generaLee83 Posted January 1, 2007 Author Posted January 1, 2007 Sorry this is long, but it's a little complicated... Happy New Year... CD No need to apologize Casey D, most informative post I've read here in months, thank you.
Casey D Posted January 1, 2007 Posted January 1, 2007 No need to apologize Casey D, most informative post I've read here in months, thank you. You're most welcome...CD
obie_wan Posted January 1, 2007 Posted January 1, 2007 Now the Bills will be OK until Ralph dies, but then we will be screwed unless new revenue sharing has been put into place. The reason is the new Bills owners will have to pay say $700 M for the team. They will have to borrow money to finance some of this-- let's say half or $350 M. If they have to pay 10 % interest on this annually--that's $35 M more each year in costs for the new owner that Ralph does not have. That makes the Bills a non-viable operation in Buffalo, without revenue sharing. So that's what all this is about. I believe that ultimately there will be more revenue sharing that will keep our Bills safe. But until we get it, Ralphie will B word. And it's not because he is whiny, it's because of the economics I just laid out. Sorry this is long, but it's a little complicated... Happy New Year... CD The situation is even worse for a new owner. The percent or the purchase price to be financed will be closer to 80%. In addition, the new owner will have to repay the principal of that note out of cash flow, although those payments won;t show up in the P&L. On a 40 year note, that is $140 mil per year on top of the interest payments. Further complicating things, is that a new stadium will state of the art luxury boxes won;t help because the area's economy can't buy the boxes. Without additional cash from revenue sharing, there is no way a new owner can keep the team in Buffalo.
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