Forbes.com: NFL’s High Debt Means No Lockout

[tr1]

http://blogs.forbes.com/sportsmoneyblog/2008/11/nfls-high-debt.html

In May, the owners of the National Football League notified the players union that they had exercised their right to opt out of the current collective bargaining agreement, which ran through the 2012 season.

This means there will be no salary cap in 2010 (unless a new agreement is reached before that season), the last year of the contract. While still robust, NFL profit margins have been trending down due to higher player salaries and debt payments. Many speculate the owners will lock out players before the 2011 season unless there is a new agreement more favorable to the owners in place by then.

But the NFL’s big debt load makes this highly unlikely. By my count teams owe more than $6 billion, tied to its franchises and stadiums. This month the NFL rolled its $1.4 billion credit line into a four-year term loan, meaning the league will have to pay back $350 million in 2011. It is hard to see why owners would cancel a season they have to pay back a nut this size. Sure, the NFL could refinance, but interest rates are more likely to rise than fall given the Federal Reserve’s apparent attempt to monetize our economy out of the banking and mortgage mess.

The Cowboys, Jets and Giants--three of the league's most high-profile, big-market franchises-- have a mountain of debt tied to new stadiums scheduled to open during the next two seasons. No football would mean their owners would have less money to pay debt expenses. Plus, the league’s broadcasting deals with Fox and CBS expire after the 2011 season. The billions of dollars the networks pay the league in multi-year deals help the NFL borrow at comparatively low interest rates. It would be pure folly for the owners to spit in the eyes of the networks a year before they had to negotiate new contracts.

[tr1]

Well, one way to stick it to the big market teams would be for small market teams to insist on a lockout.

This could get interesting.

[bubba9497]

The Cowboys, Jets and Giants--three of the league's most high-profile, big-market franchises-- have a mountain of debt tied to new stadiums

but BigD said Jerrah was trying to borrow $350 million because he "didn't" need money, nor had any debt issues :whoknows:

[Titaw]

I think that this is a good thing for football, honestly. Prices for anything NFL related are soaring out of control and rookies are getting paid FAR more than established Pro-Bowl vets. It's time the NFL places a salary "slot" structure on the draft and make these rookies earn the big time contracts they are getting for not even playing a down.

[alleycat]

Help me out here football guru's !!

If the contract ended...Would we lose all our CAP HELL troubles?

Like would all the DEAD money be cancelled from past years(Cap debt). I know we would have to pay what we owed...But would that put us back to ground zero with salaries ??

It sounds so good...I can't believe it...Do you know ?

[bedlamVR]

I think everyone gets around the table and works out a CBA extention long beofore anything like this becomes unmanagable .

Those hoping for an end to the cap are going to be disapointed .

Uncompetitive football is not going to bring in those huge TV $$$$, and banks are going to be more reluctant to lend to the NFL as a whole . I do think there is going to be a greater redistribution to the smaller teams, and for once they may have some of the big five over a barrell.

[tr1]

but BigD said Jerrah was trying to borrow $350 million because he "didn't" need money, nor had any debt issues :whoknows:

BigD lives in an alternate universe.

[kuraitengai]

Help me out here football guru's !!

If the contract ended...Would we lose all our CAP HELL troubles?

Like would all the DEAD money be cancelled from past years(Cap debt). I know we would have to pay what we owed...But would that put us back to ground zero with salaries ??

It sounds so good...I can't believe it...Do you know ?

ive asked that in several threads but never gotten an answer.

since we do all the backloaded contracts and keep converting salary to bonuses and all that to get under the cap. if we have an uncapped year, couldnt we just take all the high bonuses and transfer them to the uncapped year. we still pay them, but it would get them off the books for the future capped years.

cuz i know the bucs were looking at doing that to sign asante samuel last offseason. they had 40 mil in cap space i believe, and they would have given him a huge signing bonus of like 20 mil which could have been written off in the first season and they would still have had 20 mil in cap space left. his yearly contract would have still been in the 9-10 mil a year range, but it wouldnt be killing their cap since the 20 mil bonus was already paid and off the books.

[BigDFan5]

but BigD said Jerrah was trying to borrow $350 million because he "didn't" need money, nor had any debt issues :whoknows:

I really hope your IQ is higher in real life bubb, I never said that I said he was refinancing high interest rates which is exactly what he is doing. I can not help it if you do not understand simple things like that

[tr1]

I really hope your IQ is higher in real life bubb, I never said that I said he was refinancing high interest rates which is exactly what he is doing. I can not help it if you do not understand simple things like that

You ignore the real problem...that Jerruh said he'd pay for any cost overruns...and there's plenty of them...and no cash to take care of them...hence, the "refinancing"...which, SHOULD HE BE ABLE TO GET IT, will help with his cash flow.

IF NOT, THIS WILL THE THE MOST SPECTACULAR FAILURE IN THE HISTORY OF THE BUSINESS SIDE OF THE NFL!

:rotflmao:

We're talking about A THIRD OF A BILLION DOLLARS!

[BigDFan5]

You ignore the real problem...that Jerruh said he'd pay for any cost overruns...and there's plenty of them...and no cash to take care of them...hence, the "refinancing"...which, SHOULD HE BE ABLE TO GET IT, will help with his cash flow.

IF NOT, THIS WILL THE THE MOST SPECTACULAR FAILURE IN THE HISTORY OF THE BUSINESS SIDE OF THE NFL!

:rotflmao:

We're talking about A THIRD OF A BILLION DOLLARS!

\

Clueless yet again, I guess when you are good at something stick with it.

Please tell me what these cost overruns are tr1 Stadium price tag is still the same it has been. So what are the overruns?

As for refinancing, it has nothing to do with overruns it has to do with saving interest payments. Please tell me you are not this blind when it comes to business sense. Getting this loan save millions a year in interest payments hello thats called smart business

[BillyKilmer]

I really hope your IQ is higher in real life bubb, I never said that I said he was refinancing high interest rates which is exactly what he is doing. I can not help it if you do not understand simple things like that

Your getting to the edge of being Rude always remember as a Cowboy you are here a guest Bubba is one the Backbones of this Site insulting him is really bad form.

[Ray Brown]

this could lead to Pay Per View NFL football

[BillyKilmer]

this could lead to Pay Per View NFL football

All ready pay large money for the NFL package on Direct TV

The HD has been worth it but this time next year who knows the way things are going... (I am in construction)

[tr1]

Please tell me what these cost overruns are tr1 Stadium price tag is still the same it has been. So what are the overruns?

The Cowboys estimated the stadium would cost $650 million when they announced the project in 2004. With $350 million of public funding and $76 million from the NFL, it looked like a choice deal for the team.

The club arranged to borrow at least $450 million through Banc of America Securities for its portion, with the first $126 million through the ARS market. But Jones agreed to cover cost overruns as part of the team’s share, and like many stadiums in this period, the price has spiraled.[/red]

http://www.sportsbusinessjournal.com/article/60527

How's that reading comprehension coming along?

[Big Blue Joe]

Well at least one good thing will come out of this economic crisis.

[Ray Brown]

All ready pay large money for the NFL package on Direct TV

The HD has been worth it but this time next year who knows the way things are going... (I am in construction)

i wish i had the ticket, but can't afford it yet.

By pay per view i meant that a viewer/fan would need to pay a fixed amount of cash to watch 1 game a weekend. Somewhere in the neighborhood of $7-$12 a game. This is a guess but i would say 60 million people watch football games each weekend. take approx. 60 million people and multiply that by $10. Thats $600 million a weekend. Multiply that by 17 weeks for just the regular season. Add in Playoffs and whatnot and the number is just massive. fans would freak, but when i came down to it sunday i bet a lot of people would fork over the $$$ to watch their team, i know i would. Now there is no way TV stations can match that type of cash. this is the way i see the NFL eventually going. talk about a way to eliminate debt.

[BigDFan5]

http://www.sportsbusinessjournal.com/article/60527

How's that reading comprehension coming along?

You already know that price tag lasted 5 minutes before Jerry added the big jumbo tron and other amenities. The cost was revised over 1 billion right after the Arlington vote. Its not an overrun if its planned. Here is an article from 2 years ago talking about the price tag

http://www.tomatopages.com/folsomforum/index.php?showtopic=11117&pid=138092&mode=threaded&show=&st=0

So its not my problem if that reporter was unaware of the actual cost of the stadium and mistakenly called it an overrun.

Problem is you knew the cost you just couldn't be intellectually honest and admit the article was flawed

Still waiting on that list of overruns

[tr1]

You already know that price tag lasted 5 minutes before Jerry added the big jumbo tron and other amenities. The cost was revised over 1 billion right after the Arlington vote. Its not an overrun if its planned. Here is an article from 2 years ago talking about the price tag

http://www.tomatopages.com/folsomforum/index.php?showtopic=11117&pid=138092&mode=threaded&show=&st=0

So its not my problem if that reporter was unaware of the actual cost of the stadium and mistakenly called it an overrun.

Problem is you knew the cost you just couldn't be intellectually honest and admit the article was flawed

Still waiting on that list of overruns

:rotflmao:

First, we know there are overruns...that's why this 'refinancing' is requesting MORE money (do the math);

And second, we'll know what those overruns are on the same day we learn how ticket sales are going...Jerruh never publicizes bad news...:rotflmao:

BTW, I'm thinking that October meeting with all of the financiers went badly...otherwise, we'd have probably never learned that Jerruh is out shopping for cash...and at that STAGGERING interest rate.

You puke fans amaze me at how willing you are to defend that pathetic owner of yours.

[The 12th Commandment]

Not really new info but a new presentation. Notice Jarruh's gettin' down with Urkell at six flags? He's really into too, look at those face tendons...like chords of steel!!! Wonder if the dan gave 'em a discount? My guess is not.

link

THE COWBOYS’ NEW STADIUM IS F’D

Jones has offered to shake his ass for as little as $20 million

You know that billion-dollar stadium that Jerry Jones is building for the Cowboys?

Turns out he needs a liiiiiiiiitle more money to pay for it.

The

Dallas Cowboys

are seeking to borrow $350 million by Dec. 1, according to numerous finance sources, in one of the worst credit environments in the nation’s history.

The club’s proposed deal would refinance $126 million the team borrowed last year through the now-imploded auction-rate securities market, as well as add new debt to cover cost overruns at the team’s $1.2 billion stadium that is set to open next year, the sources said.

-continued at link