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Jets-Giants Receive $300 million; New Stadium in 2010.
Topic Started: Dec 7 2006, 07:33 PM (288 Views)
NYJ EcKo151
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http://www.bloomberg.com/apps/news?p...refer=amsports

Giants, Jets Receive $300 Million in NFL Stadium Loan (Update1)

By Aaron Kuriloff

Dec. 7 (Bloomberg) -- The New York Giants and Jets received approval for $300 million in National Football League loans toward a shared $1.2 billion stadium in the New Jersey Meadowlands.

Representatives of the league's teams, meeting in Dallas, voted 30-2 to grant each New York franchise $150 million through a program that provides financing for stadium construction, Giants co-owner Steve Tisch said in an interview. No other single project has received more than $150 million since the NFL's program began in 1999.

``With no other obstacles, we're in good position to break ground in the spring,'' Tisch said.

The Jets-Giants request risked being the first that the owners rejected. Some owners were concerned that increased revenue from the new stadium, once added to the players' salary pool, would boost payrolls for all teams. Owners of both teams said the privately financed stadium was contingent on the $300 million NFL contribution.

The NFL players union said this week it was willing to cut the salary ceiling by $800 million over 15 years to reduce the stadium's impact on other teams. It said a new facility would raise salaries by around $2 million a year.

With financing secure, the next step for the stadium project is an environmental-impact hearing Dec. 13-14 before two New Jersey state commissions.

Share Stadium

The Giants and Jets said they should get twice the usual loan because they are the only NFL teams sharing a facility. They agreed to split the costs of replacing 30-year-old Giants Stadium in East Rutherford, New Jersey, after the Jets were unable to get public funding for a stadium on Manhattan's West Side.

The teams' plans call for building an 84,000-seat stadium next door to Giants Stadium, with a footprint of about 630,000 square feet, according to a document submitted to the New Jersey Department of Environmental Protection and the Meadowlands Commission, which will hold the hearings next week.

The Giants plan to build a 20-acre training facility 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.

Playing in the U.S.'s largest market, the Giants had annual revenue of $182 million, according to a 2006 listing by Forbes magazine, while the Jets had about $179 million. The Washington Redskins led the league, with $303 million.

Revenue

A new stadium might help both New York teams generate more money from skyboxes, luxury seating, parking, concessions and naming rights, even after borrowing for construction, said Craig Depken, who teaches sports economics at the University of Texas, Arlington.

Depken said the average NFL team gains about $20 million in profit annually from a new stadium.

``I imagine at current rates, the debt will be something like $20-25 million a year, so they'll need to get more than the $20 million league average,'' Depken said. ``I have no doubt they'll get it.''

The teams may make more money, and help pay for the stadium, by selling seat licenses, a one-time fee for a transferable permit to buy tickets, said Max Muhleman, president of Private Sports Consultants in Charlotte, North Carolina, who has worked on stadium projects for the Carolina Panthers and other NFL teams.

``They receive ownership or equity in their seats that can be transferred or sold if they wish,'' Muhleman said. ``This is not a front-burner need, but it could contribute a significant amount of capital, around $90 or $100 million.''

Revenue Restrictions

Other teams don't share in local revenue that new stadiums generate, such as money from luxury seats, skyboxes, parking and naming rights. Because the NFL's labor agreement calculates the salary ceiling as a percentage of total league revenue, the new stadium also will raise player salaries for all teams.

Ralph Wilson, owner of the Buffalo Bills, was one of two owners to vote against the labor agreement in March 2006. U.S. Senator Charles E. Schumer, a New York Democrat, joined Wilson in an Oct. 10 news conference saying the agreement threatened the NFL's competitive balance because it left teams such as Buffalo with income pegged to the local economy and expenses dictated by teams in bigger markets such as New York City, Washington or Dallas.

Gene Upshaw, president of the National Football League Player's Association, said this week that the union would accept an $800 million cut over 15 years in the salary limit -- $102 million per team this season -- in order to alleviate concerns about labor costs to other teams.

Cowboys owner Jerry Jones also said in an interview in October that owners were working to mitigate revenue differences and called giving the Giants and Jets $300 million a ``reasonable approach.''

``I think we are working and have worked with the player's association to mitigate that revenue so it can take steps to clear the way for a new stadium,'' Jones said.

To contact the reporter in this story: Aaron Kuriloff in New York at akuriloff@bloomberg.net

Sweet! No more "sharing." No more "Giants Stadium" No more red seats...No more tennants!

Would of loved Queens but this is fine, everything will be 50/50 the only advantage is the Giants get a practice facility outside the current stadium, i'll live.

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Giambi_MVP_25
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Should still be our stadium.
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NYJ EcKo151
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Giambi_MVP_25
Dec 7 2006, 09:32 PM
Should still be our stadium.

:D Nope. 3 more years until "Giants Stadium" is no more...
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Giambi_MVP_25
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>:o
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Venom
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Where did it say it wouldn't be called "Giants Stadium," and that the seats wouldn't be red?

I skimmined through it and didn't see anything saying that.
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NYJ EcKo151
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Venom
Dec 7 2006, 11:41 PM
Where did it say it wouldn't be called "Giants Stadium," and that the seats wouldn't be red?

I skimmined through it and didn't see anything saying that.

Gimmie a break...Do you HONESTLY think that the Jets would of agreed for it to be called "Giants Stadium?" And these days all these sponsored stadiums? Maybe Trojan Stadium?

The seats will not be red, lets be real. My guess would be white seats.

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Giambi_MVP_25
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White seats? :-|
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Giambi_MVP_25
Dec 8 2006, 12:20 AM
White seats? :-|

Would be my guess.

Who knows. But 84,000 seat stadium, that'll make the wait list people very excited. But alot of uproar about the PSLs...

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NYJ EcKo151
Dec 7 2006, 10:51 PM
Venom
Dec 7 2006, 11:41 PM
Where did it say it wouldn't be called "Giants Stadium," and that the seats wouldn't be red?

I skimmined through it and didn't see anything saying that.

Gimmie a break...Do you HONESTLY think that the Jets would of agreed for it to be called "Giants Stadium?" And these days all these sponsored stadiums? Maybe Trojan Stadium?

Give you a break about what? Nowhere in that article does it say that the Giants and the Jets have to agree on a name. It doesn't say that the Giants have the right to name the stadium, and it doesn't say the Jets have the right to name the stadium, it doesn't say anything about it at all.

I'm not saying it's going to be called Giants Stadium, I really don't care. They could call is Chia Pet Stadium brought to you by Aqua Velva for all I care. It doesn't matter to me. I'm just saying that I don't know what you saw in that article to get all excited and giddy about. "OMG no more Giant Stadiumz!!!!!111 :D "
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NYJ EcKo151
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I'd bet my house that it will not be named Giants Stadium...The Jets didn't make this deal without having any clearance that it would be named Giants Stadium...

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Venom
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Ok Woody Johnson.
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