Owning The Texans: For Love Or Money? - Battle Red Blog

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When Spencer Tillman talks about EBITDA, is that a tell?
This story starts with one of the most inane things I have ever heard in my life.
Spencer Tillman says RE: Nick Caserio’s offseason, “I don’t think I’ve seen a better job by a GM in the last decade, or more.” pic.twitter.com/yIOTHjgezv
Eventually, reaction to that statement upset Spencer.
You truly thought about it again; and in the end came to the same angry conclusion? That you’re comparing wins and losses to how I graded a GM that inherited a finantial dumpster-fire is proof that you really didn’t hear EVERYTHING I said. https://t.co/pNEcMyS7gDhttps://t.co/h6HKredVnn
“Finantial (sic) dumpster-fire.”
Tillman continued by focusing on the financial aspect of the Texans.
Hasn’t helped WHAT? W’s & L’s ? While important to many, that’s not the only metric in the infinite game of money. Name ONE GM in the last twenty years that has tackled a problem this deep. It’s easier to replace parts to a winning franchise, players will even take cuts to stay. https://t.co/cyUDucq78X
Well, Spence, there are lots of general managers that have been in salary cap hell. Even the Texans! It’s not new. I responded, and the financial discussion continued.
The bar is in plain sight. Your argument sounds like a frustrated fan’s position. And I get that. But don’t say he’s done nothing significant. EBITDA says different. https://t.co/XMED9AVdf5
Before I continue, I get it. Spencer Tillman is a mouthpiece for the front office. For years, he has deemed virtually every Texans player the best at his position regardless of actual, you know, facts. Spencer’s role has been to be the biggest cheerleader for the team because, hey, he knows where his bread is (often) buttered. We’re all hustlers. I get it.
My worry is, when Tillman is at HQ on Kirby, is this what he’s hearing? Is this the message the front office is sending internally?
Let’s pause for a moment. Just what is EBITDA, anyway? EBITDA = earnings before interest, taxes, depreciation, and amortization. Basically, what is the company’s profitability on the business side. In this case, the company is the Texans.
While we’re on the topic of financial statements, please allow me to introduce you to the term “goodwill.” Goodwill includes non-tangible assets such as customer loyalty and brand reputation. Do a bunch of fundraisers for local charities? Goodwill. Punching every fifth customer? Not goodwill. Get it? Got it? Good. When you are an NFL franchise, loyalty and brand recognition are slightly important.
One more important little thing: when Jamey Rootes was the President for the Texans, his primary function was decoupling financial performance from the on-field performance. For context, the McNairs are worth about $4.3BB dollars. Let’s say you’re worth $1MM. Good for you! I’m totes jelly! For every $1MM Nick Caserio saves the McNairs, you have saved $250. It’s what the McNairs tip skycaps (I hope!).
My point is, do you see how irrelevant the money is? It’s meaningless. No matter the savings he reaps from the Texans’ operations, Cal McNair will still have plenty of money left to buy Battlefield 2042. Promise.
So, how’s this for EBITDA?
A first in #Texans home game history?

Out of all the stations, I’m the ONLY local news sports reporter at the game. (And no, they’re not all at the World Series ) #Committed pic.twitter.com/XvHN1gqZvJ
How is this for goodwill?
3rd quarter vibes when you’re down 38-7 under Jack Easterby’s regime. #FireEasterby pic.twitter.com/BqE3KGhbjh
Caserio’s focus, aside from COMPETITION, was restructuring contracts, but to no apparent end. Nothing was done with the money that was freed up.
Let’s bring this to a not-so-happy-ending. One of the primary mouthpieces for the Houston Texans is talking about EBITDA. Caserio restructures a bunch of contracts without doing anything with the extra cash.
In the meantime, nobody is showing up to the games, and merchandise sales are way down. I mean, whose jersey are you going to buy? Justin Britt? Lonnie Johnson, Jr. (which I hear is delivered already burnt)? Concessions and merch bring in a lot of dough. Cal is getting none of that, or at least far, far less than he used to.
For my money, every indication seems to be that Caserio’s primary focus is to make extraordinarily rich people just a bit more rich. The problem is that the Texans are ignoring the other non-EBITDA factors like goodwill.
In other words, the Texans’ front office is running the franchise into the ground because they don’t understand how successful teams operate. I get that Caserio is facing an uphill battle and there’s plenty of salary fat on the roster, but he seems to care more about enabling Failson than he does about improving an NFL team. He’ll need to prove to me otherwise in the future (as an aside: I don’t understand the blind faith I am supposed to have in Caserio any more than I was supposed to trust Bill O’Brien. Didn’t we see how well that worked out?).
I’m so sorry, Spencer. As a fan of the Houston Texans, I would like to have a team that competes for the Super Bowl, not one that make billionaires just a tad more money. That’s on me.


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