Breath of Fresh Air
Posted by John Vrooman on Thursday, November 17, 2016 in National Football League.
Interview with Florida Times-Union
Jaguars Financial Charts. (XL)
I’m doing a story looking at the five years of ownership of the Jaguars by Shad Khan from a business standpoint – how well he has operated the team as a business, how well he has done with a) building equity in the team, and b) increasing local revenue year over year.
I’d like to get your insight on how Mr. Khan has fared with the team, what his strengths and weaknesses are/have been, and how you might grade him on his business performance.
According to Forbes, in the four years since Shad Khan purchased the Jaguars early in 2012, the Jags have increased in value by 92 percent compared to the average NFL franchise of 77 percent. This follows a steady decline in value since 2000.
Much of the decline is related to the long-term chronic lack of performance by the Jags on the field. Value in the NFL is derived from a long-term tradition of winning and the converse is also true for losing.
The Jags have increased in value by a compound rate of 8.4 percent since their inception in 1995 compared to the Average NFL franchise growth of 10.6 percent. Both rates more than double the rate of growth in the S&P 500 index.
Since Shad Khan bought the club in 2012 the Jags have risen from dead last in NFL value of $770 million to 25th with a Forbes value of $1.95 billion in 2016.
By this most objective measure,Shad Khan appears to be reversing the downward trend at the bottom line, but true above average brand value in the NFL is only derived from steady long term performance between the lines.
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