What will the Bengals stadium be named? Wrong answers only

[Cincyfan78]

I agree 100%. Cash-poor teams are going to be strapped by the escrow requirement. I feel like that provision must have been put in place to discourage owners from offering guarantees. Almost a way for owners to protect themselves against themselves. But the problem is that now we have owners that have extreme wealth from other sources. Liquid assets aren't as difficult to come by for some of these guys.

Yeah, I have to wonder, if the guarantees increase - what can smaller market teams that don't have that cash on hand do?

Maybe there is a provision that allows certain teams to not have cash on hand if they can show a certain balance sheet over X amount of years for revenue - basically showing that they have a history of financials that shows they will have that money in the future...risky proposition, though, but the NFL could also step in and absorb any potential loss/issue. There would, obviously, be repercussions for failing to be able to pay debts - either suspending their ability to offer higher guarantees, to having to sell the team....

Not sure what the answer is - but it is 100% going to force these smaller market teams, or owners who own a team as their sole means of what they actually make their money from, to find new avenues/ways to generate revenue (i.e. giving in on naming rights).

 

[cincygrad]

Yeah, I have to wonder, if the guarantees increase - what can smaller market teams that don't have that cash on hand do?

Maybe there is a provision that allows certain teams to not have cash on hand if they can show a certain balance sheet over X amount of years for revenue - basically showing that they have a history of financials that shows they will have that money in the future...risky proposition, though, but the NFL could also step in and absorb any potential loss/issue. There would, obviously, be repercussions for failing to be able to pay debts - either suspending their ability to offer higher guarantees, to having to sell the team....

Not sure what the answer is - but it is 100% going to force these smaller market teams, or owners who own a team as their sole means of what they actually make their money from, to find new avenues/ways to generate revenue (i.e. giving in on naming rights).

The idea that they need this kind of money in escrow is really ridiculous to begin with. Player salary is subject to cap, which is basically paid out by the TV deal. For the cap to drop enough to not be able to cover a guarantee, something catastrophic would have to happen. An owner being able to cover a guarantee from money that they are almost 99.9% certain to have is one of the easiest guarantees in all of finance.

In a lot of ways this mirrors what is happening with wealth in this country. The super rich now occupy a demographic that makes the very rich seem 'cash-needy.' Fans aren't going to want to hear that the local owner doesn't have money to put into escrow, but the truth is that this will be a very real scenario for several teams - Even teams that haven't been accused of being historically cheap.

 

[futballiscool]

It will always be THE PAUL to me

 

[Debbie Does]

With a nod to tradition, the Red Rocket Stadium.

 

[fastforward]

The Cincinnati House of Particular Individuals.

 

[Schmoopy1000]

House of the Terrible Towel!

 

[Red_Chaos]

Carole Baskin’s Big Cat Rescue Stadium