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Panthers seek $7.7M loan from Broward County for arena upgrades

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Old
11-11-2011, 03:27 PM
  #26
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A loan is not a gift, it is to be repaid. Nothing wrong here.

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11-11-2011, 03:33 PM
  #27
Predatorbill
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Do they receive a lower interest rate if the loan is through the county?

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11-11-2011, 03:36 PM
  #28
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Probably, but they also are big time business, this is normal.
A big time business staying in town will more than be able to pay it back through revenues and sales tax.
We are talking 7 million, even if they pay 0 interest directly, they make it up for it with tax revenue.

70 or 700 million is another story, but 7 million not that big at the macro level.

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11-11-2011, 09:31 PM
  #29
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Quote:
Originally Posted by Greenpuck View Post
A loan is not a gift, it is to be repaid. Nothing wrong here.
True, but they have to be able to repay it. I can't imagine the Panthers make money with the abysmal attendance they generally have.

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11-12-2011, 11:50 AM
  #30
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Originally Posted by Green Men Rule View Post
True, but they have to be able to repay it. I can't imagine the Panthers make money with the abysmal attendance they generally have.
Attendance is pretty good (avg >15000), but ticket prices are low, even now you can buy season tickets at 50% discount. Question is if fans are willing (or if they can) pay higher prices in future, economy in South Florida is bit suckish (main industry, real estate, is down and will stay down for a long time)

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11-13-2011, 12:10 AM
  #31
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They can repay a meger $7 million loan.

$70 million, not that would be hard........

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11-13-2011, 10:10 AM
  #32
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Quote:
Originally Posted by mucker* View Post
They can repay a meger $7 million loan.

$70 million, not that would be hard........
From earlier post:
"Mayor Gunzberger - Yea - Beach renourishment important. Grilled Yormark about future overall profitability raised by Holness and the increased returns. Yormark still wants to confer with ownership before committing to such requests. Asked to wait till Commission gets assurance on that, then they get their loan, Yormark said no. Stressed they need the money now. Said to assume that in the future there will be a conversation regarding that if they get a Yea today. "

Repaying shouldn't be a problem, they can always get another loan from county.

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11-13-2011, 05:36 PM
  #33
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this will not end well for the panthers

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11-13-2011, 06:50 PM
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Originally Posted by TheStig View Post
this will not end well for the panthers
Why is that?

I gotta chuckle outta the whole curtain business though...

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11-13-2011, 08:21 PM
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Quote:
Originally Posted by mucker* View Post
They can repay a meger $7 million loan.

$70 million, not that would be hard........
IMO, one has to wonder... if $7.7 million is a meger amount, why would they be borrowing it in the first place? And with such impatience?

Is there a lack of wherewithal to fund the capital improvements internally?

Something in the League By-Laws that prohibits an advance on Revenue Sharing monies specifically for capital improvements of this type (Club Red / Lower suite renovations)?

Sure the interest rate is 4% and they lowered the payback thresh hold to the County from $12 to $10 million and increased the % to 30 from 20 but, why the urgency to receive it now? Against the wishes of the #2 industry behind Real Estate, Hotel and Hospitality... which is also dependent on the TDT?

Easier to borrow from the County at a better interest rate and less hassle than a typical lender I guess.

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11-14-2011, 02:50 AM
  #36
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Originally Posted by Major4Boarding View Post
Easier to borrow from the County at a better interest rate and less hassle than a typical lender I guess.
But does the lower interest rate count as HRR as per thread http://hfboards.com/showthread.php?t=1028571? There is a precedent in the difference in cost of below-market-rate loans to employees being considered taxable income.

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11-14-2011, 01:29 PM
  #37
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Originally Posted by knorthern knight View Post
But does the lower interest rate count as HRR as per thread http://hfboards.com/showthread.php?t=1028571? There is a precedent in the difference in cost of below-market-rate loans to employees being considered taxable income.
No. There is nothing in Article 50 which would consider the loan to be HRR if and as long as the money is paid back.

The only way that a loan from the city would be considered HRR would be if:
1. There was an agreement that all or a portion of the loan would be forgiven (and not repaid), and
2. That money forgiven is explicitly used for operating expenses of the Club.

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01-19-2012, 02:55 AM
  #38
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Loan not a done deal yet:

Quote:
Panthers deal enriches arena operator, not Broward, county auditor charges

By Brittany Wallman, Sun Sentinel
9:26 p.m. EST, January 17, 2012

Broward County has gotten the short end of the stick in its financial deal with the Florida Panthers, and a proposed loan would only tip the scales further, the county's auditor charges.

To date, the county has paid more than $90 million for the arena that serves as the Panthers' home, and gotten back just $331,000 in profit-sharing.

The Panthers side of the scoreboard is far brighter, according to county records. Since the doors at BankAtlantic Center opened 13 years ago, Arena Operating Co., the Panthers' sister company that runs the arena, has rung up a reported $117.4 million in profits. That's more than 353 times what the county has banked.

Now, the county is poised to lend the National Hockey League club's sister company $7.7 million to renovate the arena in Sunrise. But the deal being proposed is "lopsided,'' "misleading,'' an "illusion'' put before taxpayers, County Auditor Evan Lukic said.

"It is really, really troubling,'' Lukic said in an interview Tuesday. "This is not a good deal.''

Lukic's biting financial analysis derailed a County Commission vote last week on the loan, and provided fresh fodder for the debate about whether Broward's subsidy of a professional hockey franchise has been a good deal for taxpayers.
Further...

Quote:
Yormark called the auditor's analysis "accurate,'' from a "mathematical perspective.'' But he said the chief value of the arena to Broward taxpayers is intangible and has little to do with profits. It's the benefit of having one of the top entertainment venues in the country here in Broward, Yormark said, and a professional sports franchise as well. It's the 200 to 250 construction jobs associated with the renovation, and the 125 permanent part-time jobs and 10-15 full time that would be added to the arena payroll. It's the bonus of having a county facility kept in top condition.

His plans call for reconfiguring the seating, breaking some of the suites into mini-suites, and creating a members-only club for ticket holders who attend every event year round...

It's good for us. It's good for the county. It's good for the taxpayers,'' Yormark said.

The Panthers aren't raking in millions, he said. In fact, Yormark said the team "has had significant losses'' financially. The Panthers and Arena Operating Co. are part of the same parent company, Sunrise Sports and Entertainment...

The County Commission will reconsider whether to grant the Panthers the new loan on Jan. 31.
http://www.sun-sentinel.com/fl-arena...1.story?page=1

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