26CornerBlitz Posted September 16, 2014 Posted September 16, 2014 @JasonLaCanfora, new #Bills owner Terry Pegula is in process of divesting himself from sports agency that reps NFL players.
Doc Posted September 16, 2014 Posted September 16, 2014 Word is that Pegula will build a stadium with a retractable roof downtown within the next 5-7 years. Given the cost of construction, would it make sense for him to start/buy a construction company and have them build it?
Canadian Bills Fan Posted September 16, 2014 Posted September 16, 2014 Word is that Pegula will build a stadium with a retractable roof downtown within the next 5-7 years. Given the cost of construction, would it make sense for him to start/buy a construction company and have them build it? Where are you getting this info from? CBF
Doc Posted September 16, 2014 Posted September 16, 2014 Where are you getting this info from? I've heard it from several different people who I trust. But even if it doesn't come to pass in the area or timeframe, I've always wondered about the feasibility of an owner starting/acquiring his own construction company to build a new stadium for him, and whether it would save tons of money. Seems like it would be something worth looking into.
LabattBlue Posted September 16, 2014 Posted September 16, 2014 Word is that Pegula will build a stadium with a retractable roof downtown within the next 5-7 years. Given the cost of construction, would it make sense for him to start/buy a construction company and have them build it? I continue to be skeptical that Pegula will use his $$$ to build a stadium that for all practical purposes will be a white elephant outside of 10-20 days a year. There is no way building and owning a stadium will be a money maker here in WNY.
Kirby Jackson Posted September 16, 2014 Posted September 16, 2014 I continue to be skeptical that Pegula will use his $$$ to build a stadium that for all practical purposes will be a white elephant outside of 10-20 days a year. There is no way building and owning a stadium will be a money maker here in WNY. If I had to venture a guess the stadium will be funded privately and publicly. As it has unfolded a little I would say $550M privately and $300m publicly.
GA BILLS FAN Posted September 16, 2014 Posted September 16, 2014 (edited) If I had to venture a guess the stadium will be funded privately and publicly. As it has unfolded a little I would say $550M privately and $300m publicly. Sounds about right --- the best thing about Pegs being new owner is there is a chance for the collective community to inhale and exhale and take a moment and really debate what the next move regarding a stadium should be and when. I'm confident Pegs will be willing to put his own money into the venture, similar to what other owners have done. In addition, I suspect Delaware North would put in a chunk to secure concessions and another company for naming rights. There are many questions to be answered as part of the discussion such as type of stadium (open air, retractable, closed), whether it's more than just a football stadium (i.e. convention center, other entertainment), location, impact on cost to fans (i.e. PSL's etc). It will surely be a balancing act of several compromises by all parties to make it happen. I predict it will take several years to work out and won't be a quick fix where we see ground breaking in 2015. Edited September 16, 2014 by TXBILLSFAN
PromoTheRobot Posted September 16, 2014 Posted September 16, 2014 (edited) I continue to be skeptical that Pegula will use his $$$ to build a stadium that for all practical purposes will be a white elephant outside of 10-20 days a year. There is no way building and owning a stadium will be a money maker here in WNY. I think you are wrong about that. Harborcenter is going to make money and he paid for it himself. Imagine a Patriot Place style development around a new stadium with a hotel and convention center...all owned by TP. You think Buffalo isn't an attraction? He's making it one. I do think TP will pay the lion's share for a stadium, I also think Jacobs will chip in as well to secure concessions for the entire development. The state will kick in the land and infrastructure. The NFL stadium fund, stadium naming rights and some PSL revenue will round it out. There will be a new stadium, maybe by year 8 of the lease. Make no mistake, there is more than just buying a sports team going on here. Pegula earned himself a lot of good will from all levels of government. Don't underestimate that. Edited September 16, 2014 by PromoTheRobot
YoloinOhio Posted September 16, 2014 Posted September 16, 2014 @ChrisTrapasso: POWER MOVE CITY. RT @BuffRumblings: The Pegulas are going to buy the #Bills in cash. Because, why not? http://t.co/IRqIaqBZ1A
GA BILLS FAN Posted September 16, 2014 Posted September 16, 2014 @ChrisTrapasso: POWER MOVE CITY. RT @BuffRumblings: The Pegulas are going to buy the #Bills in cash. Because, why not? http://t.co/IRqIaqBZ1A Several dump trucks should work.
26CornerBlitz Posted September 16, 2014 Posted September 16, 2014 @ChrisTrapasso: POWER MOVE CITY. RT @BuffRumblings: The Pegulas are going to buy the #Bills in cash. Because, why not? http://t.co/IRqIaqBZ1A @AdamBenigni Formal NFL approval on #Bills sale begins tomorrow with finance committee in NYC. No issues expected. Told expect Pegulas to be there. NFL finance committee expected to approve sale to Pegulas. Told it is very likely a wire transfer of $1.4-billion @wgrz Once NFL finance committee approves deal, final NFL owner approval to come at Oct 7th and 8th league meetings. @wgrz
The Wiz Posted September 16, 2014 Posted September 16, 2014 Several dump trucks should work. Or he could just write a personal check.
Augie Posted September 16, 2014 Posted September 16, 2014 (edited) People said Walt Disney was nuts for buying a gazillion acres of swamp land in the middle of blistering hot central Florida. That worked out OK. Smart guys see things the others don't. I think it would be an all time act of genius if one guy could rebuild a city and region where generations of politicians did nothing but tear it down. And doing it with your own construction company sounds like the kind of thing a genius just might do. Who knows? What would the profit be on a thing like that? That number has a lot of commas in it. Buy a going concern (for the management team as much as anything) and you could spin it off in a few years if that suited you. He may say it's not his expertise, but he could buy expertise. Edited September 17, 2014 by Augie
PromoTheRobot Posted September 17, 2014 Posted September 17, 2014 People said Walt Disney was nuts for buying a gazillion acres of swamp land in the middle of blistering hot central Florida. That worked out OK. Smart guys see things the others don't. I think it would be an all time act of genius if one guy could rebuild a city and region where generations of politicians did nothing but tear it down. And doing it with your own construction company sounds like the kind of thing a genius just might do. Who knows? What would the profit be on a thing like that? That number has a lot of commas in it. But a going concern (for the management team as much as anything) and you could spin it off in a few years if that suited you. He may say it's not his expertise, but he could but expertise. You can look at Buffalo like a fixer-upper house. A lot of people took it for a lost cause. Pegula thinks he can make it nice for a few bucks. But he keeps adding stuff and making it nicer. Pretty soon you have something people want to live in.
Doc Posted September 17, 2014 Posted September 17, 2014 People said Walt Disney was nuts for buying a gazillion acres of swamp land in the middle of blistering hot central Florida. That worked out OK. Smart guys see things the others don't. I think it would be an all time act of genius if one guy could rebuild a city and region where generations of politicians did nothing but tear it down. And doing it with your own construction company sounds like the kind of thing a genius just might do. Who knows? What would the profit be on a thing like that? That number has a lot of commas in it. Buy a going concern (for the management team as much as anything) and you could spin it off in a few years if that suited you. He may say it's not his expertise, but he could buy expertise. Yep. He could buy a construction company, have them build the stadium at cost, which would save him tons of money, and then sell the construction company for a premium billing it as the one that built the Buffalo Bills' new stadium.
Augie Posted September 17, 2014 Posted September 17, 2014 Yep. He could buy a construction company, have them build the stadium at cost, which would save him tons of money, and then sell the construction company for a premium billing it as the one that built the Buffalo Bills' new stadium. There are just so many advantages to being a billionaire. Advantages I will never know.... They say the first billon is the hardest. I am only about a billion short of breaking through to the next level.
3putt Posted September 17, 2014 Posted September 17, 2014 Paying cash is puzzling. With interest rates so low locking in a portion of the purchase price with cheap debt adds to the leverage of his investment. Maybe he is in a hurry to break ground.
The Wiz Posted September 17, 2014 Posted September 17, 2014 Paying cash is puzzling. With interest rates so low locking in a portion of the purchase price with cheap debt adds to the leverage of his investment. Maybe he is in a hurry to break ground. I'll just throw out random numbers here but say an interest rate of 5% over 10 years, he would be paying an additional 1.4 million. Doubt anyone dropping 1.4b wants any extra cash wasted. Paying cash is puzzling. With interest rates so low locking in a portion of the purchase price with cheap debt adds to the leverage of his investment. Maybe he is in a hurry to break ground. I'll just throw out random numbers here but say an interest rate of 5% over 10 years, he would be paying an additional 1.4 million. Doubt anyone dropping 1.4b wants any extra cash wasted.
Kelly the Dog Posted September 17, 2014 Posted September 17, 2014 I'll just throw out random numbers here but say an interest rate of 5% over 10 years, he would be paying an additional 1.4 million. Doubt anyone dropping 1.4b wants any extra cash wasted. Well, he did pay 300m more than he had to for the team.
The Wiz Posted September 17, 2014 Posted September 17, 2014 Well, he did pay 300m more than he had to for the team. I get that but what do you think the terms on a loan would be for 1.4 billion?
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