Bengals investing in Paycor Stadium

[WeezyBengal]

(05-22-2024, 11:09 AM)Bengalbug Wrote: Do you understand capital planning?  Just because you have identified $500m you need over 20 years doesn’t mean you need it all now.  This would be what you could call round 1.  In 2-3 years, once the lease is agreed upon, likely another round of funds released.  This is a fairly common business practice.


What is Long-Range Capital Planning?
At its core, long-range capital planning is the process of identifying, prioritizing, and budgeting for major infrastructure projects and capital expenditures that will be required in the future. This typically spans a horizon of five to ten years, or even longer, and takes into account both current needs and future growth.

Why is it Important?
Forward Thinking & Proactivity: Instead of reacting to problems as they arise, long-range planning allows for a proactive approach. By anticipating future challenges, the department can allocate resources efficiently, reduce crisis-driven spending, and ensure the timely replacement or renovation of aging infrastructure.
Financial Stability: Infrastructure projects are costly. By planning and budgeting for these expenses years in advance, the department can establish funding strategies, whether through grants, bonds, or other financing options. This spreads out costs, avoids sudden spikes in expenditure, and can lead to better financial rates and terms.

You're missing the point of where the money's coming from. Just because they have an initial investment of 100 million doesn't mean they are going to invest further money into "capital planning".