NFL: $9 Billion in Debts (However "In the Black" Net)

[spacecrime]

Re: NFL: $9 Billion in Debt

And if they get laid off their house which has lost value in a down RE market that had overheated beyond reason just a few short years ago is worth less than they owe on it and that is why forclosures are skyrocketing.

Double b.s.

If someone bought a house years ago, even if they financed it at 100% at the time, it is worth a LOT more than they paid for it. Also, the value of their house is not tied to their working or not working.

Foreclosures are not skyrocketing, unless you definition of skyrocketing is "about the same as they have been in recent years."

 

[Deus Irae]

Re: NFL: $9 Billion in Debt

Double b.s.

If someone bought a house years ago, even if they financed it at 100% at the time, it is worth a LOT more than they paid for it. Also, the value of their house is not tied to their working or not working.

Foreclosures are not skyrocketing, unless you definition of skyrocketing is "about the same as they have been in recent years."

Hmmmm....

Home foreclosures soared to an all-time high in the final three months of 2007 and probably will keep rising, evidence of homeowners' suffering and the economic danger from the meltdown.

http://biz.yahoo.com/ap/080306/home_foreclosures.html

Some other interesting tidbits:

Homeowners' percentage of equity slipped to 49.6 percent in the second quarter of 2007 and reached 47.9 percent in the fourth quarter. It was the first time that homeowners' debt on their houses exceeds their equity since the Fed started tracking the data in 1945.

California and Florida represent a disproportionate share of the new foreclosures. The two states accounted for 30 percent of mortgages starting the foreclosure process, the association said. "In states like California, Florida, Nevada and Arizona, overbuilding of new homes created a surplus that will take some time to work through," Duncan said. That glut has pushed down house prices, he said.

Also:

http://money.cnn.com/2007/05/14/real_estate/first_quarter_NAR_prices/index.htm

http://money.cnn.com/2008/03/24/news/economy/existing_home_sales/index.htm?eref=rss_topstories

 

[jbb9s]

Re: NFL: $9 Billion in Debt

Double b.s.

If someone bought a house years ago, even if they financed it at 100% at the time, it is worth a LOT more than they paid for it. Also, the value of their house is not tied to their working or not working.

Foreclosures are not skyrocketing, unless you definition of skyrocketing is "about the same as they have been in recent years."

Is this the best you could come up with for April Fools?

 

[shmessy]

I just corrected the title of this thread.

The NFL HAS debt. It is not IN Debt.

IN DEBT connotes a net negative net worth. Obviously, this is not the case.

 

[jbb9s]

I just corrected the title of this thread.

The NFL HAS debt. It is not IN Debt.

IN DEBT connotes a net negative net worth. Obviously, this is not the case.

This is the kind of stuff you just don't see at the Raiders or Steelers sites.

 

[PromisedLand]

Re: NFL: $9 Billion in Debt

$9B debt must be taken in context with NFL revenue excess after expenses. Many people have debt (home mortages + car loans + credit cards) that vastly exceeds their annual salary. The key to viability is does your annual income minus expenses leave enough for annual debt servicing? The answer is YES for the NFL.

Yes, but more to the point it must be compared to their assets.

Equity = Assets - Liabilities

If there assets are worth $50B, then their equity is ~ $40B giving them a debt-equity ratio of 9/40 or slightly under 25%. Most businesses would tihnk that is pretty good. It is pointless and meaningless to report debt without also reporting assets.

 

[BradyFTW!]

Re: NFL: $9 Billion in Debt

True story: In California right now, you can rent a nice, 5 bedroom house in the middle of Orange County with a pool and spa in the backyard for... $3,000 per month. That's how bad housing values have gotten out here (though me and my college buddies are loving it).

 

[PatsWickedPissah]

Re: NFL: $9 Billion in Debt

Yes, but more to the point it must be compared to their assets.

Equity = Assets - Liabilities

If there (sic) assets are worth $50B, then their equity is ~ $40B giving them a debt-equity ratio of 9/40 or slightly under 25%. Most businesses would tihnk that is pretty good. It is pointless and meaningless to report debt without also reporting assets.

Yes, I have an MBA too but as others have posted here, the asset side of the equation is soft. The dollar 'value' of many of the franchises is vulnerable to an unfavorable labor settlement or lack of one.

 

[PatsDeb]

Re: NFL: $9 Billion in Debt

And if they get laid off their house which has lost value in a down RE market that had overheated beyond reason just a few short years ago is worth less than they owe on it and that is why forclosures are skyrocketing. If the league isn't scheduling games in 2011 and revenue sharing money (which basically just funded the cap anyway to it went directly to the players) goes the way of the old CBA, half the leagues overvalued franchises will be in forclosure mode.

My response was to Roger Godell's statement that the league is "in debt", meaining in the red, which it clearly is not, by accounting standards. I agree that if the teams "lose their jobs," i.e. suffer a strike, and can't depend on their income, then the financial picture will change. However, to say that because I have a mortgage and might lose my job in a lousy economy means I am in the red is simply untrue. The league has great control over whether it will suffer this fate (unlike lots of regular folks who more at the whim of employers and the economy in general).

It also rings untrue coming from the podium of the Breakers, one of the most luxurious hotels anywhere. If good ole Rog is worried about league finances, then he should make reservations at a Holiday Inn and get Gene Upshaw in a room to prevent any threat of a strike.

 

[MoLewisrocks]

Re: NFL: $9 Billion in Debt

My response was to Roger Godell's statement that the league is "in debt", meaining in the red, which it clearly is not, by accounting standards. I agree that if the teams "lose their jobs," i.e. suffer a strike, and can't depend on their income, then the financial picture will change. However, to say that because I have a mortgage and might lose my job in a lousy economy means I am in the red is simply untrue. The league has great control over whether it will suffer this fate (unlike lots of regular folks who more at the whim of employers and the economy in general).

It also rings untrue coming from the podium of the Breakers, one of the most luxurious hotels anywhere. If good ole Rog is worried about league finances, then he should make reservations at a Holiday Inn and get Gene Upshaw in a room to prevent any threat of a strike.

I don't think Goodell said the league is in debt, at least it's not what he said in the article that spawned this thread. He expressed concern about the debt ratio that is probably a well founded concern given the last CBA and the liklihood owners will opt out of it as a result coupled with the fact that team "values" are wildly overinflated based on league popularity projections and revenue sharing, both of which will go out the window absent a CBA - as will the college draft!

I agree they should find a way to not kill the golden goose. I think a lot of folks in the NFL have been hiding behind spygate because they don't want to talk about what should be far more pressing concerns than an imaginary, media fuled integrity crisis they basically manufactured via mishandling a simple video taping rules infraction...and rumor mongering.

Had we been caught using that tape in game, or had someone been caught bugging visitors locker rooms or wiring linemen for sound or jamming communications devices, or poping in crowd noise, or actually signing a player or coach they tampered with, etc. such concerns for integrity might have been warranted. But dogonit, they didn't catch anyone doing any of those things did they...even though it's been long rumored some in fact were.

If they don't smarten up soon survival will replace integrity as the league's buzz word.