BAMAPHIN 22
FinHeaven Elite
The NFL told its owners at their fall meeting that the planned stadium for the New York Jets and Giants would cost the league's other 30 clubs $914 million in labor and subsidy expenses over the first 15 years of the new venue.
According to an NFL owner, team sources and other sources with knowledge of the numbers, some of whom were in the room and none of whom would consent to be named for this story, the league also said that the two New York teams would enjoy combined cash flow after debt of $1.1 billion over that time frame.
The presentation, which came at the NFL owners meeting in New Orleans, could imperil the two teams' request for $300 million of stadium grants from the NFL's venue financing pool, which is critical if the clubs are to privately finance the $1.2 billion building. The NFL's economic system, however, could be working against such an approval, providing the latest stumbling block to a project the teams hope to open in 2010.
Under the league's economic system, much of the money generated from the new stadium would count toward the league's salary cap, which would increase labor costs for all teams, while the Jets, Giants and NFL players would receive the bulk of the benefits.
While it is true that all new stadiums built in the NFL benefit the players and the team doing the building at the expense of the other clubs, that effect would be magnified in the planned New York stadium, which is projected to generate more revenue than any sports venue ever built. In fact, the NFL told owners that the facility would cost the rest of the league nearly as much as all 10 of the stadiums already funded through the NFL stadium pool, the sources said.
http://www.netscape.com/viewstory/2006/11/13/jets-giants-stadium-causes-fret-for-other-nfl-teams/?url=http%3A%2F%2Fwww.msnbc.msn.com%2Fid%2F15695417%2F&frame=true
According to an NFL owner, team sources and other sources with knowledge of the numbers, some of whom were in the room and none of whom would consent to be named for this story, the league also said that the two New York teams would enjoy combined cash flow after debt of $1.1 billion over that time frame.
The presentation, which came at the NFL owners meeting in New Orleans, could imperil the two teams' request for $300 million of stadium grants from the NFL's venue financing pool, which is critical if the clubs are to privately finance the $1.2 billion building. The NFL's economic system, however, could be working against such an approval, providing the latest stumbling block to a project the teams hope to open in 2010.
Under the league's economic system, much of the money generated from the new stadium would count toward the league's salary cap, which would increase labor costs for all teams, while the Jets, Giants and NFL players would receive the bulk of the benefits.
While it is true that all new stadiums built in the NFL benefit the players and the team doing the building at the expense of the other clubs, that effect would be magnified in the planned New York stadium, which is projected to generate more revenue than any sports venue ever built. In fact, the NFL told owners that the facility would cost the rest of the league nearly as much as all 10 of the stadiums already funded through the NFL stadium pool, the sources said.
http://www.netscape.com/viewstory/2006/11/13/jets-giants-stadium-causes-fret-for-other-nfl-teams/?url=http%3A%2F%2Fwww.msnbc.msn.com%2Fid%2F15695417%2F&frame=true
