SBD/27/Leagues Governing Bodies

NFL'S ASSISTANCE PLAN HAS $200M IN STADIUM LOANS

          The NFL "has a new game plan to keep its teams at
     home," according to CNBC's Tyler Matheson last night on
     "Business Center."  Matheson: "The league said today it will
     commit more than $200 million in collateral for new football
     stadiums to prevent its teams from moving to other markets"
     (CNBC, 5/26).  Owners voted 28-1 yesterday, with two
     abstentions in Atlanta, to loan "up to half of private
     funding to teams in major markets for the building of
     stadiums."  The first recipients were the Patriots, Eagles
     and Broncos (USA TODAY, 5/27).  In N.Y., Richard Sandomir
     reports that the NFL will lend $112M to the Patriots, $54M
     to the Eagles and $43M to the Broncos.  The loans will be
     repaid from club seat revenue that would normally go to the
     visiting teams (N.Y. TIMES, 5/27).  In Boston, Ron Borges
     puts the Patriots' figure at "slightly more" than $141M, to
     cover about half the cost of a $277M facility.  If teams
     can't repay the loan because of unsold club seats, the loan
     will be backed by the league's TV revenue, which Raiders
     Owner Al Davis opposed: "This is a tax on all the teams that
     are not doing as well [as those with new facilities]. ...
     Never before in the history of the league have the poor
     given to the rich for them to do well. ... The use of TV
     revenue to cover a shortfall may not even be legal."  Davis
     abstained from voting, and the lone "no" was cast by Bengals
     President Mike Brown (BOSTON GLOBE, 5/27).  The Patriots
     have 15 years to pay back the loan, and if the team is sold,
     Patriots Owner Robert Kraft "must repay the balance of the
     loan himself" (BOSTON GLOBE, 5/27).  Broncos Owner Pat
     Bowlen: "It's not free money.  But it's good news to the
     extent that, rather than having to borrow, say, $150 million
     from the bank, we can borrow $100 million from the bank and
     about $45 million from the league.  And the league makes it
     available at a significantly better interest rate.  It will
     save us some interest cost" (ROCKY MOUNTAIN NEWS, 5/27).
          EUROPEAN VACATION: In San Diego, Jerry Magee reports
     that the NFL has decided to continue its NFL Europe league
     for four more years.  Although the league is losing about
     $10M a year, Tagliabue said that American football "no
     longer is viewed as a novelty" in Europe and "a genuine fan
     base is developing" (SAN DIEGO UNION-TRIBUNE, 5/27).        

Return to top
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug