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Forbes - Redskins Fall To 8th Most Valuable Sports Franchise

tshile said:
That doesn't even make sense to me. How do you build a huge structure on land you don't own? What happens when the lease for the land is up and they move? Are they going to tear down their stadium? Can they rent/lease the stadium for events when they don't own the land they're on? Will PG county force them to pay taxes on the structure they can't do anything with? If they lose rights to the land do they lose rights to the structure?

Seriously how does that work...
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Its pretty standard - ever lived in a condo? Same principle - you own the building, but are 'leasing' the land. A lot of times they will get a sweetheart deal with the city like in New Orleans - the owner of the Saints pays the city like $1 a year rent for all of his properties there, because they know that football brings a lot of money to the city.
 
Neophyte said:
Like it or not, it is the sport of the world. As such, the big European clubs how a leg up on any team from a US sport as soccer's global appeal means that they will sell logo'd gear the world over while most US sports franchises have to settle for the bulk of their sales being US based. Shoot, I have friends here in TX who own as much Man U gear as they do Cowboys gear and a buddy who is a Skins fan but owns more Arsenal gear. I myself was considering a Tottenham jersey for the upcoming EPL season until they changed kit sponsors (I refuse to wear anything with the HP logo on it).

In the face of that, American football can only really be king of North America and our most profitable franchises will always lag behind orgs like Man U and Real Madrid.
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Yeah, yeah, yeah. I know. I just don't like it! ;)
 
Lanky Livingston said:
Its pretty standard - ever lived in a condo? Same principle - you own the building, but are 'leasing' the land. A lot of times they will get a sweetheart deal with the city like in New Orleans - the owner of the Saints pays the city like $1 a year rent for all of his properties there, because they know that football brings a lot of money to the city.
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No, I've never lived in a condo but I certainly understand the arrangement.

The difference here is we're not talking about a 2 bedroom 2 bath apartment-style living area 5 minutes outside of the nation's capital that is marketable.

We're talking about a 75,000 seat stadium. There isn't a whole lot of market for that. So either the redskins never move, or they just write off the cost? PG county is not ever going to get a new football team. The baseball team has a new stadium already, and it's entirely too large for the soccer team. So who the hell is going to play there when the redskins move in 14 years? When they do move, if they can't sell it, they'll just have to continue to pay taxes on a stadium they never use?
 
tshile said:
No, I've never lived in a condo but I certainly understand the arrangement.

The difference here is we're not talking about a 2 bedroom 2 bath apartment-style living area 5 minutes outside of the nation's capital that is marketable.

We're talking about a 75,000 seat stadium. There isn't a whole lot of market for that. So either the redskins never move, or they just write off the cost? PG county is not ever going to get a new football team. The baseball team has a new stadium already, and it's entirely too large for the soccer team. So who the hell is going to play there when the redskins move in 14 years? When they do move, if they can't sell it, they'll just have to continue to pay taxes on a stadium they never use?
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Right, but a marketable 2/2 doesn't generate billions of dollars in revenue, either. I'd imagine if they move, they'll sell it back to the city, or some other investors. Or maybe they'll hook up a bunch of helium balloons and take it with them. :D
 
Why would PG county help the redskins move by buying the stadium from them?

That's what I mean, the team put itself at a huge disadvantage by setting this up that way... the only way out is to either give it to PG county, demolish it, or pay millions a year in taxes to sit empty. None of which sounds particularly good.

Unless they can somehow screw over PG county by getting them to purchase it so they can leave? I don't have the most respect for the people running PG county but that seems like a new level of dumb...

Maybe I just don't get it.
 
tshile said:
Why would PG county help the redskins move by buying the stadium from them?

That's what I mean, the team put itself at a huge disadvantage by setting this up that way... the only way out is to either give it to PG county, demolish it, or pay millions a year in taxes to sit empty. None of which sounds particularly good.

Unless they can somehow screw over PG county by getting them to purchase it so they can leave? I don't have the most respect for the people running PG county but that seems like a new level of dumb...

Maybe I just don't get it.
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It won't "sit empty." There will still be NCAA games, concerts, etc. being held there, so there's that. So that's why PG county (or some other investors) would buy it, so they would get all the revenue from those events. And they wouldn't pay "face" value - most of the value is tied into the Redskins playing there - but they factor that in when they first build it. They have to sell so many tickets, sell so many $9 bud lights, etc. in order to break even and start making a profit on the stadium - I'd imagine that number was hit in the first couple of years, and its all pure-profit now.

EDIT: Remember, this is a business; the only reason most NFL teams DON'T do this, is because they don't have the capital or their owners are too cheap to put it up. Jerrah Jones spent $1.8 BEEEEEEELLLLION on Jerryworld - that thing is a cash cow for him now. Just prints money.
 
Does Jerry own the land its on though?

In 14 years, 2027, when the lease is up, how can the redskins host any events at the stadium if they no longer have an active lease on the land it sits on?

they would have to renew the lease. what happens if they can't come to an agreement?

sorry, i don't know why i'm having such a hard time wrapping my head around this.

don't get me wrong, I understand how PG county makes out like bandits. I don't understand how the redskins could ever really move?
 
tshile said:
Does Jerry own the land its on though?

In 14 years, 2027, when the lease is up, how can the redskins host any events at the stadium if they no longer have an active lease on the land it sits on?

they would have to renew the lease. what happens if they can't come to an agreement?

sorry, i don't know why i'm having such a hard time wrapping my head around this.

don't get me wrong, I understand how PG county makes out like bandits. I don't understand how the redskins could ever really move?
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I'm saying the construction of FedEx field has already been paid off at this point, and the stadium is a pure revenue generator at this point for Dan. If they so feel the need to move, he'll go somewhere else and build another one, which will be paid off in a few years and become another revenue generator for him. If they can't come to an agreement in 2027, they write it off and demolish the building, or give it to the city and let them demolish it, its that simple.
 
Got it.

I guess the trouble I was having was with the idea that Snyder would look at a multi-hundred-million-dollar building and go '**** it, knock it down' and leave. But I suppose it's the cost of doing business.

I mean, to be fair, this is the same guy that wont let you bring peanuts in the stadium that you bought from his vendor at just outside the gate, or wont let you bring in a little juice for your kid. Dude's kind of a prick when it comes to money. ;)
 
For example - the Redskins gained $400M in value over the past year. I think FedEx cost him $800M to build - so in just a year, he gained half the value of the stadium! So, imagine what has happened in the 14 years since he built it. He's just printing money with it at this point, getting rid of it is a calculated write-off. I'm sure they had several strategies for 2027 in place before they even broke ground.
 
Yeah.

Though I don't think the stadium was 800, the team was 850 when snyder bought it I believe. The stadium was apparently $250 million.
FEDEX FIELD

So yeah...

I'm curious how much Snyder see's a year from team revenue since he bought the team with investors money (I imagine they see quite a big percentage)
 
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