by the 32 teams, would cost each team $375,000.
Wilson made it clear he doesn't appreciate the way the new Collective Bargaining Agreement was passed in such a rush, without the proper time to study and evaluate the numbers.
"I'm disappointed that this extension of the bargaining agreement was proposed quickly and went through," he said. "The high-revenue clubs have a lot of influence with the commissioner."
Wilson didn't mince words, when asked how he feels about some of the younger owners in huge markets who have replaced many of the old-guard owners.
"They, to me, and it's just my opinion, don't have the same values about the league that the old guard did," he told reporters. "I just don't think they're as interested in the game as the old owners. I really don't. It's just a feeling I have. When we get to the meetings, we don't talk football; we just talk money."
Wilson also was blunt in scotching any rumors that his meeting earlier this week with Pataki was an attempt to lobby for a new stadium.
"We could build a $600 million stadium across the street, and it wouldn't make any difference, because Western New York - you all know it - is a poor area," he said. "We have no pricing power, and we wouldn't have [any more] pricing power in a new stadium."
Wilson drew the biggest laugh when he recounted what he told Pataki earlier this week.
"When I went in to see Gov. Pataki, I wanted to put him at ease. I said, "Governor, just quiet down a little. I'm not going to ask you for any money.' "
Pataki's response: He let out a huge sigh of relief.
Before taking questions, Wilson vowed to do all he could to keep the Bills in Buffalo.