The AAFL Needs Some Cash!

To run a successful sports league there are two very important items. The first is the staff. You know, players, coaches, referees, etc. The second is cash. The All-American Football League has had no problem with the first one, as was evident during their inaugural draft. However, they seem to be having a slight problem with that second part.

The new All American Football League will have to postpone its 2008 season unless it finds additional financial backing.

The announcement Thursday came less than a week before camps were to open for the six-team league.

Now, I know that there are a lot of football fans out there with deep pockets, but I just can't see too many of them putting up thousands of dollars to keep the AAFL afloat. Though, maybe someone should let Ben Bernake of this dire situation because apparently the problems are tied directly to the subprime mortgage crisis.

In an attempt to secure kickoff of its inaugural season as well as its long-term future and success, the All American Football League® has begun discussions to explore multiple financing options.

Since inception, the League's finances have been indirectly tied to the $300 billion federally guaranteed student loan asset backed securities market. In August, the sub prime mortgage crisis began spreading into other sectors such as municipal bonds and federally guaranteed student loans. The situation, which was considered to be temporary at the time, has continued to worsen.

Despite the fact that the Federal Reserve has repeatedly lowered interest rates during this financial crisis, their efforts have not yet restored liquidity in many asset backed markets, including municipal bonds and student loans.

The League held its inaugural draft in January, and the team rosters and staffs are all in place. All teams are scheduled to open training camp Wednesday if liquidity can be immediately restored.

Every effort is being made to insure that the '08 season will be played as planned, but this depends upon a locating new majority owner with the needed liquidity, which in turn depends upon the League being able to finalize a TV deal. Otherwise, the inaugural season will be postponed to '09.

In all seriousness, I've dealt with the AAFL, and I've never had any problems with the people that I interacted with. They all wanted to put together a competitive football league where players could continue their careers, and fans could enjoy watching some quality games. Hopefully they can get this financial situation worked out, and I wish them nothing but the best.

Gators Welcome Back Donovan In A Big Way, Plan To Pay Him More Than Meyer

Last week it looked like Billy Donovan had left Gainesville for the NBA. Now he's back, and his new deal will pay him more than head football coach Urban Meyer.

Both coaches have been offered new contracts at the same time, and Donovan's extra championship seems to add a little more value. Donovan is reportedly going to be paid $3.5 million per year over six years(with an optional 7th), and Meyer's contract is setup as $3.25 million over six years.

Both are nice increases for the coaches, Donovan had been making $1.7 million per year, and Meyer had originally signed a contract worth $2 million(guaranteed + incentives) per year. However, I am bit surprised that at a school where football has traditionally been king the head basketball coach will be getting paid slightly more than the head football coach. I always believed that there was a ceiling of sorts in place for the salary of the basketball coach that would keep him from being paid as much, or more, than the football coach. It appears that I was wrong in that assumption. In any case, both coaches are reaping the benefits of their recent championships.