#297 Robert Kraft

[mikey]

http://www.forbes.com/lists/2006/54/biz_06rich400_Robert-Kraft_GSI4.html


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[Tunescribe]

http://www.forbes.com/lists/2006/54/biz_06rich400_Robert-Kraft_GSI4.html


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In 12 years the Patriots have skyrocketed in value from the $172 million Kraft paid to more than $1 billion. Why are we paying the highest ticket prices in the NFL?

 

[PatsWickedPissah]

In 12 years the Patriots have skyrocketed in value from the $172 million Kraft paid to more than $1 billion. Why are we paying the highest ticket prices in the NFL?

1. Cash flow. A debtor needs heavy cash flow to service a couple hundred million in private loans to build the stadium.

2. It's called supply and demand. People are lined up deep on waiting lists to buy the 'overpriced' tix. Go figure.

3. Because he CAN.

 

[mtbykr]

In 12 years the Patriots have skyrocketed in value from the $172 million Kraft paid to more than $1 billion. Why are we paying the highest ticket prices in the NFL?

If he wasn't selling all the tickets, he prob wouldn't be able to keep them so high. As long as they keep selling them, they will stay high!

 

[LA Pats Fan]

The value of the team is based what people are willing to pay for it.

The fact that the team generates significant revenue (inc ticket prices) makes it attractive. Value is related to profit it generates.

 

[fgssand]

1. Cash flow. A debtor needs heavy cash flow to service a couple hundred million in private loans to build the stadium.

2. It's called supply and demand. People are lined up deep on waiting lists to buy the 'overpriced' tix. Go figure.

3. Because he CAN.

Of course nobody cares to mention Patriot Season Ticket holders did not face any PSL's which most other new stadiums cities have. Some pay as much as $5,000 for the privilege of renewing your tickets when the new stadiums are done.

Furthermore, there was no taxpayer money used either, other than a very small amount recieved from the state for infrastructure only. Most owners force taxpayers to help finance their new stadiums under the threat of leaving town if the government does not step in.

 

[Born_a_Patriot]

You get what you pay for. Before Kraft You also got what you pay for. I think we are better off now.

 

[fgssand]

You get what you pay for. Before Kraft You also got what you pay for. I think we are better off now.

NO question.......

 

[BelizePats]

I love Bob Kraft. The culture of the team changed as soon as he became the owner. It starts at the top.
If ownership stinks, its very likely that the team will stink too. Not always but in most cases.

 

[PatsWickedPissah]

Of course nobody cares to mention Patriot Season Ticket holders did not face any PSL's which most other new stadiums cities have. Some pay as much as $5,000 for the privilege of renewing your tickets when the new stadiums are done.

Furthermore, there was no taxpayer money used either, other than a very small amount recieved from the state for infrastructure only. Most owners force taxpayers to help finance their new stadiums under the threat of leaving town if the government does not step in.

Excellent points. Were PSLs involved, I would have needed to write a check to my season tix buddy in the thousands for my minority share. Even with the $125 per seat prices, the DIFFERENCE between that high price and a lower seat price would take a LONG TIME to recover even neglecting present value calculations.

 

[PATSNUTme]

It looks like some people yearn for the days of Victor Kiam.

Tickets were cheap then and plentiful. So were blackouts of local television.

 

[PatsWickedPissah]

I did like being able to wait and see what the weather was like on gameday, then drive to the stadium and pick up really nice seats at face value or below. Parking was $10.

 

[DESERTPAT]

You get what you pay for. Before Kraft You also got what you pay for. I think we are better off now.

Amen brother. Do they teach basic economics in school nowadays or do high school graduates leave school thinking money grows on trees?

 

[PatsWickedPissah]

The answer is b

 

[Tunescribe]

Excellent points. Were PSLs involved, I would have needed to write a check to my season tix buddy in the thousands for my minority share. Even with the $125 per seat prices, the DIFFERENCE between that high price and a lower seat price would take a LONG TIME to recover even neglecting present value calculations.

I've been a season ticket holder for 13 years and would PREFER PSLs. They're better than money in the bank, in that they appreciate in value over time. You can sell them at a profit if you want, and aside from that you can do anything you want with your tickets, including selling them at a profit as well. I would like knowing that the tickets/seats are mine in perpetuity according to a legal, signed contract.

 

[mikey]

Robert Kraft is a "self-made" billionaire??

I thought he got the money from his ol' lady.


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[PatsWickedPissah]

I've been a season ticket holder for 13 years and would PREFER PSLs. They're better than money in the bank, in that they appreciate in value over time. You can sell them at a profit if you want, and aside from that you can do anything you want with your tickets, including selling them at a profit as well. I would like knowing that the tickets/seats are mine in perpetuity according to a legal, signed contract.

There is merit in your arguement.

My season tix owning buddy has been published in the Globe several times criticizing Kraft's new policy of not allowing season tix to be passed on a generation. (We all know that the Globe gets serious wood over anything anti-Kraft). Previously, he'd had his tix formally transferred from his father in law back when prior owners owned the Pats. Now he would like to be able to pass them onto his college aged sons eventually. But he cannot. Yet the Pats allow CORPORATE season tix to pass on through numerous management changes, corporate mergers and acquisitions and so forth. Why the bias against families? If he had a PSL, the point would be moot. Minor detail being at the time he did not have the cash to buy a PSL, but that's a detail.

 

[njpatsfan]

In 12 years the Patriots have skyrocketed in value from the $172 million Kraft paid to more than $1 billion. Why are we paying the highest ticket prices in the NFL?

Let me rearrange your sentences a bit:

"We paying the highest ticket prices in the NFL. In 12 years the Patriots have skyrocketed in value from the $172 million Kraft paid to more than $1 billion."

See, you had the answer all along.

R

 

[shmessy]

Robert Kraft is a "self-made" billionaire??

I thought he got the money from his ol' lady.


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The Hiatt family had millions. Kraft turned it into billions.

Mikey would have turned it into thousands. Like Chuck Sullivan.

 

[ilduce06410]

Of course nobody cares to mention Patriot Season Ticket holders did not face any PSL's which most other new stadiums cities have. Some pay as much as $5,000 for the privilege of renewing your tickets when the new stadiums are done.
Furthermore, there was no taxpayer money used either, other than a very small amount recieved from the state for infrastructure only. Most owners force taxpayers to help finance their new stadiums under the threat of leaving town if the government does not step in.

what that means to me is that kraft is carrying a lot of debt.
BUT
the irs rules are favorable to MLB, NFL, NBA owners who build their own stadiums. accelerated depreciation.
but PSLs at $1000/license x 40,000 licenses woulda produced a one-time bonanza, like $40 million. patriots generate that much income in about 4 home games. he'd didn't really sacrifice too much with that.
no matter what, tho, kraft has build up a lot of capital and the value of his properties has skyrocketed.
i remember the day he made that offer, about $30m higher than any other bid. the other bidders were aghast. thought kraft had lost his mind. especially after paying another $130 million for that s___hole stadium. meanwhile, the krafts were singing and dancing about how they'd gotten the pats for ONLY $172 million. and walked away.

but what's he gonna do with all that money? at this point it's all just numbers. having that much money is only good for one thing i can imagine. to buy something else.
an insane idea---somehow i think he plans to buy the celtics. maybe faneuil hall. maybe the effin charles river.