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NFL allows Giants, Jets to borrow $1.5B for stadium


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http://www.nydailynews.com/sports/football/giants/2007/03/27/2007-03-27_nfl_allows_giants_jets_to_borrow_15b_for-1.html

NFL allows Giants, Jets to borrow $1.5B for stadium

The New York Giants and Jets won approval to exceed the National Football League's team debt ceiling and borrow as much as $750 million each to help fund a shared stadium in East Rutherford, New Jersey.

NFL owners, meeting in Phoenix, voted to allow the teams to borrow five times the $150 million a franchise typically permitted under the league's rules because of the high cost of building a stadium in the New York market, said Jets President Jay Cross.

"I think we're looking at 40-year money," Cross said. "It'll be bonds, some combination of floating and fixed. I don't think that's been decided yet."

Cross said Citigroup Inc. is handling the Jets' financing, while Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. are working with the Giants.

The teams plan to break ground in May on the stadium, Cross said. The project, estimated to cost at least $1.4 billion, will be built near their current home, Giants Stadium, and is scheduled to open in 2010.

Building the new stadium has already required the league to waive some of its financial rules. NFL owners voted 30-2 in December to grant the teams a combined $300 million for the stadium, twice the previous high, from a league fund that provides money for construction.

Naming Rights

Steven Tisch, co-owner of the Giants, said the teams would increase efforts to identify naming rights sponsors and sell luxury suites for the new stadium.

"It's now going to be a function of staying on budget in terms of construction, and selling our premium seating for as much money as we can get," he said.

Cross said the teams would next begin making presentations to bond-rating services and may complete the financing in April or May.

The teams' plans call for building an 84,000-seat stadium, according to a document submitted to the New Jersey Department of Environmental Protection and the Meadowlands Commission.

The Giants plan to build a 20-acre training complex in the southwest corner of the development, along with parking areas and tailgating zones. Broadcast facilities, sports medicine clinics, stores, restaurants and a New Jersey Transit rail spur also are part of the project.

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Hey I'm a Jets fan but the only people making out on this deal are the owners of both teams.

Over 1 Billion dollars for One stadium. Great two teams are going to play in it, but it's still one stinking stadium. I don't care how great it is, in about 10 years they are going to want a new one or want new features just like most teams..

It is not worth it to spend billions of dollars on one stadium that will hold what, 16 games per year, a few concerts, a few events,... it's called taxpayers will foot the bill in the long run, regardless of what people say.

And yet the Jets still aren't closer to winning a SB.

1 billion bucks for one stadium sounds like a scam to me. A scam to put more money in a few politicians hands and the owners pockets.

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Hey I'm a Jets fan but the only people making out on this deal are the owners of both teams.

Over 1 Billion dollars for One stadium. Great two teams are going to play in it, but it's still one stinking stadium. I don't care how great it is, in about 10 years they are going to want a new one or want new features just like most teams..

It is not worth it to spend billions of dollars on one stadium that will hold what, 16 games per year, a few concerts, a few events,... it's called taxpayers will foot the bill in the long run, regardless of what people say.

And yet the Jets still aren't closer to winning a SB.

1 billion bucks for one stadium sounds like a scam to me. A scam to put more money in a few politicians hands and the owners pockets.

It's all the nature of the beast that is NFL ownership. Both the Jets & Giants who sell out each year only get about 20% of what the Redskins, Ravens, Texans, Patriots, Broncos, Panthers & Cowboys get each year from the total revenue share of a stadium ownership.

In order to make money, you have to find a way to spend it. The Jets/Giants deal is mostly made up of a stronger profit made through ancillary projects - IE: the new hotels, stores, museums, restauants & parking that both teams will make on not just a weekly basis but a 52-week basis.

Just renting the space, you only make a small amount - you need the revenue or you're Ralph C. Wilson Jr. - who constantly pleads poverty because he refuses to take out loans in order to bring in a better product...

It's not just football - it's lucrative.

As for PSL's - I am a strong believer that the total charge will not be as high as everyone thinks. With the naming rights going for at least 2 billion total (estimated), we will only be paying for the new facilities (JETS-FLORHAM PARK) (GIANTS-MEADOWLANDS) for training & ticket offices.

Overall, like I said before - IT"S GOING TO BE AN INTERESTING SPRING!

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Out here in Seattle, Wa the SuperSonics owner is pushing to have a new building built... People don't want it. The guy basically put down a proposal that asked for about 600 million from taxpayers and the city and state. Ok kind of normal in sports. He also asked for 100 percent proceeds. To me it's a joke. I've only lived out here for about 6 months so I don't know the fan base well, but so far it seems people would rather they move to Oklahoma City then stay in Seattle or Renton or Bellevue. The problem is about 10 years ago they built something new for the Sonics.

Back in NJ, one stadium really shouldn't cost 1 billion dollars and cost everybody 40+ years to pay it off.

Cause the fact is in about 10 years a new owner or existing owner will complain about moving and old out of date features... The whole process will be started again.

If two stadiums were being build for 1 billion bucks, maybe it would make more sense... I think the problem is too many of us New York fans are idiots. Ownership can put a crap team out on the field and the seats would still be packed. The Rangers did that for years.. Sign old players, never make the playoffs, but always sell out.

Owners don't have to push for a SB win if fans keep coming.

Say what you want about George, at least the guy goes out of his way to bring a winner. I can't say the same for the Rangers, Knicks, or even Jets. I hope things change, but the Jets offseason has been ok, nothing more. They sign many under the radar players, backup players and for the most part, role players who won't win you another game or two. Might help you , but won't be the driving force behind it.

On the other hand teams like the Pats sign about 30 different new players, some great names, and they've won 3 SBs and came close to being in another one last season.

I'm about tired of seeing money out of my pocket or money out of Jets fans pockets while Woody just seems to sit back, smoke another cigar, wash his hair some more, and laugh.

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Out here in Seattle, Wa the SuperSonics owner is pushing to have a new building built... People don't want it. The guy basically put down a proposal that asked for about 600 million from taxpayers and the city and state. Ok kind of normal in sports. He also asked for 100 percent proceeds. To me it's a joke. I've only lived out here for about 6 months so I don't know the fan base well, but so far it seems people would rather they move to Oklahoma City then stay in Seattle or Renton or Bellevue. The problem is about 10 years ago they built something new for the Sonics.

Back in NJ, one stadium really shouldn't cost 1 billion dollars and cost everybody 40+ years to pay it off.

Cause the fact is in about 10 years a new owner or existing owner will complain about moving and old out of date features... The whole process will be started again.

If two stadiums were being build for 1 billion bucks, maybe it would make more sense... I think the problem is too many of us New York fans are idiots. Ownership can put a crap team out on the field and the seats would still be packed. The Rangers did that for years.. Sign old players, never make the playoffs, but always sell out.

Owners don't have to push for a SB win if fans keep coming.

Say what you want about George, at least the guy goes out of his way to bring a winner. I can't say the same for the Rangers, Knicks, or even Jets. I hope things change, but the Jets offseason has been ok, nothing more. They sign many under the radar players, backup players and for the most part, role players who won't win you another game or two. Might help you , but won't be the driving force behind it.

On the other hand teams like the Pats sign about 30 different new players, some great names, and they've won 3 SBs and came close to being in another one last season.

I'm about tired of seeing money out of my pocket or money out of Jets fans pockets while Woody just seems to sit back, smoke another cigar, wash his hair some more, and laugh.

Woody's a very frugal guy. He even makes the shampoo he washes his hair with. :biggrin:

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I have a question for those of you who study this issue:

Does this new stadium agreement have any marketing plan to eliminate the term "Giants Stadium"?

This whole project feels like spending my allowance to buy my brother's bike.

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The only thing Woody has shown me while he has been the owner that he is not scared to raise prices. I will not give him the benefit of the doubt on the PSLs because it will be supply and demand...brand new stadium in the new york market..tons of demand and he can care less about the existing season ticket holder base

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Here is my take on it. Take it for what it is worth.

There will be PSL's and they will be high. The reason: The corporate folks are going to get the best seats because they can afford them. Those of you have had the seats between the 20's and in the first and second level's are going to be looking at I would say about $10,000 a seat for the PSL. So unless you are saving now or have an extra 10 grand sitting around you are going to start looking at maybe some other part of the stadium where the PSL won't be as high.

I'm going to say about 30% of the season ticket holders (Probably a high estimate) won't even bother to keep their tickets. I can't imagine alot of the folks who whine about spending 3-4 hours on the road coming in from Long Island are going to be willing to spend the cash on the PSL and some are going to p!ssed off that they even have to pay a PSL. (I would have been one of those) and some just flat out are not going to be able to afford it.

After the PSL the ticket prices are going to go up as well. Some like to point at the Pats ticket prices as being high right now. The Jets and the Giants will be at that level if not higher when the new stadium opens. It wouldn't suprise me to see $90-100 for upper level and $125-200 for lower level.

It is going to be a tough situation for alot of Jets and Giants fans. I could not see myself with a wife and three kids dropping a couple of grand just for the "rights" to spend more money on season tickets. I'm sure there are going to be others that will face that situation. The raucous crowds that have been seen through the years, be it in Yankee Stadium, Shea, or the Medowlands will be gone forever. If you don't believe it just take a look at the crowds at Yankee Stadium. 10 years ago, they were raucous and rowdy and now half of them probably don't even know who Chuck Knoblauch was.

I guess we will find out soon enough. My guess though is that in about 10 years there will be no waiting list for season tickets and you will be able to open your local newspapers and see alot of people looking to sell (either at a profit or a loss) their PSL's.

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"It's now going to be a function of staying on budget in terms of construction, and selling our premium seating for as much money as we can get"

This says it all, and even though this statement by Tisch in reference to the luxury boxes, you can rest assured that this attitude will prevail for all seats for both teams. Write it in stone and bend over.

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I have a question for those of you who study this issue:

Does this new stadium agreement have any marketing plan to eliminate the term "Giants Stadium"?

This whole project feels like spending my allowance to buy my brother's bike.

It will not be Giants Stadium, they are already shopping the name around. In addition, they are looking at marketing different "corners" of the stadium for additional revenue. A lot of it is still up in the air, but one thing for certain is it will never be called Giants Stadium...

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Not in our lifetime I'm afraid Ghost :frown:. Old Woody sold us out with all his BS about us having our own stadium etc. :cussing:

That is some real BS. I wish they could atleast change the damn name. After all, we are better then the Giants.

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It might not be called Giants Stadium, but the fact is, the Giants had a proposal to build a new stadium. The Jets had a proposal to build a new stadium. The Jets walked out of NYC with their tails between their legs and came running to the first offer that seemed to land in their feet.

It is like spending your allowance on your older brothers new bike...Except your older brother still gets to use it and call it his own. ANd this came after the Jets went out all hyped up about this great new bike, great features, and being out on their own and away from their older brother and bragging about how much better their deal and bike would be. But in the end, the Jets fell flat on their faces and had to beg their older brother to allow them to use the new bike the older brother already owned.

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I have a question for those of you who study this issue:

Does this new stadium agreement have any marketing plan to eliminate the term "Giants Stadium"?

This whole project feels like spending my allowance to buy my brother's bike.

Part of the agreement between the 2 teams is that the Naming rights will take on the new name - IE: "............" Stadium/Field/Bowl @ The Meadowlands.

The winner of that name will pay between $20-25 million dollars per year for 30 years for that right = $600-800 million.

The four endzones will also have a separate Corporate sponsor at a cost of $10 million dollars per year/$300 million over 30 years per entry = $1.2 Billion.

This is why they needed the extention for the payout to last longer than 30 years.

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Gary Myers had this Jay Cross quote in todays Daily News:

"I think, on the flip side, the experience with PSLs is no altogether bad. Fans generally have come to appreciate what they are and the value they bring."

That is gold. GOLD. The fact that he said that without laughing is amazing. Let me see I am going to games in Giants Stadium now. And in 2010 I will drive the same distance to see games at Alka Seltzer Stadium. Yet it costs me much more.

Someone is going to have to sit me down and explain the value TO ME. I am sorry but I tend to be a little slow on the uptake. Don't get me wrong, I was all for the NY Stadium. But they failed.

They need to at least buy me dinner before trying to screw me.

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Gary Myers had this Jay Cross quote in todays Daily News:

"I think, on the flip side, the experience with PSLs is no altogether bad. Fans generally have come to appreciate what they are and the value they bring."

That is gold. GOLD. The fact that he said that without laughing is amazing. Let me see I am going to games in Giants Stadium now. And in 2010 I will drive the same distance to see games at Alka Seltzer Stadium. Yet it costs me much more.

Someone is going to have to sit me down and explain the value TO ME. I am sorry but I tend to be a little slow on the uptake. Don't get me wrong, I was all for the NY Stadium. But they failed.

They need to at least buy me dinner before trying to screw me.

They need to take all of us to PARIS for the weekend over this $5,000 per person around the world!

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It will not be Giants Stadium, they are already shopping the name around. In addition, they are looking at marketing different "corners" of the stadium for additional revenue. A lot of it is still up in the air, but one thing for certain is it will never be called Giants Stadium...

I like what you're saying, and I hope you're right. ..But can the league or the teams do anything to prevent the Media's Giants-homers from using the term? It's supposed to be the meadowlands now, right?

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I like what you're saying, and I hope you're right. ..But can the league or the teams do anything to prevent the Media's Giants-homers from using the term? It's supposed to be the meadowlands now, right?

It still says "GIANTS STADIUM" on the outside of the building - even with the giant JETS insignal flags on our home stands...

That's why they will continue to call it Giants Stadium until 2010 - On that opener I would not be surprised that they take a blimp shot of the old stadium & remark about our OLD HOME as Giants Stadium...

But that's what you get when you are a tennant of a building that was FORCED to take the G-girl's name when the Meadowlands commission offered it to them - after Leon refused to move from Shea the 1st time - David "Sonny" Werblin, our original owner, was the head of the Meadowlands commission at the beginning of the project & offered the JETS a 1st crack at their own home - way back in 1972, three years before the G-girls moved in...

So the next time a G-girl calls the Meadowlands their home & that we should get out - remind them that we were offered this home 1st!

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It still says "GIANTS STADIUM" on the outside of the building - even with the giant JETS insignal flags on our home stands...

That's why they will continue to call it Giants Stadium until 2010 - On that opener I would not be surprised that they take a blimp shot of the old stadium & remark about our OLD HOME as Giants Stadium...

But that's what you get when you are a tennant of a building that was FORCED to take the G-girl's name when the Meadowlands commission offered it to them - after Leon refused to move from Shea the 1st time - David "Sonny" Werblin, our original owner, was the head of the Meadowlands commission at the beginning of the project & offered the JETS a 1st crack at their own home - way back in 1972, three years before the G-girls moved in...

So the next time a G-girl calls the Meadowlands their home & that we should get out - remind them that we were offered this home 1st!

BAUMER please inform Woody it would be my pleasure to throw the swich that blows that Giant sign up wearing my JET Jersey the day after the last game we play in that place ,this would give a great deal of satisfaction to JET fans everywhere

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That's a bad argument... "We were offered it first but dumb owners and lack of interest" were the reason that it didn't happen.

Gee, there are plenty of people who say, "They thought of this first, but so and so became the millionaire" and so on.

I don't think the new stadium will be any different. The Jets came crawling back to the Giants and begged to get in on the new stadium deal. Yeah it won't be called GIANTS STADIUM, but i'm sure most people, except us NY Jets fans, will still call it that.

There are plenty of stadiums around in many sports that are called one thing on the sign because of sponsorship, but called an entirely different name by fans, the team, and the media.

When you desperately come in at the last momen because your own stadium deal fell through, you really are holding no cards.

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