We have discussed the new Cowboys Stadium in class. I thought you would find these observations from the latest Richard Russell Dow Theory Letter interesting, he is quoting Bloomberg.
I've been wondering about professional football and the NFL. How can the NFL continue to pay those HUGE salaries to players? That's going to end. An article in the current Bloomberg magazine is entitled "The NFL's Stadium Binge." The league is loaded down with debt from building revenues filled with luxury skyboxes. With tickets to game still unsold, owners are pushing for a new labor deal with players. The average price of a premium ticket to an NFL game is now an absurd $226 — and owners are having problems filling their stadiums.
The NFL has been on a costly borrowing spree to build or renovate 24 stadiums. The NFL and team debt in 1996 was $2.0 billion. In 2009 is was $9.0 billion.
Russell Conclusion – Ticket price will have to come down, the owner's take in football will be reduced, and a new pact will whack players' salaries. The 2011 season may start and end with an owners' lockout. Fun's over, and the NFL's money fantasy is hitting a brick wall of massive debt and reality.
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