Mike is setting everyone up for heartache

[Whatever]

(03-28-2017, 01:01 PM)OrlandoBengal Wrote: I agree that owners should be able to move their teams, especially if they build and own their own stadiums (doing so would also drastically increase the value of each team).

What makes you think Mike Brown, or any other owner, would not be able to finance their own stadium?  Mike Brown owns an asset, the Bengals, that is valued at $1.6 billion.  An asset that generates hundreds of millions of dollars in revenue each and every year, a revenue stream that is guaranteed.  Based just off this, without even thinking about his personal wealth, you don't think almost any bank would be lined up to provide financing?  They would be fighting for the deal.

The franchise is worth $1.6 billion and a new stadium will be a minimum of $700 million, almost half of the team's value.  On top of that, think about how much interest he would pay on that $700 million dollar loan over 20 years or so.  He could probably do it if he had to, but it would greatly hurt the team's profitability.

But that leads to the next question.  If he's paying for the stadium, why would he build it in Cincinnati?  He'd be an idiot to do so.  With the current regime, he typically puts an above average product on the field, has the 3rd lowest ticket price and cheapest stadium experience in the league, and still can't fill the current stadium.  Not only would he likely sell out in a new market, he could also raise ticket prices and make more than in Cincinnati.

The reality of it is, building stadiums is the small market's way of making up for lost revenue compared to large ones.