The NFL "plans to borrow" at least $325M to help the
Eagles, Broncos and Patriots build new stadiums, according
to sources of Kaplan & Lombardo in a front-page piece in the
SPORTSBUSINESS JOURNAL. The $325M loan is in the commercial
paper market, a form of borrowing available only to
companies that financial institutions "consider to be highly
creditworthy." Kaplan & Lombardo write that by borrowing
through the commercial paper market, the NFL "can secure
highly advantageous interest rates." The league, which
wouldn't comment on the loan, also expects to borrow "even
more money later to meet the demand of new construction" for
new or renovated stadiums planned for teams such as the
Packers, Steelers and Bears. Kaplan & Lombardo added that
the loan "marks the first time a league has put its credit
behind teams' construction projects," and the borrowing "is
rooted in the 'G-3' resolution that was approved" by owners
to ease the financial strain on individual teams that need
to finance new stadiums (SPORTSBUSINESS JOURNAL, 5/22).
AGENT FEES ON THE RISE: CBS SportsLine's Len
Pasquarelli reported that the NFLPA informed player agents
that the annual fee for certification will increase from
$1,000 to $1,250, and for agents with more than ten clients,
the cost will rise to $1,700. The NFLPA "cited the rising
costs of investigating unscrupulous agents and of beginning
the process of certifying financial planners as the reasons
for the hike." Player agent Jack Wirth, on the fee
increase: "To tell the truth, I'd pay $5,000 if it would
mean getting rid of some of these hangers-on. Most guys can
come up with the $1,200. But $5,000, that would be another
story." In other news, Pasquarelli reported the NFLPA
"might be close to settling" the IRS' ongoing investigation
of its Players Inc subsidiary. Pasquarelli: "Rumor has it
that the price tag, for taxes owed, penalties and interest,
will be a fairly huge one" (CBS SportsLine, 5/20).
EXTRA POINTS: NFL owners meetings will begin tomorrow
in Baltimore, and USA TODAY's Gordon Forbes writes that the
NFL and NFLPA are expected to discuss extending the CBA for
three years beyond 2004 (USA TODAY, 5/22)....In N.Y., Mike
Freeman wrote on the pending trial of Ravens LB Ray Lewis:
"The Lewis trial is probably one of the most discussed
topics in the N.F.L. right now" (N.Y. TIMES, 5/21).
