Nostradamus Posted November 28, 2010 Posted November 28, 2010 Relax, ladies. I've given him props and had a good back and forth with him in his thread on this topic. However, I would venture that not many billionaires would entrust their wealth to a man 3 years out of the dorms. It doesn't happen. I doubt you would either. Doesn't mean he doens't have interesting ideas. Wisdom comes not with age, but experience, "Nostradamus". That was the point of my gentle dig. Fair enough. But I'm not sure how supposed 'billionaires' are going to be called upon to entrust the innovator of the Bills bond concept with their wealth. The bonds will be secured, and I'm sure a legitimate financial institution would be involved in the transaction of funds. I don't think this guy is planning on storing the proceeds of the bonds in his basement.
Rockinon Posted November 28, 2010 Posted November 28, 2010 I have seen bonds work out nicely on a much smaller scale as a member of an AMVETS Post in northern New York. Our post received a letter from another post in downstate New York. They had purchased property to build their new post but didn't have the funds to complete th project. Through fundraisers and such, they were able get sewer, water and electrical hook ups paid for but still lacked funds to erect a building. They offered bonds that would be paid back with interest and asked for help from fellow AMVETS across New York State. Our post purchased 2 $1000 bonds almost 2 years and the post is finally erecting their building! We expect that once they get their liquor license and start selling pulltab tickets, they'll be able to turn things around. Our local post is one of the smallest in the state and yet we are making a healthy profit. If we can do it so can they. This same concept can absolutely work for the Bills and there is nothing that says that the money is conditional(Keep the Bills in Buffalo).
Mr. WEO Posted November 28, 2010 Posted November 28, 2010 I have seen bonds work out nicely on a much smaller scale as a member of an AMVETS Post in northern New York. Our post received a letter from another post in downstate New York. They had purchased property to build their new post but didn't have the funds to complete th project. Through fundraisers and such, they were able get sewer, water and electrical hook ups paid for but still lacked funds to erect a building. They offered bonds that would be paid back with interest and asked for help from fellow AMVETS across New York State. Our post purchased 2 $1000 bonds almost 2 years and the post is finally erecting their building! We expect that once they get their liquor license and start selling pulltab tickets, they'll be able to turn things around. Our local post is one of the smallest in the state and yet we are making a healthy profit. If we can do it so can they. This same concept can absolutely work for the Bills and there is nothing that says that the money is conditional(Keep the Bills in Buffalo). The Bills Bonds guy's plan included this.
BillnutinHouston Posted November 28, 2010 Posted November 28, 2010 Personally, I love the guy's initiative. Putting his Finance degree (or whatever) to good use and actually trying to make a difference with it. And when you read the guy's plan it is impressive conceptually.
KD in CA Posted November 28, 2010 Posted November 28, 2010 The Ralph is arguably not an "NFL ready" stadium by today's standards. Somewhere along the line the NFL owners will exert pressure to replace it with a stadium that can generate more revenue. IMO this is the single largest stone tied around the neck of small market teams. Assuming that the somehow the financing for a stadium that would cost around a billion is secured it is hard to imagine how it is made economically viable in WNY. Good point. They want to replace the Georgia Dome and it's less than 20 years old. 'The Ralph' is one of the oldest and least impressive stadiums in the league. It does not fit the current NFL model so any new owner would probably need to build a new stadium. Who's gonna pay for that?
Dr. Fong Posted November 28, 2010 Posted November 28, 2010 All loans are other people's money. Yeah, I guess I didn't elaborate on my point well. They're getting a loan at a reduced interest rate from the community and then will probably turn around and screw the community in the end.
Mr. WEO Posted November 28, 2010 Posted November 28, 2010 Yeah, I guess I didn't elaborate on my point well. They're getting a loan at a reduced interest rate from the community and then will probably turn around and screw the community in the end. I don't think $100 million is going to make a deal. The new owner will need to borrow far more than that. He's not going to agree to a loan (bonds) that stipulates that he can't move the team. And I believe that was the whole point of this kid's plan--to tie financing the team to keeping it in Buffalo.
Ramius Posted November 28, 2010 Posted November 28, 2010 No way in hell the NFL owners would approve the sale under those conditions.
birdog1960 Posted November 28, 2010 Posted November 28, 2010 Personally, I love the guy's initiative. Putting his Finance degree (or whatever) to good use and actually trying to make a difference with it. And when you read the guy's plan it is impressive conceptually. i'd buy some to keep the bills where they belong and proudly hold an interest in the team
BillnutinHouston Posted November 28, 2010 Posted November 28, 2010 'The Ralph' is one of the oldest and least impressive stadiums in the league. Can someone clarify specifically how Ralph is a "least impressive stadium" and what that means in real terms? Please tell me, how does the Ralph (not the Buffalo market) limit the franchise as far as revenue potential? The Ralph is functional, provides (in my opinion) more than enough club seats, boxes and amenities FOR THE BUFFALO MARKET, allows for good sightlines from everywhere, what am I missing? How would a new stadium IN BUFFALO, with all of the debt service attached to it, and with BUFFALO'S limited spending power, afford a new owner any advantages over the Ralph?
Bills Bonds Posted November 29, 2010 Posted November 29, 2010 Thanks for the support and for the critiques. As some suggested, I posted the idea on this message board a couple weeks ago (see the link below). Some of the issues mentioned on this thread were discussed on that thread, so feel free to have a read. The initial interest on the message board helped to create buzz for the idea, so thanks to you all for your interest. http://forums.twobillsdrive.com/topic/122813-bills-bonds-an-idea-for-helping-to-keep-the-bills-in-buffalo/ A few have commented that a provision against moving the team may not be acceptable to a new ownership group or the NFL. That’s a fair comment. Here’s a hypothetical alternative to a provision against moving the team: Suppose the bonds pay a subsidized interest rate of say 3% as long as the Bills stay in Buffalo. But the bonds accrue interest at a market interest rate of say 6% to 10%. This market rate of interest does not have to be paid unless the team is in fact moved. Over time a financial barrier of interest would accrue that would disincentivize an owner from moving the team. Thanks again and I will check in here with updates periodically.
BuffaloWest Posted November 29, 2010 Posted November 29, 2010 Why don't the Seneca Indians just buy the Bills they have bags of Tax free cash, move the Bills to Silver Creek build a stadium and collect all that revenue tax free for years ! Why don't the Seneca Indians just buy the Bills they have bags of Tax free cash, move the Bills to Silver Creek build a stadium and collect all that revenue tax free for years ! If you think the NFL owners would allow an Indian Tribe to own even a 1% share of a team your high. They wont even let them advertise in the broadcast. No Indian tribe/casino etc will ever have any ownership in an NFL franchise ever.
HopsGuy Posted December 1, 2010 Posted December 1, 2010 Thanks for the support and for the critiques. As some suggested, I posted the idea on this message board a couple weeks ago (see the link below). Some of the issues mentioned on this thread were discussed on that thread, so feel free to have a read. The initial interest on the message board helped to create buzz for the idea, so thanks to you all for your interest. http://forums.twobillsdrive.com/topic/122813-bills-bonds-an-idea-for-helping-to-keep-the-bills-in-buffalo/ A few have commented that a provision against moving the team may not be acceptable to a new ownership group or the NFL. That’s a fair comment. Here’s a hypothetical alternative to a provision against moving the team: Suppose the bonds pay a subsidized interest rate of say 3% as long as the Bills stay in Buffalo. But the bonds accrue interest at a market interest rate of say 6% to 10%. This market rate of interest does not have to be paid unless the team is in fact moved. Over time a financial barrier of interest would accrue that would disincentivize an owner from moving the team. Thanks again and I will check in here with updates periodically. I applaud you for "thinking outside the box" (an overused phrase that actually applies here). This story was picked up on Dealbreaker. The Dow was up 250 today, but this story still managed to make it to one of the best market blogs out there. As a caveat, the post was made at 4:20 PM today so we might all be high to think this is possible. Anyway, good on. If it goes through, you should give away t-shirts that say "Certified Bills Bondholder" with each $250 bond. I'm pretty sure you could get more than 1k here in Charlotte alone. This place is lousy with WNY transplants.
aristocrat Posted December 1, 2010 Posted December 1, 2010 i think financing a stadium would be the most attractive deal to a buyer of the bills. The arizona cardinals stadium cost about 450 million and that has a dome and has hosted a superbowl and other bowl games. its about 3 years old so the numbers should be very similar. if bills fans got behind a stadium that could provide an owner with greater revenue and allow them to stay in the area.
Jim in Anchorage Posted December 1, 2010 Posted December 1, 2010 http://www.buffalonews.com/city/article267205.ece "A 25-year-old Washington, D.C., investment banker whose family roots run deeply through Buffalo soil has an interesting idea -- a financial plan he thinks could help keep the Bills here over the long term. Under Stevens Brady's plan, fans would loan money to the next owner of the Buffalo Bills by purchasing low-interest bonds -- called Bills Bonds -- that would reduce a new owner's often-choking interest payments..............." Wait- isn't this the same kid who set a "new high mark for WNY home prices" buying two homes in Hamburg for $millions then defaulting on the morgages?
Rockinon Posted December 1, 2010 Posted December 1, 2010 No way in hell the NFL owners would approve the sale under those conditions. They would if they were tied to Jim Kelley's supposed group.
Mr. WEO Posted December 1, 2010 Posted December 1, 2010 Thanks for the support and for the critiques. As some suggested, I posted the idea on this message board a couple weeks ago (see the link below). Some of the issues mentioned on this thread were discussed on that thread, so feel free to have a read. The initial interest on the message board helped to create buzz for the idea, so thanks to you all for your interest. http://forums.twobillsdrive.com/topic/122813-bills-bonds-an-idea-for-helping-to-keep-the-bills-in-buffalo/ A few have commented that a provision against moving the team may not be acceptable to a new ownership group or the NFL. That’s a fair comment. Here’s a hypothetical alternative to a provision against moving the team: Suppose the bonds pay a subsidized interest rate of say 3% as long as the Bills stay in Buffalo. But the bonds accrue interest at a market interest rate of say 6% to 10%. This market rate of interest does not have to be paid unless the team is in fact moved. Over time a financial barrier of interest would accrue that would disincentivize an owner from moving the team. Thanks again and I will check in here with updates periodically. Given the annual appreciation of the team's value, and extra couple of points on that $100 million, compared to what he's already financing, may not serve as much of a disincentive. If he's losing money, he's going to bail out to the highest bidder. Alos, how long would it take to raise the $100 million? Months? A year? The new owner will need the money before that time. They would if they were tied to Jim Kelley's supposed group. No they won't--even it was Jim KELLY'S supposed group.
Austin_Bills_Fan Posted December 1, 2010 Posted December 1, 2010 i'd buy some to keep the bills where they belong and proudly hold an interest in the team Problem is that you would not own an interest under this scenario. By buying Bills bonds you would essentially be loaning money to the new ownership with the hope that they would repay you some day. Too bad the NFL wouldn't allow an exception to the rules so that the Bills can issue stock like the Packers.
meazza Posted December 2, 2010 Posted December 2, 2010 My link I would definitely buy a few thousand worth of bonds.
Chandemonium Posted December 2, 2010 Posted December 2, 2010 the guy who came up with this idea has an account here and posted about it a couple weeks ago.
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