LakeCharles wrote:Sorry to extend this longer than necessary, but the Wilfs did not put up a "ton" of their own money. The team put in $600 million. US Bank paid them $230 million for naming rights. The entrances and clubs naming rights brought in another $110 million. The NFL gave them an interest-free loan over 20 years of $150 million. The Wilfs put in the remaining $110 million. And the valuation of the team jumped up $700 million. So they made a business investment with an ROI of 535%. Yes, $110 million is a lot, but if someone offered you a deal to pay $110 and get $700 back immediately, anyone would take it.
I don't know why people keep doing this. Setting aside the NFL loan, any money that would otherwise have gone into the Wilf's pocket is there money. If I purchase a rental property and use the rental income to pay the mortgage, is that somehow not my money? If I sign a lease for a cell tower on the roof and put that money told the down payment, is that not my money? Of course not. You're just complaining about my capital structure.
And, of course, it's a reasonable bet that even the $110 million you're crediting was borrowed. If so, does that mean they put in zero of their own dollars? Of course not.
As to the NFL loan, I think I read there were ways for that to be forgiven or paid off out of NFL funds, so maybe that's not their money to the extent they won't have to pay it back.