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WT: Redskins valued at $1 billion


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Redskins valued at $1 billion

By Eric Fisher

THE WASHINGTON TIMES

http://www.washtimes.com/sports/20030818-115053-7465r.htm

The Washington Redskins likely will receive an estimated franchise value of about $1 billion by Forbes Magazine when its annual financial ranking of NFL teams hits newsstands late next week, industry sources said.

Forbes' closely watched rankings corroborate a report from industry publication SportsBusiness Journal, which cites financial sources valuing all of the Redskins' holdings, including FedEx Field, at up to $1.5 billion.

The Redskins' numbers are easily the highest in U.S. sports history, and substantially beat the $800 million owner Daniel Snyder paid for the holdings more than four years ago. The Redskins have been the most valuable sports team in America since 2000, according to Forbes.

Fueling the increased value are the Redskins' rising revenue streams, now amounting to more than $250 million a year, and a recent sale of about 20 percent of the Redskins' equity for $200 million to FedEx chairman Fred Smith, local real estate executive Dwight Schar and Florida insurance executive Robert Rothman.

The transfer of equity, which includes no controlling interest, is set to be formally approved by NFL owners this week. NFL owners have until Friday to vote on the transfer electronically, but there are no outstanding issues since the league's finance committee already has unanimously approved the deal.

British soccer power Manchester United briefly hit $1 billion in total stock value in 1998, but now stands nowhere near that figure.

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ND,

It means the Redskins have so much revenue coming in for the team that we have immense amounts available to us to sign every player we want to a $20 million bonus. That's our advantage. We have no problem paying out the bonus money which is what's going to keep the identified core of players together for a while.

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Uh, Code. A $200 million increase in one's investment is pretty astounding. And that doesn't even include the revenue stream that produces a profit of over $50 million a year. Trust me, Snyder didn't get out of his other businesses because he was losing his shirt in football :).

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Yeah, since when is a 25% increase in perceived value in 4 years bad? For a stock market comparison, the S&P 500 has gone down a little over 20% in the same span.

And didn't the initial $800 million include FedEx Field? The article states that the Redskins + Holdings (i.e. FedEx Field) are worth $1.5 Billion. If that were the case, then he's increased his investment by nearly 2 times.

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Originally posted by gridironmike

I hope this means that when he pays off all the debt, he reduces our parking and concession prices!

man i wish i could be born again as his children, once he pays off the debt $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

:laugh:

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It means the Redskins have so much revenue coming in for the team that we have immense amounts available to us to sign every player we want to a $20 million bonus. That's our advantage. We have no problem paying out the bonus money which is what's going to keep the identified core of players together for a while.

Art, what part of the salary cap don't I get here? Your bonuses are prorated over the life of the contract or paid upfront. The only advantage I can see is that we can pay it all this year if we want and take the hit now. I'm not sure what the advantage is of having a higher signing bonus.

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Reagan,

There's no advantage to paying a higher signing bonus other than if a player is due to earn $6 million in base salary for one season, you can give him $14 million in a signing bonus over seven seasons, and you'll save a lot of money against the cap.

The ability to afford signing bonus dollars of any size is an advantage the Redskins have over many teams. The ability to pay that money out is cash out of pocket. Snyder is maybe the ONLY owner who can go into each season with up front costs of $60 million in just bonus dollars and still make money. That's a benefit.

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