10-06-2016, 10:05 AM
(Do you like how I managed to sneak Hitler into the discussion?)Â That's OK. We all hate Hitler and we all hate Kal.
But going back to the run-up to the renovation the financial delusion was palpable and reasonable people within the Kal community and outside were vocal skeptics. The financial underpinnings, IIRC, were based on three main things to make the plan "viable" (in quotes because associating the common meaning of "viable" was a stretch). Those were:
-- Projections of greatly increased athletic donor support. Even Kal people were saying at the time they had pulled the desired increase projection out of an orifice located half way down/up the human body. They seemed to be dialing the amount of increased projected giving to match the needs of the financial package.
-- A massive re-fi at some point. I'm not sophisticated enough to know how the mechanics of this works. Overall interest rates are lower now than when Kal's plan was put together, but how much that affects the overall burden on Kal going forward I don't know. It's possible that financial types that know how it works might not offer the refi rates needed to make the debt relief that meaningful.
-- Sponsorship rights to the stadium sold. Kabam!! Done. Well, the expanse of the actual playing field is Kabam field. But you knew that already. It was right on the tip of your tongue. But there's nothing on the scale of Century Link Field, FedEx Field, or Edward Jones Dome. But it's $18 million that they didn't have before...but spread out over 15 years. Suddenly it looks less significant in making their $23.7 million dollar annual costs and debt service.
But going back to the run-up to the renovation the financial delusion was palpable and reasonable people within the Kal community and outside were vocal skeptics. The financial underpinnings, IIRC, were based on three main things to make the plan "viable" (in quotes because associating the common meaning of "viable" was a stretch). Those were:
-- Projections of greatly increased athletic donor support. Even Kal people were saying at the time they had pulled the desired increase projection out of an orifice located half way down/up the human body. They seemed to be dialing the amount of increased projected giving to match the needs of the financial package.
-- A massive re-fi at some point. I'm not sophisticated enough to know how the mechanics of this works. Overall interest rates are lower now than when Kal's plan was put together, but how much that affects the overall burden on Kal going forward I don't know. It's possible that financial types that know how it works might not offer the refi rates needed to make the debt relief that meaningful.
-- Sponsorship rights to the stadium sold. Kabam!! Done. Well, the expanse of the actual playing field is Kabam field. But you knew that already. It was right on the tip of your tongue. But there's nothing on the scale of Century Link Field, FedEx Field, or Edward Jones Dome. But it's $18 million that they didn't have before...but spread out over 15 years. Suddenly it looks less significant in making their $23.7 million dollar annual costs and debt service.