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Giants take hit from credit crunch


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http://cbs.sportsline.com/nfl/story/10744621

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The Giants are the latest victims of the big money madness that's slowing financing down to a near standstill across the economic landscape.

 

For professional sports, the credit freeze is stalling and threatening new stadiums and arenas that fans are eagerly awaiting.

 

The problem is that team owners have increasingly been tapping the same money pools that towns and cities traditionally use to build roads and other public projects.

 

Analysts said that open-auction borrowing for the public projects - including venues for professional baseball, basketball and football - has collapsed from the lack of available funds, as well as the reluctance of well-heeled investors to lend money - except at very high prices.

 

In the case of the two families that own the Giants - the Mara and Tisch clans - their Super Bowl champs are finding closed doors as they try to raise money at reasonable rates to finish the stadium by 2011 as planned.

 

The Giants are being floored by whopping interest rates of up to 22 percent for construction money, which is certain to show up as higher ticket and hot dog prices.

 

22%? That is an outrageous interest rate but I understand why the big investors are investing elsewhere with dollar dropping. They ought to try selling bonds to their fans as souvenirs at lower rates although with high enough to recover increases in ticket costs coming soon. When bonds are paid off they can be marked as paid and hung on walls.

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And, of course, the Giants and Jets will be more than happy to pass those costs along. $100/ticket for most lower-bowl seats this year, more than that in the mezzanine. And enjoy those PSLs, Meadowswamp faithful...

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