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

[TheEarlofRobin]

I love how people think the Bears are sitting on billions of dollars to build a complex in Arlington.

They will have something like a 2-3 billion dollar tax bill when Virginia dies. I doubt they have the money to build Arlington which is why Warren likely killed that idea when he arrived.

What? I remember in one of the only moves that ever panned out for Ryan Pace, the Raiders had to get rid of Khalil Mack because Mark Davis didn't have enough cash to afford up-front bonus money. Then a few years later the Raiders are relocating to a brand new Allegiant Stadium complex in Vegas. It's amazing how every NFL franchise can make this happen yet Kevin Warren is "killing the idea" after the Bears purchased the land. Just incredible.

 

[knoxville7]

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.

No, that would not be the collateral. I can’t imagine owning the bears is the only assets the mccaskeys have

If that is somehow the case, then they are truly the dumbest morons on earth to not make any investments of any kind outside of the Chicago bears ownership

More likely, is that they have millions upon millions in other investments at this point, plus a business model where they can show ridiculous amounts of revenue and profit from owning the bears…and a bank would likely look at a loan to them as a pretty low risk investment that is likely to yield a nice chunk of money off of interest

Yes, trump managed to bungle owning a casino. He’s a colossal moron that which we didn’t think could possible exist. Let’s give the rest of the non MAGA crowd a lil more credit. I think even you can agree with me on that

 

[remydat]

So how Jones pull this off building Dallas stadium?

Got 325 million from the city and stadium only cost 1.83 billion. He also has money outside of the team and doesnt own the stadium. The stadium is owned by the city of Arlington. Jones makes his money because he operates the concessions and merchandising.

 

[remydat]

No, that would not be the collateral. I can’t imagine owning the bears is the only assets the mccaskeys have

If that is somehow the case, then they are truly the dumbest morons on earth to not make any investments of any kind outside of the Chicago bears ownership

More likely, is that they have millions upon millions in other investments at this point, plus a business model where they can show ridiculous amounts of revenue and profit from owning the bears…and a bank would likely look at a loan to them as a pretty low risk investment that is likely to yield a nice chunk of money off of interest

Yes, trump managed to bungle owning a casino. He’s a colossal moron that which we didn’t think could possible exist. Let’s give the rest of the non MAGA crowd a lil more credit. I think even you can agree with me on that

Well they overpaid for Arlington and now have no plan for what to do with it. Bear in mind they also have a 2.4 billion estate tax bill coming due soon.

The money they make from football is already contemplated in the valuation of the team as the 6 billion valuation would include the present value of future cash flows of the team.

And again any bank loan is capped at 600 million per NFL rules.

Further since the team cant be used as collateral it is likely you would have to set up an SPV as you cant lend to the team or McCaskeys directly as otherwise it would be unlimited liability and thus the bank would be able to seize any assets they own ie the team which again the NFL doesnt allow.

So you need an SPV that would have limited liability that would hold the collateral and technically only the asseys and revenues from that SPV ie the stadium and development can be seized in the event of default. Ergo much of their revenue from the NFL would not be required.

That is how Trump can file multiple bankruptcies and still be rich. It is the SPV that files for banktuptcy and none of his personal assets and revenues can be touched.

To close the stadium again likely only generates revenues for 20-30 days a year and others costs a **** ton to upkeep. That is precisely why most owners including Jones allow the city to own the stadium as it is the city paying the cost to maintain the building 365 days a year.

 

[Gustavus Adolphus]

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.

I have said for a number of years now there are a good number of extended Halas (especially them) and McCaskey's that want to sell their shares. Only one person can block it.

 

[Ares]

I wonder if the Bears would have an easier time asking for money were they a perennial winning franchise.

I think they would.

 

[hyatt151]

Illinois gov.: Bears' stadium plan a 'nonstarter'

The Chicago Bears' proposal to fund a new lakefront stadium remains a "nonstarter," Illinois Gov. J.B. Pritzker's office said after top aides met with team officials Wednesday.

www.espn.co.uk

I thought the Bears laid out their plans last week like it was a done deal? So the team announced a new stadium but never had approval from the state?

seems like it

 

[knoxville7]

Well they overpaid for Arlington and now have no plan for what to do with it. Bear in mind they also have a 2.4 billion estate tax bill coming due soon.

The money they make from football is already contemplated in the valuation of the team as the 6 billion valuation would include the present value of future cash flows of the team.

And again any bank loan is capped at 600 million per NFL rules.

Further since the team cant be used as collateral it is likely you would have to set up an SPV as you cant lend to the team or McCaskeys directly as otherwise it would be unlimited liability and thus the bank would be able to seize any assets they own ie the team which again the NFL doesnt allow.

So you need an SPV that would have limited liability that would hold the collateral and technically only the asseys and revenues from that SPV ie the stadium and development can be seized in the event of default. Ergo much of their revenue from the NFL would not be required.

That is how Trump can file multiple bankruptcies and still be rich. It is the SPV that files for banktuptcy and none of his personal assets and revenues can be touched.

To close the stadium again likely only generates revenues for 20-30 days a year and others costs a **** ton to upkeep. That is precisely why most owners including Jones allow the city to own the stadium as it is the city paying the cost to maintain the building 365 days a year.

Yes, you have stated all of this already. You didn’t address anything I said lol

 

[Moses Moreno]

No, that would not be the collateral. I can’t imagine owning the bears is the only assets the mccaskeys have

If that is somehow the case, then they are truly the dumbest morons on earth to not make any investments of any kind outside of the Chicago bears ownership

More likely, is that they have millions upon millions in other investments at this point, plus a business model where they can show ridiculous amounts of revenue and profit from owning the bears…and a bank would likely look at a loan to them as a pretty low risk investment that is likely to yield a nice chunk of money off of interest

Yes, trump managed to bungle owning a casino. He’s a colossal moron that which we didn’t think could possible exist. Let’s give the rest of the non MAGA crowd a lil more credit. I think even you can agree with me on that

It's pretty common knowledge that the family's cash poor and the Bears are the only significant asset they have. I think they do have some investment in Blue Cross Blue Shield but that's maybe one or two family members and there's most likely not nearly enough equity to get them over the finish line.

The AH complex is a pretty stupid idea overall - half of the games are going to be cold weather so that kinda sucks and outside of the Rams (owner is independently wealthy) and the NY teams (they were able to go in on it together) no teams recently have built their own stadium with their own money. There's already plenty of hotels in the area with O'Hare/Rosemont and Schaumburg both nearby and the 8 weekends a year isn't enough to justify the development.

They need state money and the state isn't interested in finding a new stadium. I bet they eventually wind up going the frugal route and enclose the current Soldier Field + add another 6-7k seats and call it a day.

 

[Runruffshod75]

Illinois gov.: Bears' stadium plan a 'nonstarter'

The Chicago Bears' proposal to fund a new lakefront stadium remains a "nonstarter," Illinois Gov. J.B. Pritzker's office said after top aides met with team officials Wednesday.

www.espn.co.uk

I thought the Bears laid out their plans last week like it was a done deal? So the team announced a new stadium but never had approval from the state?

They need to win more. They need to win a lot more to garner more public support to apply pressure to local political figures and city council.

You may be able to be a flop franchise and still get a new home to play in within cities like Jacksonville where the regulations are fewer and father between, but if you want a new stadium in Chicago, LA, SF, or just outside of NYC you need to win games and have success in the postseason to get the public on board.

Winning does cure everything in a sport with a salary cap.

 

[Moses Moreno]

They need to win more. They need to win a lot more to garner more public support to apply pressure to local political figures and city council.

You may be able to be a flop franchise and still get a new home to play in within cities like Jacksonville where the regulations are fewer and father between, but if you want a new stadium in Chicago, LA, SF, or just outside of NYC you need to win games and have success in the postseason to get the public on board.

Winning does cure everything in a sport with a salary cap.

Kansas City is struggling just as much as the Bears are in securing public funding for their stadium.

It's just deeply unpopular no matter how good the team is.

 

[Canth]

I didn't read through all the posts and links, but I did see this tweet from Courtney Cronin. I thought it was interesting how the quote from George McCaskey acknowledges they essentially only have 3 legislative sessions in the near future to get agreement to be able to government funding.

https://twitter.com/i/web/status/1844390077474144576

 

[nc0gnet0]

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.

They don't have to develop all of the property at the same time, they can build the stadium and parking, then parcel out the surrounding land. This land would see of value increase of 5-10x. They could then sell/lease parcels, while keeping a controlling interest in what is to be built. They can then charge yearly fees for this land as well. There are multiple ways to pull this off.

 

[BearFanJohn]

They don't have to develop all of the property at the same time, they can build the stadium and parking, then parcel out the surrounding land. This land would see of value increase of 5-10x. Thy could then sell/lease parcels, while keeping a controlling interest in what is to be built. They can then charge yearly fees for this land as well. There are multiple ways to pull this off.

Are you forgetting that this is the McCaskey family? They poorly market their team and they can’t put together a winner. A new stadium in AH has far too many moving parts for them to handle successfully.

 

[zabavka]

Just bite the bullet and get a name to sponsor it and therefore pay.

Thinking X stadium for AH, lol

 

[knoxville7]

Just bite the bullet and get a name to sponsor it and therefore pay.

Thinking X stadium for AH, lol

I dont think DMX is in the market to buy a stadium these days....

 

[nc0gnet0]

I didn't read through all the posts and links, but I did see this tweet from Courtney Cronin. I thought it was interesting how the quote from George McCaskey acknowledges they essentially only have 3 legislative sessions in the near future to get agreement to be able to government funding.

https://twitter.com/i/web/status/1844390077474144576

LMAO

Taxpayers Still Owe $640M on 2002 Soldier Field Renovation

Documents obtained by NBC 5 Investigates show taxpayers are on the hook for $640 million for the renovation of Soldier Field, twenty years later.

www.nbcchicago.com

 

[remydat]

Yes, you have stated all of this already. You didn’t address anything I said lol

I have you just don't understand.

More likely, is that they have millions upon millions in other investments at this point, plus a business model where they can show ridiculous amounts of revenue and profit from owning the bears…and a bank would likely look at a loan to them as a pretty low risk investment that is likely to yield a nice chunk of money off of interest

I addressed this point. To ensure limited liability the Bears would likely set up an SPV that has the stadium as collateral and thus in the event of default the only assets the bank can draw on to satisfy their money owed to them would be the stadium.

Thus having millions and millions of revenues from running the team is nice but the bank has no legal recourse to compel the McCaskey's to use the money they get from the NFL to pay off the stadium loan.

The other point is that stadiums in and of themselves are not huge money makers because you have to pay for upkeep 364 days but they only make you money for like 20-30 days. This is precisely why most teams chose not to own the stadium so the government can be on the hook.

So it is funny that Bears fans think the McCaskeys are smart enough to succeed at a model that the vast majority of actually smart NFL owners chose not to adopt.

 

[remydat]

They don't have to develop all of the property at the same time, they can build the stadium and parking, then parcel out the surrounding land. This land would see of value increase of 5-10x. They could then sell/lease parcels, while keeping a controlling interest in what is to be built. They can then charge yearly fees for this land as well. There are multiple ways to pull this off.

The problem is your still need money upfront to build a stadium. There is a reason the Bears are only willing to commit 2 billion and want the city for Chicago throw in like 3 billion.

So even if you start with just the stadium in AH, you now need to fund the other 3 billon or so without public funding because the whole premise with AH is to have it privately financed. If the Bears could privately finance a 5 billion stadium they wouldn't be looking to Chicago in the first place.

And again Bear in mind that 2 billion is really 4.4 billion because at any point during the building of this stadium Virgina could die and the Bears would potentially owe 2.4 billion ie 40% on a 6 billion valuation.

 

[remydat]

Just bite the bullet and get a name to sponsor it and therefore pay.

Thinking X stadium for AH, lol

Rams naming rights which I believe are the highest is 30 million a year. Cowboys is 19 million or so. That ain't enough to build a stadium bro.