The Ripper
Starter
- Joined
- Apr 25, 2015
- Messages
- 794
- Name
- Rip
Because you keep acting like you know what the investors limits are and where their cut off point is, and acting like these "if's/could/should" scenarios had never dawned on them or as if GS has no idea what they're in for down the line. They didn't become a $85 billion dollar company by doing terrible stadium deals.
Again, irrelevant. Few ways to look this:
1)you really think an investor, after spending so much money on such a project is going to totally abandon it in 10-20 years?
2)The income the stadium generates, especially over 10-20 years, could easily be put back into "maintenance" or whatever they might need.
3)There are many ways to finance issues through a stadium - with things including revenue coming from ticket sales, the stadium, etc. An example of that would be the G4 loan (Disclaimer: I am not saying they are getting it). Some of the ways to pay that back are over time through stadium money.
I think you're trying to make a non-issue into an issue, and my biggest issue is that you're making assumptions about how investors are going to act when you don't even know who is investing let alone how many or their worth. In the same breath, you're also asserting that they would be unwilling to help at all, especially after generating a ton of money off the initial investment.
And I guess my biggest gripe is that Goldman Sachs has been down this road before; 30 times in the last 10 years - and I'm guessing you could probably take all these concerns and apply to it every stadium deal that is privately funded but not owned by the owner... Or hell, just look at the Santa Clara deal. Do you think they're not gonna be able to fix any future issues?
Doesn't hold water or make any sense. Goldman Sachs has been done this road several times - if there's any body who knows whats coming down the road, it's them.
Additionally, they have said they will cover losses. Again, point is moot. And I think who "finances" their stadium isn't going to matter to the other owners - all they care about is if the Money is there to finance it, period. The money they care about is the one that goes into their pockets, which they stand to get the most from two teams - and by all indications thus far, the only stadium with two teams is Carson. Sure things are subject to change and they may - but I'm not buying any hype of inglewood housing two teams until I actually read something in favor of that saying that, instead of against it.
Not sure where you're getting the G4 information, nor do they need it with a $1.7 billion pledge from GS and still have the added option of PSL sales. Even if they don't reach the ridiculous amount of $800 million in PSL, even $400 - $500 million would be more than enough of a safe estimate in the LA area, especially with two teams..and as it stands now they're not needing the extra money.
Goldman makes mistakes all the time and they do lose money for investors. Serious issues from the real estate bubble for one. Heavily invested in tech companies in the late 90's and they will pull out of project if the return is not there. They gave a proposal to the Chargers and that's it. Think of it is getting pre qualified for a loan. If the situation changes then they deal will change. What if rates go up over the next year and the revenues go down then they might not be able to honor the guarantees. The construction at the earliest starts next fall so they won't be raising anything for about a year.
Goldman didn't pledge the whole cost of the stadium. The plan is based on Levi and they included G-4 loans in in the proposal along with PSL's and naming rights. Take any one of them out the deal gets riskier. More risk increases the return of the investors and Goldman but it costs the teams money plus they will need to borrow more. There's a limit to the amount they can borrow and the NFL will turn it down if it's not a good for the team even if the owners wants to do it.