The NFL "plans to increase dramatically the amount of
money it can lend" to its teams, according to Daniel Kaplan
of the SPORTSBUSINESS JOURNAL. The NFL's lead bank,
NationsBank, is "developing a league credit facility of $600
million to $800 million, a huge jump from the $340 million
now available." Kaplan: "Faced with surging signing bonuses
and a rising salary cap, many teams will need to borrow to
remain competitive." The league has increased the team debt
limit from $55M to $100M, and the "larger credit facility is
the NFL's latest effort to help clubs manage surging
expenses." The new credit facility will be parceled into
two parts: one $400M segment will "replicate" MLB's new
credit facility, "which securitized media revenues." The
league "is still considering how to structure the facility's
second part." Depending on team demand, the league plans to
sell another $200M to $400M. Kaplan adds that "only eight
teams participate in the current facility, but slightly less
than half the league's 30 teams are expected to take part in
the new one." The league "hopes to complete the facility
by the end of September" (SPORTSBUSINESS JOURNAL, 8/31).
