Mailbag: More on Eagles Draft

Mailbag: More on Eagles Draft

Reader Alison writes in to point out the poll on DonovanMcNabb.com asking what position the Eagles should address with their first pick.  Not surprisingly, QB didn't make the list.

Reader George writes in from Boston with a nice long rant on the Eagles as a business.  He starts:

Something that I'm reminded of today is that pro sports is above all a business. I'm thinking of this as I reflect on the Eagles draft. I'm a displaced Philly fan living in Boston, working in finance, so I 'get it.' That doesn't mean that I have to like it. There's essentially two ways to run a business, one is for growth and the other is for cash. Running a business for cash is often perceived as the safe play.

The rest of his rant after the jump.

Once the business is established, it doesn't reinvest a lot of capital, maximizes profitability, generates a steady stream of income and cash flow, and so long as none of its competitors are really out-executing it or taking significant market share, the business can continue to hum along and make money for a long time. Eventually, however, many of these businesses either get diplaced by more agile or more innovative competitors, or by larger companies that have better scale and lower costs.   

   Running a business for growth is more risky. The growth business reinvests a lot of its earnings and cash in R&D or sales capacity to grow the business. It looks to make strategic acquisitions, and sometimes chooses to go into debt, potentially betting the future for opportunities that are available today. There is inherantly more risks to the growth strategy. A company could make bad investments, R&D could bear no fruit and acquisitions can carry significant integration and execution risk. And often, growth strategies fail and companies go bankrupt. But sometimes they don't, and we get a General Electric, a Microsoft or an Apple. From an investment perspective, investors like cash, but they pay up for and lust for growth. Why? because one dollar is always worth one dollar, but the dream of what one dollar invested today could be worth tomorrow, next month or next year is a big part of what makes this country go. Everyone wishes they'd invested that dollar in Microsoft in 1990.

nbsp;   While the Eagles might appear to be in growth mode, from a business analysis perspective they are obviously in running the business for cash. By trading down and drafting for the future, the Eagles are conservatively choosing to sit on cash as opposed to making capital investments that could help the team win now. Moving down in the draft lowers their total cash outlay required to sign their total draftees, lowering capital expenses and total reinvestment rate. Strategic acquisitions in recent years seem to have been small and anything but risky. The Eagles have been running the franchise under the salary cap for years, maximizing profit margins at the expense of innovation and improving their competitive position in the market. This has resulted in the Eagles being an above-median performer over the last decade, but having constantly fallen short of absolute success as it is measured in their business segment.

   The company - excuse me, the Eagles - were not always running the business for cash. Reid, Heckert  & Co. used to be an innovative management team. The drafting of Donovan McNabb and the signing of Jon Runyan started the growth cycle. The Eagles were in full growth mode when they acquired Jevon Kearse and TO, and drafting players that could potentially make a positive contribution right away. Maybe that experience has left the management team more conservative, and understandably so. Here's the problem: in the NFL, the future is always now, this season. Business performance gets judged annually. There is no carry over, no running the business for cash, everyone starts anew each year. Yes some of the players are carried over, but every team is remade each season. Every September, each team start with 0 wins and 0 losses before the first coin flip.

 

    So here's to imploring CEO Jeff Lurie. Jeff, grow the business. Invest, acquire, think strategically. Add valuable assets around your core capabilites. Boldly defend your market position. Bury the competition. Increase the returns for your shareholders, or us fans. See what that dollar in your pocket can be worth in November, December or even in January. Because come that second week in February, that dollar is worth just a dollar.

Delaware avenges 36-point loss with upset of Northeastern

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Delaware avenges 36-point loss with upset of Northeastern

BOX SCORE

NEWARK, Del. -- Freshman Ryan Daly scored 27 points and Delaware avenged its worst loss of the season, upsetting Northeastern 69-62 on Thursday night for the Blue Hens' first Colonial Athletic Association win of the season.

Cazmon Hayes added 13 points and Eric Carter 11 for Delaware (8-12, 1-6), which snapped a six-game losing streak that had included a 36-point loss, 90-54, to the Huskies on Jan. 5.

T.J. Williams scored 28 points, the only Huskies player to reach double figures. Northeastern (12-7, 5-2) lost its second straight after an eight-game winning streak.

Three-pointers by Devonne Pinkard and Daly gave Delaware the lead for good at 46-41 with 11 minutes left. A 14-2 run with eight points each from Carter and Daly made it a 12-point lead with two minutes to go.

Delaware made 17 of 22 free throws to 7 of 14 for Northeastern.

Drexel drops to 1-5 in CAA with loss to Elon

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USA Today Images

Drexel drops to 1-5 in CAA with loss to Elon

BOX SCORE

ELON, N.C. -- Tyler Seibring scored a career-high 25 points with seven rebounds and six assists, Steven Santa Ana added 22 points and Elon beat Drexel 93-73 on Thursday night.

Seibring scored 20-plus for the third time this season, hitting 4 of 6 from distance, and Elon led from start to finish. It was Santa Ana's sixth career 20-plus game in just his sophomore season.

The Phoenix hit double-digit 3-pointers (10) for the 10th time this season.

Dainan Swoope scored 16 points, Brian Dawkins 13 and Dmitri Thompson 12 for Elon (11-9, 3-4 Colonial Athletic Association), which hit 25 of 28 free-throw attempts -- including 17 of 18 in the second half.

Elon scored the first nine points of the game and had a 10-point lead at halftime.

Kurk Lee and John Moran each scored 15 points for Drexel (7-12, 1-5). Miles Overton added 13 points and Sammy Mojica 10.