Greener Pastures: McNair Profits In Year One With Texans

Texans Earn Profit In Inaugural Season; Eye 8-12% Profit In Year Two

Texans Owner Bob McNair said that his expansion team "turned a profit in its first year and will bring in an 8-12[%] return this season," according to BLOOMBERG NEWS' Curtis Eichelberger. McNair, on whether sports businesses can be successful: "The answer is yes. But you have to apply the same business principles that gained you success in other endeavors." McNair, who paid a record $700M for the Texans, said that he will "pay off the remaining $325[M] in team debt ahead of schedule in seven or eight years." The Texans borrowed $70M from J.P. Morgan Chase and "got a $30[M] credit facility in January to make the next-to-last payment on their expansion fee." More McNair: "I'm not a believer in doing all this work in anticipation of getting some enhanced value when I sell the franchise in 10 or 15 or 20 years. I don't know what it's going to be worth in 15 or 20 years." McNair added, "I'm not a fan, I'm a sportsman. A fan goes around and worships the athletes and all that. The athletes are my employees. When I start worshipping them, that's when we'll go broke" (BLOOMBERG NEWS, 8/4).