JoeF Posted July 22, 2015 Author Share Posted July 22, 2015 (edited) If I'm correct in assuming their gate receipts are an accurate comp to your ticket sales, you were only 54 million off on that line item. I'm not sure you get to call me out for saying something. Just pointed out that you were right. Was not being sarcastic. I should have checked better, you called me on it appropriately. We are Bills brothers and sisters -- It was a learning moment for me as are many in my life. No harm done from my perspective and no sarcasm meant. The Forbes numbers display even more that this was a gift from Terry and Kim Pegula to Bills fans and WNY.... Edited July 22, 2015 by JoeF Link to comment Share on other sites More sharing options...
MarkyMannn Posted July 22, 2015 Share Posted July 22, 2015 I've always suspected they could have gotten the team for less given the suspect competition, but this is a solid return on investment. The annual shared revenue will likely keep going up every year, so will their margin. Also, the value of the team will continue to increase in value. The TV money per team in 2016 is at least 181 million. This is probably the safest investment in the world, if you have the ability to get in on it. That's the benefit of the purchase. It is the appreciation of the franchise, not so much the operating profit. Don't worry about TP, he is making a lot of money on this, wasn't a charitable move Link to comment Share on other sites More sharing options...
NoSaint Posted July 22, 2015 Share Posted July 22, 2015 Just pointed out that you were right. Was not being sarcastic. I should have checked better, you called me on it appropriately. We are Bills brothers and sisters -- It was a learning moment for me as are many in my life. No harm done from my perspective and no sarcasm meant. The Forbes numbers display even more that this was a gift from Terry and Kim Pegula to Bills fans and WNY.... My mistake on misreading - cheers! Link to comment Share on other sites More sharing options...
JoeF Posted July 22, 2015 Author Share Posted July 22, 2015 That's the benefit of the purchase. It is the appreciation of the franchise, not so much the operating profit. Don't worry about TP, he is making a lot of money on this, wasn't a charitable move I agree MM -- the return on the capital purchase price isn't an issue --- unless something very unforeseen happens franchise value will only grow. The only thing I would offer is that an NFL franchise in LA, San Antonio, Toronto, London is worth a handsome premium now and if another party had bought the Bills (such as a bombastic Presidential Candidate) that premium might have been too great to resist in the current lease period. We have no worries of that with the Pegulas. Link to comment Share on other sites More sharing options...
Kelly the Dog Posted July 22, 2015 Share Posted July 22, 2015 Terry and KIm did, however, pay about 400m more than they had to to get the team, just because he wanted to and was a little impatient. Link to comment Share on other sites More sharing options...
mitchmurraydowntown Posted July 22, 2015 Share Posted July 22, 2015 0.1 BN / 1.4 BN = 7% is a little low, but for a relatively safe investment, it's not a terrible ROI. typically though, you are correct, if it was just about the money they'd likely have looked for something closer to 15%. You give me something with a 15% ROI and almost assured appreciation, I give you the longest line this year. Link to comment Share on other sites More sharing options...
Webster Guy Posted July 22, 2015 Share Posted July 22, 2015 If you have multiple billions, these cash flow numbers are meaningless. Suffice to say all nfl franchises appreciate significantly in value, which is why terry paid half a billion more than the dolphins went for a few years ago--he will recover it in time. He only overpaid from a cash flow perspective (meaning with 1.4B debt service taken into account the bills lose money) but from a net asset value approach its still a solid move. and marrying a younger asian chick, thats also a solid move. They arent that funny but their bodies hold up quite well as they age. Link to comment Share on other sites More sharing options...
Kelly the Dog Posted July 22, 2015 Share Posted July 22, 2015 If you have multiple billions, these cash flow numbers are meaningless. Suffice to say all nfl franchises appreciate significantly in value, which is why terry paid half a billion more than the dolphins went for a few years ago--he will recover it in time. He only overpaid from a cash flow perspective (meaning with 1.4B debt service taken into account the bills lose money) but from a net asset value approach its still a solid move. and marrying a younger asian chick, thats also a solid move. They arent that funny but their bodies hold up quite well as they age. While what you said is basically true and will be basically true, if Terry tried to sell it tomorrow he would lose about 400 million on it. Link to comment Share on other sites More sharing options...
GG Posted July 22, 2015 Share Posted July 22, 2015 If you have multiple billions, these cash flow numbers are meaningless. Suffice to say all nfl franchises appreciate significantly in value, which is why terry paid half a billion more than the dolphins went for a few years ago--he will recover it in time. He only overpaid from a cash flow perspective (meaning with 1.4B debt service taken into account the bills lose money) but from a net asset value approach its still a solid move. and marrying a younger asian chick, thats also a solid move. They arent that funny but their bodies hold up quite well as they age. Amateurish observations on all fronts. Overpaying is overpaying. Link to comment Share on other sites More sharing options...
James Kelly Posted July 22, 2015 Share Posted July 22, 2015 0.1 BN / 1.4 BN = 7% is a little low, but for a relatively safe investment, it's not a terrible ROI. typically though, you are correct, if it was just about the money they'd likely have looked for something closer to 15%. That's more of a cash flow calculation at 7%... If the team appreciates in value they would also get a major return on the sale of the team at one point... Over a 22 year span the average nfl franchise has gone from a 279 million dollar valuation to a 1.022 billion dollar valuation... Link to comment Share on other sites More sharing options...
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