uncle flap Posted September 29, 2012 Share Posted September 29, 2012 I don't know if I should be surprised or not, since there hasn't been much local fanfare, but I thought maybe someone here would've picked up on this. Last night was the kick-off event for the Buffalo Fan Alliance. Along with some politicians and local hot shots, Matt Sabuda and Brian Cinelli unveiled the basis for their plans on helping increase the profitability of the Bills and also reducing the amount amount of potential debt incurred by a subsequent owner that would keep the Bills in Buffalo. The main tenet is a bond program which would work as a low (or actually zero, IIRC) interest loan to potential buyers of the Bills to reduce the overall cost/debt load. As Cinelli pointed out, even the richest of the rich use various types of financing to purchase teams, despite whatever wealth they have on hand. For example, Daniel Snyder financed $500M of the $800M it cost to buy the Redskins. The BFA believes they can raise $100M in bonds to substantially defray that type of debt in the sale of the Bills which would obviously make the team more attractive and affordable to an owner or ownership group aiming to keep the Bills in Buffalo. Basically, it would be like a $100M loan over say 30 years that would be far more attractive than other types of financing currently available. I know there have talks about a Bills Bonds program in the past, but these guys have actually done the leg work and have the backing of prominent people and organizations to create a viable plan that really gives fans an opportunity to make a difference. Not only are local Bills fans one of the most willing markets to spend money on the team, this plan allows ex-pats to invest in the team's future as well. Unlike the Green Bay shareholder program, the bonds would not be a direct investment to the team and are well within the NFL by-laws. As last night was simply a preview, there is not much on this in print or on the web yet, but expect to hear much more about this soon. Channel 2 was there filming, although I don't see any video online now. Here's their blurb on it: http://www.wgrz.com/news/article/183749/37/Bills-Fans-Local-Leaders-Meet-To-Discuss-Teams-Future-in-WNY Here's the Buffalo Fan Alliance website, although there's not much there yet either: http://www.buffalofanalliance.org/ What do you guys say? Wishful thinking? I was skeptical at first, but after hearing the details I think this can and will take off, and even become a model for other franchises- not just the bond aspect, but also a variety of naming rights and having taxes generated by teams and players go toward stadium and other franchise related maintenance. My apologies for not having further details, but I'm happy to try to answer any ?s about it. I'm not involved in any official capacity, so if you're interested in getting involved, please contact the BFA through their website. Link to comment Share on other sites More sharing options...
calbear Posted September 29, 2012 Share Posted September 29, 2012 Is $100M enough of a dent to make it profitable enough to stay in Buffalo? Great idea and I love the creativity but I'd think we'd need to be contributing significantly more - like $250M+. And even so, when looking at the interest on that amount versus additional revenue from advertising / luxury boxes / seat license fees in a larger market, how does this stack up? Link to comment Share on other sites More sharing options...
OvrOfficiousJerk Posted September 29, 2012 Share Posted September 29, 2012 (edited) Is $100M enough of a dent to make it profitable enough to stay in Buffalo? Great idea and I love the creativity but I'd think we'd need to be contributing significantly more - like $250M+. And even so, when looking at the interest on that amount versus additional revenue from advertising / luxury boxes / seat license fees in a larger market, how does this stack up? Every hundred million counts. The issue won't be how to keep the team profitable, it'll be how to throw enough money around versus offers from L.A. The luxury boxes/psl's exist mainly to pay off the stadium; the government takes care of the stadium in our case. Whoever buys the Bills to keep them here won't be doing it to turn a profit -- make a couple million every year definitely but not rake it in. What the Buffalo Fan Alliance is for is to make sure these guys don't go into debt up to their eyeballs so the debt service isn't unbearable. IMHO First Niagara should make like "Bills savings accounts" where the money you put in goes toward financing these guys debt. Make crappy interest for yourself but the bank has the capital to give to the owners. Edited September 29, 2012 by OvrOfficiousJerk Link to comment Share on other sites More sharing options...
BillsWatch Posted September 29, 2012 Share Posted September 29, 2012 The IMHO First Niagara should make like "Bills savings accounts" where the money you put in goes toward financing these guys debt. Make crappy interest for yourself but the bank has the capital to give to the owners. There is no reason for a bank to give much in interest at all as long as Federal Government is basically lending money to banks for free. Link to comment Share on other sites More sharing options...
calbear Posted September 30, 2012 Share Posted September 30, 2012 There is no reason for a bank to give much in interest at all as long as Federal Government is basically lending money to banks for free. Fair point - so does this initiative imply that whoever buys the team won't have access to capital at really low rates? I have no idea what the cost of capital on debt for such a deal would cost. And though $100M low/no interest loan would surely help, I wonder what a city like LA could do to help finance it (float large bonds, help coordinate private low interest options?). Man - just seems like it's a reality that it can't be as profitable for either the owners or the NFL itself to have the team where it belongs. And given Goodell's willingness to sully "the Shield" for such a relatively small amount of money with the ref situation, do we truly think there's a chance? I pray so, and hopefully such creative financing mechanisms and willpower will help make it happen. Link to comment Share on other sites More sharing options...
OvrOfficiousJerk Posted September 30, 2012 Share Posted September 30, 2012 Man - just seems like it's a reality that it can't be as profitable for either the owners or the NFL itself to have the team where it belongs. And given Goodell's willingness to sully "the Shield" for such a relatively small amount of money with the ref situation, do we truly think there's a chance? I pray so, and hopefully such creative financing mechanisms and willpower will help make it happen. Moving the team won't be profitable necessarily for the NFL -- it would be for the individual owner. All the luxury box/psl etc etc stays with the owner, so the NFL has no incentive really to move the team Link to comment Share on other sites More sharing options...
Recommended Posts