$9 billion in debt

[iceberg]

I think I see a article similar to this that said that JJ was responsible for about 700+ million of the debt.

Let's assume that is true and JJ owes 700 mil. He gets a naming rights deal of 300 mil. Now he could put that 300 mil towards the 700 mil, but that is not a good use of his liquid cash. He can use the liquid cash to fun other projects so he can make more money. So the debt he is carrying is not bad debt. I would guess that many owners are doing the same thing with their outstanding debts.

that makes sense. just wondering where it was all coming from.

now to figure out "IN" and "OF" debt. : )

 

[CrazyCowboy]

I don't believe it.......

Show me the books!

 

[ABQCOWBOY]

maybe they have to pay their rookie managers who've never managed anything in the business world but got A's in college.

Maybe. That's as plossible as any reason. Heck, it's probably more so.

 

[THUMPER]

I would imagine that all of the stadium loans (to teams), all of the contracts for players/coaches salaries, and anything else that can be added up would be included into that $9 billion figure.

In other words, if the Cowboys just signed Romo to a $50 M deal over 6 years (I don't remember what it actually was, this is just an example) then the Cowboys have $60 M in debt. Not that they are behind by that much but they are committed to that much debt.

The same is true of stadium loans where they are either building a stadium (like we are) or leasing a stadium. If a team has a 10-year lease on a stadium for $25 M per year then they have $250 M of debt. Just like if you take out a mortgage on a house for $200K, you now have $200K of debt but you are not IN debt $200K.

I believe that is where the figure came from.

 

[burmafrd]

Much ado about NOTHING. NOthing to see here. move along.
These are not the droids you are looking for

 

[Velvet Jones]

I am sure when Jerry "funds" a majority of the cash for a new stadium, it is the banks money he is funding. Even if you have the liquid cash, which i doubt he has, you don't float that. You pay it over time. With the rash of new stadiums going up every other year, it doesn't matter what they are raking in because extra is not going to lessen their debt.

 

[dozin_theknick]

The NFL is NOT $9 billion IN debt, the NFL has $9 billion OF debt. There's a huge difference.

Exactly. If you figure the average franchise is worth $1 billion (just a guess), then the nfl has a net worth of $23 billion.

 

[aikemirv]

that makes sense. just wondering where it was all coming from.

now to figure out "IN" and "OF" debt. : )

Assets - Liabilities + Owners Equity

30 Billion (assets) - 9 Billion(Liabilities) = 21 Billion(owners Equity)....... 9 Billion of Debt

$0 (Assets)- 9 Billion( Liabilities) = -9 Billion(Owners Equity).......... 9 Billion in Debt


The figure of 9 Billion in and of itself is just a number.

 

[Yakuza Rich]

The NFL is NOT $9 billion IN debt, the NFL has $9 billion OF debt. There's a huge difference.

Thank you. Why this goes above the heads of so many in the media is beyond me. You would think they would know how debt works. It's like saying that somebody who makes $100,000 per year and took out a mortgage for a $300,000 house is in debt to the tune of $300K and that's a bad thing.





YAKUZA

 

[aikemirv]

Thank you. Why this goes above the heads of so many in the media is beyond me. You would think they would know how debt works. It's like saying that somebody who makes $100,000 per year and took out a mortgage for a $300,000 house is in debt to the tune of $300K and that's a bad thing.





YAKUZA

It is if your house is only worth 240K.

I think that is rather prevalent these days but I regress.

 

[AdamJT13]

Exactly. If you figure the average franchise is worth $1 billion (just a guess), then the nfl has a net worth of $23 billion.

According to Forbes' values last year, the average is $957 million (pretty good guess). So the NFL's net worth is about $21.6 billion.

 

[iceberg]

Assets - Liabilities + Owners Equity

30 Billion (assets) - 9 Billion(Liabilities) = 21 Billion(owners Equity)....... 9 Billion of Debt

$0 (Assets)- 9 Billion( Liabilities) = -9 Billion(Owners Equity).......... 9 Billion in Debt

The figure of 9 Billion in and of itself is just a number.

i was being mildly sarcastic but i do appreciate the info. just seemed interesting to me and i was curious about how they got at that number.

 

[HoosierCowboy]

I'd trade my thousands of debt for the NFL's billions in a minute.

 

[iceberg]

I'd trade my thousands of debt for the NFL's billions in a minute.

i'd sell my credit cards to anyone wanting to take over payments.

 

[Yakuza Rich]

It is if your house is only worth 240K.

I think that is rather prevalent these days but I regress.

Yeah, but you're still not in $300,000 worth of debt. And at the tune of making $100K a year, you should be fine paying off a $300K mortgage, unless you went with an ARM and are getting hammered (should still be able to pay it). And most likely the property will will be worth well more than $300K in future, just have to wait for the market to turn around.

So yeah, there are teams probably getting hurt by the rates, but you could say that about anybody, even Bill Gates. But it's not like the NFL or Bill Gates are remotely in trouble.





YAKUZA

 

[ABQCOWBOY]

i'd sell my credit cards to anyone wanting to take over payments.

I'll give ya Coakley and PacMan.

 

[Yakuza Rich]

I'd trade my thousands of debt for the NFL's billions in a minute.

Do you make the billions of dolllars that the NFL does? I'd trade my situation of making the money they make and having the assets they have with the liabilities they have over the amount of money and assets I have and my liabliites.

I hate to get pedantic, but I've heard people say this in other threads about the NFL and it's a bit of a pet peeve of mine.





YAKUZA

 

[Skinsmaniac]

I am sure when Jerry "funds" a majority of the cash for a new stadium, it is the banks money he is funding. Even if you have the liquid cash, which i doubt he has, you don't float that. You pay it over time. With the rash of new stadiums going up every other year, it doesn't matter what they are raking in because extra is not going to lessen their debt.

This is exactly right. Owners borrow to build stadiums and then use the stadium revenues to pay off the loans. As long as the revenues exceed the interest payments, then this kind of debt will make owners money and not be a bad thing.

I doubt that they are using future salaries as part of the calculation because as we all know the salaries aren't guaranteed, so Jerry isn't required to pay Romo his millions next year.

One other note, the Vikings had to borrow money to pay Jared Allen's signing bonus, so some teams don't even have the cash to cover operating expenses.

 

[reddyuta]

Same thing here. I mean there are 32 NFL teams after all, and if one fourth of them had new stadiums with todays dollar figures, 9 billion is not that much.

Also, I am not sure that the NFL is the most popular sport in the world and makes the most in TV and attendance revenues. While we do have other sports, basketball, baseball, and hockey as the other 3 major sports, most of the world only has soccer at the top of their lists.

An NFL team can play up to 19 (not including preseason) games a season. Soccer teams easily play around 50 games.

my friend-let me enlighten you.

soccer is watched by most people on the planet(it is a marginal sport in US)

cricket is watched by over 2 billion people in the world-mostly by former colonies of the british empire (again-completely ignored in the us)

then comes baseball and basketball .

As far as the world is concerned NFL is not on the radar.
The indian cricket association-one of the richest in the world raised 2 Billion dollars in 3 months to create a new league.

 

[DWhite Fan]

I just finished the spring semester at the local junior college. The last topic my small business management class covered was the comparison of two companies in the same industry. I chose to compare McDonald's to Burger King.

McDonald's, being an international company, is a much larger corporation than BK. From its 2007 financial statements, McD's had current assets of $3.5 billion and current liabilities (or debts if you prefer) of $4.5 billion. Even though it had $1 billion more debt than assets (more if you consider total assets and total liabilities and stockholder's equity) for the year, McD's also had $22.7 billion in total revenues. It is safe to say that McD's had a fine year even with being $1 billion in debt. Large corporations use debt for leverage.
I am sure that the NFL is going to be just fine...