Paycor Stadium Welcome to the Jungle

[Essex Johnson]

(08-10-2022, 09:58 AM)Southpaw Frerotte Wrote: For any posters on this site, please don't take financial advice from fredtoast.  The last sentence is blatantly false.

Actually that is true a when you buy a bond there is a agreement  that you will still get face value for your bond at maturity .

[grampahol]

(08-09-2022, 09:33 PM)Bengalstripes9 Wrote: I hope the new name has a “boy named sue” like impact, and not a “Charlie brown” like impact. If it does and we get that cash money for improvements… (how else can I polish that turd, hmm). I would have waited for a better offer from a company with a better name like “chase”. Ha, “Chase field”, I could get behind that. The name stinks, but the bottom line is it should have nothing to do with the product on the field.

It'll always be PBS to me, but I don't matter in the grand equation of things. The Brown family was gonna ask my opinion, but at the last minute they decided I'm a nobody.. "Hey! Let's get tickets to CINERGY field to watch the Reds!" said nobody ever.. lol

[Nicomo Cosca]

(08-10-2022, 09:58 AM)Southpaw Frerotte Wrote: For any posters on this site, please don't take advice from fredtoast. 

FTFY

[fredtoast]

(08-10-2022, 09:58 AM)Southpaw Frerotte Wrote: For any posters on this site, please don't take financial advice from fredtoast.  The last sentence is blatantly false.

If a bond's return rate drops below the current market rate then the "current value" of the bond may drop, but you will always receive the full principal if you hold the bond to maturity.

You might be thinking of "bond funds" that rise and fall in "current value" based on the return of the underlying bonds.

[grampahol]

(08-10-2022, 09:58 AM)Southpaw Frerotte Wrote: For any posters on this site, please don't take financial advice from fredtoast.  The last sentence is blatantly false.

I probably won't ask Fred for financial advice, but I damned sure can guarantee 100% you'll never be my financial advisor..
Hey Fred..I need your advice..What are the odds this guy is bankrupt in the next 5 years? 

[Roland]

If it means that Burrow gets paid, I'm fine with it.   But they paid the Bengals to call it Paycor Stadium, not me.   Although I'm amicable at the right price.

[Roland]

(08-10-2022, 11:11 AM)fredtoast Wrote: If a bond's return rate drops below the current market rate then the "current value" of the bond may drop, but you will always receive the full principal if you hold the bond to maturity.

You might be thinking of "bond funds" that rise and fall in "current value" based on the return of the underlying bonds.

What you're saying is only true of secured bonds.   If the entity paying an unsecured bond goes bankrupt you can lose principle.

[Roland]

(08-10-2022, 10:44 AM)Essex Johnson Wrote: Actually that is true a when you buy a bond there is a agreement  that you will still get face value for your bond at maturity .

Again, depends on the bond.  Even with a secured bond if there is a prepayment option they can pay off the bond early at a reduced rate and you don't get face value.

[TecmoBengals]

I don't see anything wrong with the Bengals making this business decision. It's a common practice in the business of sports that the Bengals were late to get onboard with. I hope the extra profit makes it easier to retain or attract the best players to Cincinnati.

[fredtoast]

(08-10-2022, 12:03 PM)Roland Wrote: Again, depends on the bond.  Even with a secured bond if there is a prepayment option they can pay off the bond early at a reduced rate and you don't get face value.

You always get back 100% of principal.

That was the point that started all of this.  You can fund an escrow account with Bonds (AAA rated) because the principal is guaranteed.

[fredtoast]

(08-10-2022, 12:05 PM)TecmoBengals Wrote: I don't see anything wrong with the Bengals making this business decision. It's a common practice in the business of sports that the Bengals were late to get onboard with. I hope the extra profit makes it easier to retain or attract the best players to Cincinnati.

I am getting way OT, but Tecmo's post really explains my basic position.

More money should make the team better.  If the Bengals had done this a few years ago when they refused to build a practice facility or sign big money free agents I imagine a lot more people would have been upset.

[PDub80]

(08-09-2022, 07:22 PM)fredtoast Wrote: You can fund an escrow account with investments as long as the principle is guaranteed.  So they could just invest a hundred million in bonds and use them to fund the escrow account.

What's the point of the above statement? To be contrarian?

You have to have cash to fund the bond. To say that you can do that instead of putting cash into an escrow is moronic.... You STILL HAVE TO HAVE THE CASH. Unless you think the Brown family can borrow 100s of millions without any sort of risk or collateral - such as borrowing against Bengals stock they own or outright selling it off to produce... wait for it... keep waiting... CASH.

[PDub80]

Either way you spin it, Bengals ownership needs more cash. Period. The Amazon deal kicking in, however, will provide plenty of that. Each team gets, what... $3BILLION from that deal when distributed amongst the teams? But that is over a long period of time. A decade. Not fast enough.

The Bengals are cash/revenue stream poor when compared to other NFL teams and ownership. They sat on their asses as business owners for decades, which was enabled by NFL profit sharing. They didn't HAVE to generate revenue outside of basic TV deals and traditional local marketing.

However, the landscape of how much it costs to fund an NFL roster and how much cash is needed by the business doesn't lend itself to the Brown family's past modus operandi.

I wish the Bengals take a page out of the Cowboys book and make the practice building a unique fan experience. A restaurant or unique concessions, a post game hangout, the ability to come watch practices, eat, drink, etc. Watch the players work out, blah blah blah would all generate plenty of revenue. But things like this are progressive and that isn't the Bengals way. They will probably just build a modest practice facility that meets the bare minimum under the idea of "A penny saved is a penny earned". The Bengals are basically the Frisch's Big Boy of NFL franchises. Instead of spending the last 20 years figuring out how to improve food quality, innovate the menu, find better service options, and drive more traffic - they worked on reducing food costs and cutting labor.

The team has missed an ABSURD amount of business cashflow opportunities over the last 20 years and are now feeling the pains of short sightedness. The team's financial goals have always been to just provide enough cash at year's end for the family to have a truck full of money. That's small business thinking left over from Paul/Mike Brown's era of NFL.

No business in history has ever won the race to zero. The Bengals are figuring that out now, the hard way. The stadium naming rights should have been first sold after the 2005 season.

[*pally*]

would you buy a letter if they auctioned off the signage?

The letters are coming down as we speak.#Bengals stadium is no longer Paul Brown Stadium.@WCPO pic.twitter.com/Epcg6HAnyr

— Caleb Noe (@CalebNoeTV) August 10, 2022

[fredtoast]

(08-10-2022, 12:24 PM)PDub80 Wrote: What's the point of the above statement? To be contrarian?

You have to have cash to fund the bond. To say that you can do that instead of putting cash into an escrow is moronic.... You STILL HAVE TO HAVE THE CASH. Unless you think the Brown family can borrow 100s of millions without any sort of risk or collateral - such as borrowing against Bengals stock they own or outright selling it off to produce... wait for it... keep waiting... CASH.

The Browns family has collected hundreds of millions of dollars in salary from the Bengals over the years.

Plus they own an asset worth over $2 BILLION dollars.

They could easily come up with a couple of hundred million dollars to invest in bonds and fund an escrow account.  It is not like they have to BUY something and lose the use of the money.  They can invest the money and receive a return while it is in the escrow account.

[*bfine32*]

(08-10-2022, 01:40 AM)fredtoast Wrote: Because you might learn how businesses with a net worth in the billions could create funds for an escrow account.

I'll save you the time of having to give me a lesson on business finance and just go with what I know. I'll just have to live with my ignorance that the most secure way to guarantee any investment is with cash and be less learned than you. I'll see if I can find out why my stock "cash account" has much more flexibility to make me money as opposed to those that must leverage.

Sure the Browns most likely could leverage everything they own to secure escrow once. I'll just leave it to smarter guys such as yourself to tell everyone how this would not be so much easier with liquidity and various revenue streams

[*bfine32*]

(08-10-2022, 12:24 PM)PDub80 Wrote: What's the point of the above statement? To be contrarian?

You have to have cash to fund the bond. To say that you can do that instead of putting cash into an escrow is moronic.... You STILL HAVE TO HAVE THE CASH. Unless you think the Brown family can borrow 100s of millions without any sort of risk or collateral - such as borrowing against Bengals stock they own or outright selling it off to produce... wait for it... keep waiting... CASH.

Leave EF Hutton alone. He's being kind enough to share his financial acumen with the group

[*pally*]

(08-10-2022, 01:48 PM)bfine32 Wrote: Leave EF Hutton alone. He's being kind enough to share his financial acumen with the group

Because the world knows that "when EF Hutton speaks people listen"

[*bfine32*]

(08-10-2022, 02:13 PM)pally Wrote: Because the world knows that "when EF Hutton speaks people listen"

Now we're just showing our age..

[*pally*]

(08-10-2022, 02:20 PM)bfine32 Wrote: Now we're just showing our age..

lol

Speak for yourself...I just like learning about olden times