Quote:
Originally Posted by Locke
When you own a profitable and highly valuable asset you can borrow against it on very favorable terms in order to invest more.
|
You can borrow, but the operating cash flow had better be enough to service that debt. What you can't do is borrow against the speculative value of the asset IF it were put on a highly illiquid market.
Which means, given the low and variable operating income of the Flames, the amount the owners can borrow against it is much less than Forbes' WAG about the market value in case of a franchise sale.