Cowboys Offer Up Naming Rights Proceeds To Pay Back Bonds
The Cowboys have pledged the proceeds from the eventual sale of naming rights
for their new stadium “to secure $147.8[M] in bonds” that will help pay the team’s
portion of construction costs, according to Andrea Ahles of the FT. WORTH STAR-TELEGRAM.
The team “expects to host two college football games, including a bowl game, and
other events that will help generate enough revenue from those two fees to make
the payments.” But stadium financing documents state that if that “doesn’t happen,
the Cowboys have agreed to use naming-rights revenue and sponsorship fees to make
the biannual payments” ranging from $600,000-20.2M. As part of the lease deal,
the city will receive 5% of any naming-rights agreement up to $500,000 a year.
The team will repay the debt using funds generated by a 10% admission tax and
a $3 parking fee, which bond documents state will generate $6.17M in the first
year. The team said that it will need other stadium events to cover the $9.04M
bond payment due January 1, 2010 (FT.
WORTH STAR-TELEGRAM, 8/10).
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