Yankee Debt

[a700hitter]

Maybe the Yanks do not have an endless supply of money.

 

http://www.nypost.com/p/news/business/no_harm_no_foul_y7JthChjRtpTerNOPTgo0J

[BMPritchard]

That's a good find. I hope it comes to affect them.

 

"Although the city owns Yankee Stadium, the team's ticket sales are used as security for $1.2 billion in tax-exempt stadium bonds."

 

That right there is a killer. Only worth 1.2bil without YES...that hefty luxury tax is now looming.

[Yaz Sideburn]

makes sense. cashman was told by hal steinbrenner that the yankees couldn't afford to sign johnny damon last year because they were on a "budget". that was the first time i ever heard a yankees owner mention the word "budget"

 

the yankees also agreed in principle to a trade for mike cameron last year but when cashman went to hal for the ok to take on $5.5 million of cameron's contract, hal nixed the trade

 

these aren't george's yankees anymore

[Northern Star]

Salary cap, please.

[Virgil Stallcup]

$275 million line of credit "partially drawn down" according to the article.

 

Wonder when the line was set up and how far it has been drawn down?

[Sunny]

That's a huge amount of debt !!

[jacksonianmarch]

I doubt the Yankees are hurting. Financial whizzes can tell you how debt can be used to create enormous wealth, which is what I assume is the case here, otherwise the Yankees would be going into chapter 11.

[Sunny]

According to the article - the debt is serviceable - but what happens when the debt is to be called in ? Surely there's an end date for that?

[Meh]

That's a good find. I hope it comes to affect them.

 

"Although the city owns Yankee Stadium, the team's ticket sales are used as security for $1.2 billion in tax-exempt stadium bonds."

 

That right there is a killer. Only worth 1.2bil without YES...that hefty luxury tax is now looming.

 

See all businesses are in some kind of debt. It's a good thing since they are profitting... If you buy a house today you're going to have to take out a loan but for every $20 your in debt you make $40, you profit $20...