Gov Pritzker: Bears new stadium is “non-starter” for state

[Moses Moreno]

Why don’t they just build the stadium in Arlington? Damn this organization is crazy.

Because they don't have the money to do that. Pretty simple.

 

[Szlachcic]

The Bears have the money to build it . They just want to squeeze every single penny out of taxpayers..

 

[Moses Moreno]

The Bears have the money to build it . They just want to squeeze every single penny out of taxpayers..

They don't have billions in capital to pay for it and they don't have the political capital to get Springfield to pay for it.

 

[truthbedamned]

How does X Stadium sound?

Or maybe Amazon Stadium.

Tesla Stadium

SpaceX Stadium

 

[ZOMBIE@CTESPN]

How does X Stadium sound?

Or maybe Amazon Stadium.

Tesla Stadium

SpaceX Stadium

Egglands best stadium is prob best

 

[msadows]

Because they don't have the money to do that. Pretty simple.

They don't have billions in capital to pay for it and they don't have the political capital to get Springfield to pay for it.

Sure they do, and they could easily find people to invest in it.

Difference is theyd rather have us pay for it than have a partner.

 

[knoxville7]

Sure they do, and they could easily find people to invest in it.

Difference is theyd rather have us pay for it than have a partner.

for real...imagine thinking a family that owns an NFL franchise that is worth billions of dollars cant get a loan or drum up investors to make said franchise worth even more billions

 

[msadows]

for real...imagine thinking a family that owns an NFL franchise that is worth billions of dollars cant get a loan or drum up investors to make said franchise worth even more billions

BUT THEY DONT HAVE THE MONEY

neither does #45 but the guy somehow keeps finding people to give him money for his dumb investments and business opportunities over the years. When you are "rich" the normal rules of society dont apply.



Honestly I just feel like George and company does not really want to keep this franchise for the long run and plan on eventually selling once ginny is dead. Makes a lot less sense for them to put a lot of their money into the stadium if they wont even own the team in a decade.

Arlington would take much more planning and involve a lot more mouths to feed regarding profit sharing than just getting a nice tax payment from the city.

Churchill, who I belive they bought arlington from, would be lining up to get a taste of the revenue share from a sportsbook/casino/hotel. This is always what i thought was the most logical move to decrease initial cost but the bears clearly dont want partners.

 

[knoxville7]

BUT THEY DONT HAVE THE MONEY

neither does #45 but the guy somehow keeps finding people to give him money for his dumb investments and business opportunities over the years. When you are "rich" the normal rules of society dont apply.



Honestly I just feel like George and company does not really want to keep this franchise for the long run and plan on eventually selling once ginny is dead. Makes a lot less sense for them to put a lot of their money into the stadium if they wont even own the team in a decade.

Arlington would take much more planning and involve a lot more mouths to feed regarding profit sharing than just getting a nice tax payment from the city.

it def seems like as soon as ginny bear bites the dust, the kids will be looking to sell.

maybe we can start a CCS go fund me to buy the franchise and be actual owners, unlike the ruse packer fans fall for

 

[msadows]

it def seems like as soon as ginny bear bites the dust, the kids will be looking to sell.

maybe we can start a CCS go fund me to buy the franchise and be actual owners, unlike the ruse packer fans fall for

That guy who owns the jags should just sell that shit franchise and buy the bears.

Think hes from chicagoland?

 

[remydat]

lol at you thinking they dont have the money to build in arlington by themselves.

Investors will be lining up to get a taste of the profits of the hotel, casino, and retail at arlington

Stick to reading pff numbers bud

The mccaskeys are just cheap AF, and the family likely sells not too long after ginny's passing. Warren is feeding them the idea they wont have to pony up as much cash staying in chicago and that makes their cheap asses happy.

Right Bears fans think McCaskeys are grossly incompetent but also think investors are lining up to give them money to build a whole football community when the main McCasky has zero experience and is a little league ref.

This is not Jerry Jones or Stan Kroenke or Robert Kraft. They are owners who have limited to zero real estate experience. The McCaksey's have zero experience with a project of this scale so no I dont think a ton of investors are lining up.

If I had money and I wanted to invest I would be demanding equity and not lending them money.

 

[knoxville7]

imagine not being willing to lend money to someone that is guaranteed to be able to pay you back with interest all because you want to demand something that isnt on the table.

 

[remydat]

I do due dilligence on M&A and real state acquisitions all the time. The math I am aware of just doesnt work. The McCaskey's only real asset is the time and it has a valuation of about 6 billion. That valuation is inclusive future projected cash flows from the team.

If the Chicago stadium costs 5 billion then AH with the additional commercial, retail and residential add ons is like around 7 billion.

Let's assume McCaskey's can put up 2 billion which is what they are proposing for the Chicago stadium. And again bear in mind they have a 40% estate tax bill on that 6 billion when Virginia dies so that is another 2.4 billion. So that is 4.4 billion on there end they will owe between the stadium and their estate tax bill. This again is without any other meangingful assets beyond the team.

So that still leaves them 5 billion short on AH. Lets say the NFL kicks in 1 billion and PSLs are at the high of 500m. That still leaves them 3.5 billion sort. At a 6 billion valuation they would need to sell 60% of the team to get the other 3.5 billion.

They only own 80% of the Bears and someone has to own at least 30% so they cant sell 60% by themselves unless they selling to someone that will be majority owner.

So unless someone is willing to overpay at say a valuation of like 7-8 billion, they cant really sell enough equity to fund AH ubless they are willing yo lose a majority stake.

And I dont any competent investor is going to loan the McCaskeys 3.5 billion and trust them to build a stadium when they jave zero experience in this space.

Now hey maybe I am wrong but maybe a guy like @RacerX who is in financing can correct me if some of my assumptions here are wrong.

 

[remydat]

imagine not being willing to lend money to someone that is guaranteed to be able to pay you back with interest all because you want to demand something that isnt on the table.

They arent guaranteed to be able to pay you back and they cant use the team as collateral in a loan as the NFL doesnt allow that. So the only thing that can be used as collateral is the stadium and other development but stadiums and real estate developments lose money all the time. Especially when the stadium is only used like 20-30 days out of the year.

Again this is why the vast majority of teams let the state pay for and own the stadium because it usually loses money for the majority of the year.

 

[knoxville7]

They arent guaranteed to be able to pay you back and they cant use the team as collateral in a loan as the NFL doesnt allow that. So the only thing that can be used as collateral is the stadium and other development but stadiums and real estate developments lose money all the time. Especially when the stadium is only used like 20-30 days out of the year.

Again this is why the vast majority of teams let the state pay for and own the stadium because it usually loses money for the majority of the year.

never said anything about using the team as collateral

 

[remydat]

never said anything about using the team as collateral

Didnt say you did but a loan of this size usually requires collateral and the point is the collateral in this case is only usable 20-30 times a year.

And hotels and casinos lose money. Just ask the guy running for Prez that has filed for bankruptcy numerous times despite being in the real estate business for 40-50 years.

So no there are no guarantees especially when the McCaskeys have limited experience here. The only guy with any experience dropped AH and is focused on downtown.

Edit - Please note that per the article below the cap on debt is 600 million. So that is less than 10% of a proposed 7 billion dollar stadium and football community.

Again there is a reason it is only the owners that have money outside of football and real estate development experience that own their stadiums.

 

[remydat]

I do due dilligence on M&A and real state acquisitions all the time. The math I am aware of just doesnt work. The McCaskey's only real asset is the time and it has a valuation of about 6 billion. That valuation is inclusive future projected cash flows from the team.

If the Chicago stadium costs 5 billion then AH with the additional commercial, retail and residential add ons is like around 7 billion.

Let's assume McCaskey's can put up 2 billion which is what they are proposing for the Chicago stadium. And again bear in mind they have a 40% estate tax bill on that 6 billion when Virginia dies so that is another 2.4 billion. So that is 4.4 billion on there end they will owe between the stadium and their estate tax bill. This again is without any other meangingful assets beyond the team.

So that still leaves them 5 billion short on AH. Lets say the NFL kicks in 1 billion and PSLs are at the high of 500m. That still leaves them 3.5 billion sort. At a 6 billion valuation they would need to sell 60% of the team to get the other 3.5 billion.

They only own 80% of the Bears and someone has to own at least 30% so they cant sell 60% by themselves unless they selling to someone that will be majority owner.

So unless someone is willing to overpay at say a valuation of like 7-8 billion, they cant really sell enough equity to fund AH ubless they are willing yo lose a majority stake.

And I dont any competent investor is going to loan the McCaskeys 3.5 billion and trust them to build a stadium when they jave zero experience in this space.

Now hey maybe I am wrong but maybe a guy like @RacerX who is in financing can correct me if some of my assumptions here are wrong.

NFL Stadium Financing Thrives Despite Inflation, Borrowing Costs

High borrowing costs and greater construction expenses don't appear to be making a dent in the ability of NFL franchises to build new stadiums.

www.sportico.com

Not sure if this is current but there is a 600 million cap on debt. Makes sense given Warren talking extensively about researching the new Private Equity option.

So even if they borrow the max 600 milliom that still leaves a 2.9 billion shortfall in my example above.

 

[TheEarlofRobin]

So no there are no guarantees especially when the McCaskeys have limited experience here. The only guy with any experience dropped AH and is focused on downtown.

Good thing Kevin Warren was brought in. Maybe he can consult Gideon's Bible and get FMV.

 

[remydat]

Good thing Kevin Warren was brought in. Maybe he can consult Gideon's Bible and get FMV.

Yeah he came in and changed the plan to downtown. LMFAO!

 

[Szlachcic]

So how Jones pull this off building Dallas stadium?