The Cost to Change the Mascot

I was reading ESPN.com a few wees ago, a section I traditionally avoid called "NFL Nation", and a writer asked a very interesting question. Kevin Seifert asked, "Why would a capitalist such as Washington Redskins owner Dan Snyder oppose changing his team's name when he could make a ton of money from merchandise sales adorned with the new brand?"

Fair question, Mr. Seifert.

I don't have the answer, because clearly I don't agree with how Snyder has handled this situation. What I do know, though, is that there are some factors that play into the change of a team nickname before the franchise can reap large profits.

The amount estimated for the potential Charlotte NBA franchise name reversion is $4 million, according to Fred Whitfield, the Hornets CEO. By comparing the money associated with the team we might get an idea of what financial arena we may be playing in.

During the 2012-2013 season, Forbes measured the Redskins revenue as $381 million and Charlotte at $115 million. Also, the value of the Redskins was estimated as $1.7 billion, and the Bobcats at only $410 million.

These numbers don't have a clear association with whatever it would cost to change the franchise name and mascot, but they do give us an idea of the amount of money surrounding the organizations. So if it would cost the Hornets only 1/100th of their value to change their name, we would be looking at about $17 million for the Redskins. I think that is a quality and fair estimation.

If it would really cost less than $20 million to change the franchise name, the real question is why is Dan Snyder spending millions today on public relations and defending the name? I think it is safe to say it will be much more expensive for the team, financially and socially, in the long-run to defend the name.

Mr. Seifert brings up a point that many have ignored. With a name change comes new jerseys, new merchandise, new t-shirts, foam fingers, etc. According to the NFL in 2013, the Washington Redskins sold the 4th most merchandise in the NFL. Think about purchasing a new jersey every year? Most people don't because they don't have to. So the Redskins are already making a lot of money on merchandise selling to a market that already has a ton of merchandise from the organization. With a name change comes a new market desire for this brand new gear at such a high level that the money will be overwhelming.