A week after NFL Films cut loose nearly 10 percent of its work force, one of the 32 NFL franchises is tightening the belt, too.
Per the Denver Post, the Broncos released eight employees on Wednesday, including director of media relations Paul Kirk and Andrew Mason, the managing editor of the team’s official web site.
“It’s a very, very difficult day when you have to eliminate jobs,” said Broncos’ chief operating officer Joe Ellis. “Especially when loyal, hardworking employees are involved. But our industry is like many others where downsizing and layoffs are required to make the business more effective.”
The moves possibly arise from a cash-flow problem within the franchise. But, clearly, there’s not a profit problem. So why can’t owner Pat Bowlen find a way to take advantage of the fact that he’s in a business that generates plenty of black ink, and that continues to enjoy continuous growth in the value of the operation?
As one league insider suggested, if Bowlen is having short-term money trouble, he should either get a loan (interest rates are down) or he should sell of a slice of the team. A ten-percent chunk should generate $80 million, which could be used to, you know, keep folks employed.
Then again, there’s also a chance that money troubles are being used as a pretext for cleaning out unwanted employees. It’s a fairly common practice – the workers are told that their positions are being eliminated when, in reality, the workers are being eliminated, and then replaced.
Regardless of the reason, it’s unusual to read about these kinds of corporate decisions in an industry that for decades has been doing better and better financially.
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March 19th, 2008 at 10:26 pm
Wonder if these 8 are also “dysfunctional” like Ted Sundquist? Maybe Bowlen should hold Shanahan a bit more accountable for the team’s failures as of late. Or better yet, maybe Bowlen can admit part of his franchise’s problem is him - buck stops at the top? Not when there’s someone else who can be blamed.
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March 19th, 2008 at 11:09 pm
Or maybe it’s the NFL.com/network plying its Evil Trade?
He who controls the Information…
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March 19th, 2008 at 11:28 pm
Money problems, lets see could it be because Bowlen is having to pay out ALL the contracts of ALL the dysfunctional coaches and Mr. Sundquist that poor little mikey does not get along with. Sounds like someone needs a time out.
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March 20th, 2008 at 1:38 am
sorry, as an investment banker I have to tell you that just because the Fed Funds rate is down doesn’t mean that borrowing money isn’t a lot more expensive than it was prior to Fed cuts. If you can FIND somebody that will lend you money.
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March 20th, 2008 at 5:37 am
I don’t know the nuances of the economics of the Denver Broncos. But if indeed the profits are mega overall for the franchise, as is most likely the case, then to lay off eight people is ludicrous and wrong. If there is motivation, or if the Broncos do not like somebody, then just be honest and say: You’re fired. Or, You are not doing the job as well as we expect (then promptly replace).
Using a veil as suggested in the entry is cowardly. Using the money problems excuse is comical from a successful $ organization such as the Denver Broncos. Hell, if you asked John Elway and Shannon Sharpe to pitch in (not that Sharpe would be allowed to as an NFL analyst), I bet they’d help.
Before I even read Florio’s possible suspicion, I figured there is a good chance these are motivational firings. Show me the evidence that there are $ issues. Pat Bowlen should not be negatively impacting the lives of employees unless there is good reason to.
Show me the evidence of the cash flow problem, and then we’ll talk.
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March 20th, 2008 at 5:54 am
seems like this guy has a vendetta against the Broncos and Mike Shanahan.
oh no, they fired the guy who runs the website. damn that Shanahan and his controling ways. look out Mike/Pat, your on the hotseat. if that website goes down you guys will be exposed as a bad coach and a bad owner.
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March 20th, 2008 at 6:04 am
I could be wrong… But the 8 people they laid off sound like the lower echelon of the pay scale… the ones that are paid less than the towel boy yet slightly more than the beer venders. If a franchise was truly in need of cutting costs.. would they not restructure one Player contract and save more money than cutting those 8 people. But then again who visits the Bronco’s website..And who needs public relations when you have a front office that Cuts Javon Walker just to save 5.4 million dollars….Hey wait maybe they are in finacial trouble…The owners should sell the team to canada and give the Bills some competition.
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March 20th, 2008 at 6:19 am
Owners beginning to posture because of the ‘inequity’ of the CBA and the players getting too much of a share at 60-something percent of the ultra massive DGR? Nah…
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March 20th, 2008 at 6:19 am
1) Edgar Kaiser has the right of first refusal for any sale of any part of the Bronco’s. He is a scumbag that Pat has already dealt with in court. If he gets his hands on any part of the Bronco’s he will rip it apart for profit. This is “not” an option.
2) I tend to believe that there are $$ problems, even going back to Elway there was always “deferred” $$.
3) Pat Bowlen reached out to John Lynch, John responded by signing a very low priced contract.
4) Past history with Pat has been above boards, he has always told it like it is so I doubt this has anything to do with posturing.
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March 20th, 2008 at 7:27 am
Did anyone consider they may just be making room for Travis Henry’s kids?
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March 20th, 2008 at 9:56 am
The Edgar Kaiser issue was resolved years ago. He lost any postion he had.
Pat has had money problems for years.
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March 20th, 2008 at 10:10 am
Brian_21 figured there is a good chance these are motivational firings?
So getting rid of the Broncos website blogger is gonna help our pass rush?
I wonder if it would help out Shanny’s red zone efficiency if Florio got the pink slip too?
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March 20th, 2008 at 1:18 pm
Rumor has it Kirk and Mason dropped a rubber ball full of oil out a 3rd story window of the Bronco’s complex.
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March 20th, 2008 at 6:44 pm
Well, badfish650, if they were fired to save $, why fire guys that barely make anything in relative terms? What I cam up with makes the most sense to me, at least. Yet my mind is open. If the Broncos show evidence of a cash flow problem and prove that this is the best way to fix it, then others and I will rethink things.
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