Quote:
Originally Posted by Bring_Back_Shantz
Sure they are probably $9 billion in debt, but look at the revenues of the league and the value of the franchises. That works out to about $300 million/team.
Each franchise is worth somewhere around $1 billion, so the 9 billion in debt isn't that much compared to the value of the teams themselves.
Or compare it to the revenue of the league.
They take in over a billion/year just on TV.
Add to that the tickets, merchandise, and other revenue streams, and they are probaly in better shape than a lot of businesses.
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I think you're really overestimating the value of an NFL franshise. $1B each? There are probably a couple worth that, and probably more worth less than half that.
And $1B on TV rights divided among all the teams who have shareholders as well as interest in debts to pay isnt as nice as it may sound.
Quote:
Originally Posted by Flames in 07
I'm not sure this makes any sense at all. The NFL doesn't own all these stadiums and even if they did, they have tons of assets (ie the stadiums) to place against this debt. Knowing someone or somethings debt in isolation of understanding its assets is a useless number that you can draw any conclusions on?
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I'm confused about this post.
If they dont own the stadiums they cannot put them up as assets to borrow money against the equity.
Aside from physical buildings which they dont have, the biggest assets any team has is Franchise rights (including merchandising) and player contracts (if they're any good).