NFL facing the high costs of Jets-Giants plan

BAMAPHIN 22 · 11-13-2006, 11:59 AM

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/20...%2F&frame=true

Roman529 · 11-13-2006, 04:35 PM

Why do the other NFL clubs have to "pony up" for the Jets and Giants? I would tell the Jets to go back to playing at Shea Stadium, and let the Giants renovate the Meadowlands on their own. :mad: Let their owners fix their mess.

DolfanDaveInATX · 11-13-2006, 09:59 PM

Actually, the rest of the league will have to "pony up," regardless of whether the league provides the construction loan to the New York teams. The stadium will be built, and when it is, the revenue for the Jets and Giants will skyrocket, increasing the amount of total team revenues that have to be shared with the players. By my math, each team's salary cap will increase about $2-3 million per year just from the opening of the New Giants Stadium, even though the other teams won't directly share in the Jets and Giants revenue.

11-13-2006, 04:35 PM	#2
Roman529 Moon Runner / The 3 AM Crew Join Date: Jul 2004 Location: Colorado Springs, CO Posts: 25,011 Thanks: 91 Thanked 313 Times in 238 Posts	Why do the other NFL clubs have to "pony up" for the Jets and Giants? I would tell the Jets to go back to playing at Shea Stadium, and let the Giants renovate the Meadowlands on their own. :mad: Let their owners fix their mess. __________________

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11-13-2006, 09:59 PM	#3
DolfanDaveInATX 2008 AFC East Champions! SUCK IT, BRADY! Join Date: Apr 2003 Location: Austin, TX Posts: 3,642 Thanks: 15 Thanked 59 Times in 30 Posts	Actually, the rest of the league will have to "pony up," regardless of whether the league provides the construction loan to the New York teams. The stadium will be built, and when it is, the revenue for the Jets and Giants will skyrocket, increasing the amount of total team revenues that have to be shared with the players. By my math, each team's salary cap will increase about $2-3 million per year just from the opening of the New Giants Stadium, even though the other teams won't directly share in the Jets and Giants revenue.