Beerball Posted November 30, 2010 Share Posted November 30, 2010 Missed this when it first came out... The money, $28 million from each of the 32 clubs, is in addition to reserves the league has saved that are sufficient to pay for two years of interest on roughly $1 billion of stadium debt that flows through the league, the sources said. Link to comment Share on other sites More sharing options...
dollars 2 donuts Posted November 30, 2010 Share Posted November 30, 2010 Beerball, that is juicy stuff. Thank you. hmmm, if all the Board members pooled their spare resources together I wonder how much money our lockout chest would be? Link to comment Share on other sites More sharing options...
Spiderweb Posted November 30, 2010 Share Posted November 30, 2010 Beerball, that is juicy stuff. Thank you. hmmm, if all the Board members pooled their spare resources together I wonder how much money our lockout chest would be? About $803.71 Link to comment Share on other sites More sharing options...
Big Turk Posted November 30, 2010 Share Posted November 30, 2010 Missed this when it first came out... The money, $28 million from each of the 32 clubs, is in addition to reserves the league has saved that are sufficient to pay for two years of interest on roughly $1 billion of stadium debt that flows through the league, the sources said. If they raised $900 million, why wouldn't they just raise another $100 million and pay off the debt? Why pay interest on it, when they could just pay the debt off period...that makes little sense...It would be like someone who has a $10,000 credit card, and has saved up enough money to pay it off, yet still just makes the minimum payments each week... Link to comment Share on other sites More sharing options...
Spiderweb Posted November 30, 2010 Share Posted November 30, 2010 If they raised $900 million, why wouldn't they just raise another $100 million and pay off the debt? Why pay interest on it, when they could just pay the debt off period...that makes little sense...It would be like someone who has a $10,000 credit card, and has saved up enough money to pay it off, yet still just makes the minimum payments each week... If I recall correctly, the NFL is guaranteeing or covering all the debt, only a portion. Can anyone elaborate further? Link to comment Share on other sites More sharing options...
l< j Posted November 30, 2010 Share Posted November 30, 2010 Our lockout chest would be made of styrofoam and full of ice and cheap beer. Seriously, though: are there any figures available as to which stadiums have league debt tied to them (as opposed to the individual owner/franchise, or a municipality)? I wonder how that is allocated. kj If they raised $900 million, why wouldn't they just raise another $100 million and pay off the debt? Why pay interest on it, when they could just pay the debt off period...that makes little sense...It would be like someone who has a $10,000 credit card, and has saved up enough money to pay it off, yet still just makes the minimum payments each week... There are tax advantages to carrying debt for corporations. Also, debt can always (at least in an era of insanely cheap credit) be restructured, but lost equity is gone forever. Link to comment Share on other sites More sharing options...
shoveldog Posted November 30, 2010 Share Posted November 30, 2010 If they raised $900 million, why wouldn't they just raise another $100 million and pay off the debt? Why pay interest on it, when they could just pay the debt off period...that makes little sense...It would be like someone who has a $10,000 credit card, and has saved up enough money to pay it off, yet still just makes the minimum payments each week... Two reasons... 1) I doubt the $1 billion is the full debt. A single stadium would cost that much. I'm sure it's only a portion that is guaranteed. 2) Tax Deductions. The deductions and depreciation are probably huge. It's better to take those over time and invest the other money elsewhere. Link to comment Share on other sites More sharing options...
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