Jon Gruden 10-Year $100 Million Deal From Oakland Raiders Sounds Las Vegas, But Mark Davis Was Smart
The news that Oakland Raiders Owner Mark Davis plans to pay Jon Gruden $10 million a year for 10 years, or $100 million, may seem like too much money, and from the on-field standpoint, it is. But off-field, it’s a smart move.
Jon Gruden is the only coach in NFL history to be associated with a purchasable meme: Chucky. Davis, the creator of The Raider Image stores when the team was in Los Angeles, obviously sees that hiring Gruden marks the return of a man who’s very style was crafted when he was with the Oakland Raiders. Here comes Chucky.
Davis knows that the first game, and the first NFL season, with Gruden as head coach will result in sell-out crowds, higher season ticket and luxury box sales. And that’s even if Gruden doesn’t deliver the won-loss record the fans believe he will generate.
All of this factors in to the team’s overall worth. This helps the Raiders franchise value a little – a new stadium helps better – but it certainly will cause a jump? By how much? I would say that with merchandize sales, suites and tickets, the Raiders will make the $100 million expenditure back over that 10 year period. It will be large at first, and then diminish as the time passes, but they will get it back.
Of course, Davis has to do some things to make sure of that: the Raiders, and I’m not joking, should be making their own Chucky dolls. At $40 a doll, all the Oakland Raiders need to do is sell about 250,000 a year to pay Gruden’s $10 million salary.