October 13, 2012
Heather McNally Milko
The sports organization I chose is the San Francisco 49ers of the
National Football League. In this paper I will talk about How San
Francisco handles their budget, and how it will affect future season
financials. The size of the market the 49ers play in, and the adjustments
they must make to operate within their budget.
Each NFL team is issued 120.6 million dollar salary budget every
year. If the total budget is not used any team can carry the reining
balance over to the next season. If needed a team can use 1.5 million
dollars from the next season that will be deducted if used. The San
Francisco ...view middle of the document...
If the San Francisco
49ers needed to pick a player up, and needed to free up salary space
they could restructure another player’s contract or just release a player.
Unlike the other 3 major sports in the U.S. (NHL, MLB, NBA) the NFL
does not have guaranteed contracts. The only money that is guaranteed
is the signing bonus, and a team can release a player at anytime
without having to pay the remainder of the contract from the released
The San Francisco 49ers are ranked sixth in the NFL in market
size, so I would say that is large. The 49ers existing in a large market
use almost all of their120.6 million dollar budget. Putting the best
product on the field, and winning will make the team the most profit.
Winning will help the team sell more tickets, merchandise, and keep the
whole community of fans buzzing. The San Francisco 49ers are building
a new stadium in Santa Clara, California and the construction will be
done in 2015.
The cost of the stadium that also has a stadium mall that will be
open all year around will cost $987 million dollars. This will bring in
6,500 new jobs, and about 3,000 new seasonal jobs. By putting a great
product on the field the San Francisco 49ers were able to win a vote to
have tax payers pay $330 million dollars of the $987 million.