Default Bills have a huge advantage over most other teams now- $0 debt

[Skooby]

I know it's rarely if ever talked about but many NFL teams carry significant debt, which can hamper their ability to do business and function properly. If you review this article, you'll find that 7 of the top 10 indebted NFL teams are not in the playoffs with most drafting in the top 10. The Jets are the most in debt & obviously have a huge carry cost. Those carry costs usually limit what a team does & their decision making process.

http://www.therichest.com/sports/foo...tios/?view=all

Getting to my point, the Bills have no debt. They have a owner with incredibly deep pockets and a passion to win, at all costs. Ralph Wilson is a hero in my mind but a businessman who's vast major holding was the Bills, so respectfully he wasn't able to go all out to get things done like Terry & Kim. If you also look farther into it, the wealthiest owner in the NFL is Paul Allen who owns the Seahawks, how are they doing now ?

Go Bills !!

[Skooby]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

I figure he netted about $1.5 Billion on that sale after everything, this is just on his sale before buying the team.

[Saratoga Slim]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

He's the in the top 5 richest owners in the NFL according to Forbes.

He's worth $4.5B: http://www.forbes.com/profile/terrence-pegula/

...and that puts him behind only Paul Allen and Stan Kroenke, and in the same ballpark as Malcom Glazier (now dead, this article is from early in 2014 I think) and Stephen Ross: http://www.forbes.com/pictures/eddf4...es-wealthiest/

[Saratoga Slim]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

Hope the drop in oil prices doesn't hurt him too badly.

[Joe Fo Sho]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

Hearing things like this is so weird to me. A welcome change from the days of discussing whether or not the Bills can afford a future in Buffalo.

[IlluminatusUIUC]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

That will change if and when they build a stadium, especially if he does what everyone on here seems to want and privately finances it.

[BleedinGreenNC]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

I know it's rarely if ever talked about but many NFL teams carry significant debt, which can hamper their ability to do business and function properly. If you review this article, you'll find that 7 of the top 10 indebted NFL teams are not in the playoffs with most drafting in the top 10. The Jets are the most in debt & obviously have a huge carry cost. Those carry costs usually limit what a team does & their decision making process.

http://www.therichest.com/sports/foo...tios/?view=all

Getting to my point, the Bills have no debt. They have a owner with incredibly deep pockets and a passion to win, at all costs. Ralph Wilson is a hero in my mind but a businessman who's vast major holding was the Bills, so respectfully he wasn't able to go all out to get things done like Terry & Kim. If you also look farther into it, the wealthiest owner in the NFL is Paul Allen who owns the Seahawks, how are they doing now ?

Go Bills !!

The salary cap determines what the teams can do.

[jamze132]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

The salary cap determines what the teams can do.

To a point, yes.

There is no cap for coaches and bonuses, I believe.

[OpIv37]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

To a point, yes.

There is no cap for coaches and bonuses, I believe.

Coaches do not count against the cap.

Bonuses for players do, but lacking debt means the Pegulas may have an easier time getting that huge up front signing bonuses than some other owners with more liabilities.

One thing to remember though: Pegula needs to buy a stadium, so this situation isn't going to last forever.

[Novacane]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

Why does he need to buy a stadium?

[jamze132]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

Coaches do not count against the cap.

Bonuses for players do, but lacking debt means the Pegulas may have an easier time getting that huge up front signing bonuses than some other owners with more liabilities.

One thing to remember though: Pegula needs to buy a stadium, so this situation isn't going to last forever.

True, but I don't think he's going to hold us hostage over public funds. I think him and Jacobs, as reported, can get a stadium built and still not be in major debt.

[Skooby]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

True, but I don't think he's going to hold us hostage over public funds. I think him and Jacobs, as reported, can get a stadium built and still not be in major debt.

We're getting a new stadium either way.

[YardRat]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

The state and the county are going to have to pony up something if they build anywhere but Orchard Park. The NFL will fund $150mil. I guess I could see Pegs and Jacobs partnering up, but for the life of me I don't know why Terry and Kim would want that...yeah, it's nice to have some funding to help build it, but Jacobs is going to expect a return on his investment and that's just taking revenue (and a certain amount of control) out of the owner's pockets. It will be interesting to see what level of involvement the city gets into, if any.

[stuckincincy]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

I know it's rarely if ever talked about but many NFL teams carry significant debt, which can hamper their ability to do business and function properly. If you review this article, you'll find that 7 of the top 10 indebted NFL teams are not in the playoffs with most drafting in the top 10. The Jets are the most in debt & obviously have a huge carry cost. Those carry costs usually limit what a team does & their decision making process.

http://www.therichest.com/sports/foo...tios/?view=all

Getting to my point, the Bills have no debt. They have a owner with incredibly deep pockets and a passion to win, at all costs. Ralph Wilson is a hero in my mind but a businessman who's vast major holding was the Bills, so respectfully he wasn't able to go all out to get things done like Terry & Kim. If you also look farther into it, the wealthiest owner in the NFL is Paul Allen who owns the Seahawks, how are they doing now ?

Go Bills !!

Heh. The Gov't printing presses are churning out script 27/7. Treasury Dept. issuing and banks gobbling at a tenth of a percent then lending back to the Gov't to keep the charade going. Quantitative easing the likes not seen since FDR made his stab for coronation.

Run up that debt. If you somehow get in a bind, a vote pimp like Chuckie Schumer will come to your rescue.

[notacon]

Re: Default Bills have a huge advantage over most other teams now- $0 debt

I know it's rarely if ever talked about but many NFL teams carry significant debt, which can hamper their ability to do business and function properly. If you review this article, you'll find that 7 of the top 10 indebted NFL teams are not in the playoffs with most drafting in the top 10. The Jets are the most in debt & obviously have a huge carry cost. Those carry costs usually limit what a team does & their decision making process.

http://www.therichest.com/sports/foo...tios/?view=all

Getting to my point, the Bills have no debt. They have a owner with incredibly deep pockets and a passion to win, at all costs. Ralph Wilson is a hero in my mind but a businessman who's vast major holding was the Bills, so respectfully he wasn't able to go all out to get things done like Terry & Kim. If you also look farther into it, the wealthiest owner in the NFL is Paul Allen who owns the Seahawks, how are they doing now ?

Go Bills !!

Sorry, but debt to value ratio, in and of itself, does not indicate ability to compete. In fact, I do not think it means very much at all. Not enough information.

What is the debt used for? How is the debt structured?

The more important stat is what is debt to revenue. Debt to expenses is also important.

If a team invested heavily for a new stadium, and because of their deal stands to reap the majority of income form operating that venue, especially if there is demand for other events...the debt to value of the team ratio is irrelevant, and really, pretty useless to even look at.

Plus, how do you know that the Bills have zero debt?? Businesses borrow all the time. Usually short term debt to help inventory levels and to finance growth.

Don't get me wrong, too much debt can kill a business. The NFL is pretty well insulated from this fear because their income flow is guaranteed.

The most important number for a team like the Bills in a small market is revenue...especially revenue that is not shared. THAT is why the team needs a new stadium.