02-07-2007, 06:01 PM
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Re: NFL Revenue Sharing
Originally Posted by Atlanta Dan
The disconnect between the diverging interests of the small and big revenue teams is a ticking time bomb.
With regard to the stadium loan fund, here are excerpts from a story that came out last week:
NFL says stadium fund has run dry
In a piece of bad news for the 49ers, albeit news they might have known was coming, NFL Commissioner Roger Goodell said today that the league's stadium-building subsidy program has run out of money.
Speaking Friday in Miami, where the Super Bowl will be held on Sunday, Goodell delivered a "state of the league" address. Afterward, he was asked if it were true that the "G3" funding had run dry. He said it had, and that the league would have to find a new way to help teams and cities build or refurbish stadiums. A new stadium can cost a billion dollars....
The NFL's G3 program has subsidized stadium construction or renovation, and the loans are repaid with the visiting teams' share of club-seat revenue once the project is finished.
League observers knew that the program was about out of money. In December, NFL owners approved a $300 million loan from their G3 stadium fund to help pay for the construction of a new, joint stadium for the New York Giants and New York Jets.
The stadium is expected to cost between $1.1 billion to $1.2 billion and will be located at the Meadowlands, the site of the current stadium. Previously, G3 loans were limited to $150 million per club, but the Giants and Jets received a 50 percent funding match because they are in a top-five television market.
Owners also approved a $42.5 million grant from the G3 program to help renovate Arrowhead Stadium in Kansas City.
The combined $342.5 million in grant approvals essentially drained the G3 fund.
That means the 49ers, the Cowboys and the Vikings, three teams in the process of planning stadium proposals, might have their projects delayed until a new funding program is in place, unless they find another way to come up with a billion dollars.
So the New York teams and Kraft got theirs and everyone else can go pound sand -only funny part of the story is that it looks like the fund being tapped out at least temporarily screws the Cowboys.
FYI - the loan to the Giants and Jets was approved 30 - 2.
The Buffalo Bills and Cincinnati Bengals voted against the request. They also were the only teams to vote against the sport's labor and revenue-sharing settlement in March.
As I said yesterday in a post on whether Tagliabue should be in the HOF, there is a good chance that in 2008 the owners opt out of the collective bargaining agreement that Tags rammed through last year and the house of cards that keeps the NFL from turning into baseball in terms of all teams being able to compete may collapse.
Great article dan, I think they need to redo the deal. We dont need owners going broke and having florida marlin like firing sales.