MVN - Most Valuable Network

Are the Jacksonville Jaguars for sale?

This is the question that brews among NFL insiders and fans alike.  With Los Angeles looming large in the collective brain trust of the National Football League, the list of teams that could potentially wind up in the second largest television market in the country almost certainly has to include the Jacksonville Jaguars. 

But, are the Jacksonville Jaguars for sale?

Wayne Weaver is committed to the city of Jacksonville.  There can be absolutely no doubt about that simple fact.  He and his wife have made their home here since being awarded the franchise, and over the past fifteen years, they have entrenched themselves as fixtures in the community through their prolific philanthropic efforts involving numerous charities and cultural organizations. Wayne and Delores Weaver have embraced life in Jacksonville, and have no intention of leaving the city. 

But, Wayne Weaver is 73 years old.  With the team struggling to sell season tickets in recent years, the strained revenue stream of the young franchise has been a constant focal point used to justify the talk about the team being relocated to Los Angeles.  The team has clearly struggled to keep their financial house in order, streamlining their operations staff and consolidating positions non-essential to the football side of the business. 

They implemented a plan in 2006 that reduced the overall capacity of Jacksonville Municipal Stadium to trim their ticket inventory.  The reason for this was two-fold.

First, by shrinking the stadium by nearly 10,000 seats, the team shrank the magic number of non-premium seats that would count toward the NFL blackout policies. 

It also allowed the team to raise prices to try to get their average ticket costs more in line with the rest of the NFL.  The Jaguars currently have one of the most affordable ticket pricing structures in the NFL.  But, season ticket holders have seen their ticket prices increase by anywhere from 40 to more than 100% depending on where the seats are located over the past three years. 

Weaver and his staff are doing everything that they can to assure the long-term solvency of the team in Jacksonville.  But, this is not a young owner.  While his health appears to be outstanding, there may come a time when that will not be the case.  The rumors have been floated that he would hand control of the team over to his son when that time arrives.  But, there are also rumors indicating that his children have no interest in taking over operation of the team.

The initial purchase price of the Jaguars in 1993 was slightly more than $200 million.  Fifteen years later, the value of the Jacksonville Jaguars is ranged at anywhere between $800 million and slightly more $1 billion.  Weaver’s investment was roughly $160 million, so the return on investment would be significant if the team was sold. 

• Struggles to sell tickets. 
• Difficulty in keeping up with the rapidly growing revenue stream generated by larger market franchises.
• An aging ownership.

Those are certainly flags that would lead anyone to think that the team is potentially on the market.

When the city of Jacksonville was awarded the franchise in November of 1993, one of the motivating factors cited by the league in making the decision was the incredible growth potential for the region, and the football passion that existed at the time.  This combination put the city into a unique position that allowed them to beat out other larger cities such as Baltimore and St. Louis for an expansion franchise. 

Over the next several years, the team found unprecedented success, becoming one of the most successful expansion franchises in the history of the league.  The fans were on board and excited by the newness of the entire NFL experience.  But, as the team began to become more mature, and the struggles started to bubble to the surface, the fans slowly peeled away.  At their low point following the 2002 season, the Jaguars were unable to fill a stadium that was built too large for the market to begin with, and the on-field struggles that the team endured were making that an even harder sell.

As the team transitioned in 2003 under new head coach, Jack Del Rio, they saw their ticket sales begin the slow climb back.  It was still a struggle, but the numbers did steadily increase.  When the team decided to bring the stadium more in line with other stadiums in the league by reducing the number of seats available, they were finally able to put blackouts in their rearview mirror.  However, that only lasted for so long, and the blackouts were back in 2007 despite the fact that the team had improved to the point where there was the potential for a return to the playoffs. 

These issues with blackouts once again brought into focus the notion that the team was in jeopardy in the Jacksonville market, and that if a larger market came calling, that the Jaguars would be open to considering the move.  Wayne Weaver repeatedly denied this, but in the end, league sources remained insistent that there were constant rumors swirling that the team was indeed for sale.

As part of the evolution, the Jaguars continued to see improvement in the percentage of renewals for season tickets.  This was a positive sign that things were moving in the right direction, even though there were still issues with blackouts. 

The city remained a potential hotbed for the franchise despite these struggles.  The growth has not abated.  The economy has struggled, but Jacksonville has managed to be somewhat insulated from that. 

Still, those rumors persist, and it does seem likely that the time is going to come in the not too distant future where the team is going to be under new ownership.  What people seem to believe about this is that any new owner will immediately set into motion relocating the franchise to greener pastures. 

But, is that necessarily the case?  Could the team find new ownership that would be more inclined to continue building what the Weaver’s have been crafting for 15 years?

There have been names bandied about as potential suitors.  One that would seem most appealing to the Jaguar fan base, and to Wayne Weaver in particular, is Eddie DeBartolo. 

The former San Francisco 49′ers owner has been actively seeking an opportunity to get back into the National Football League.  He has the financial wherewithal to make a move if the opening presents itself.  He has long been rumored to be pursuing the Tampa Bay Buccaneers, but the Glazer family has no interest in selling off the team.  So, he has looked elsewhere.  Could he be a potential suitor for Wayne Weaver?

Immediately, when people hear the name, they believe that his ties to the state of California would make it an absolute that he would move the team to Los Angeles.  However, DeBartolo lives in Tampa, and has extensive real estate interests in Jacksonville.  Would it really be a stretch for the marketing genius to think that he could be the guy that would be able to ride in on a white horse, bail Wayne Weaver out by buying the team, and then turn it into a franchise that is as profitable and popular as any of the premiere market teams in the league? 

The cost of doing business in Florida is relatively cheap.  The stadium deal that the Jaguars have currently would be appealing to any potential owner.  The tax structure in the state of Florida when compared to what it would cost to do business in Los Angeles cannot be compared.  Jacksonville, for all of the small market stigma, has a lot of appeal for any person considering the purchase of an NFL franchise.

Wayne Weaver has remained a loyal steward to the city of Jacksonville.  That will not change whether he owns the franchise or not.  If the team is for sale, it would make sense that Weaver would want the new ownership to maintain that commitment to the city, opting to keep the team here and not immediately call in the moving vans. 

The Jacksonville market remains a potentially top shelf market for the NFL.  The person that sees this who can also find a way to take that potential and turn it into a reality is out there.  Rather than abandoning the market for perceived greener pastures, the Jaguars could be on the cusp of taking major strides by staying put. 

Is the team for sale?

There is always a price point that makes the answer to that question a simple yes.  But, it should be about more than just the money side in any deal that transfers controlling interest to a new party, and Wayne Weaver will make sure that this is indeed the case.

In the end, it is about keeping the Jaguars in Jacksonville.  That will happen.

This entry was posted on Wednesday, June 11th, 2008 at 9:39 am and is filed under Jaguars' Journal. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.