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Cash On Hand

this is a discussion within the Saints Community Forum; Not even rumor grade, just pure speculation/guessing on my part. This seems to be the season with the most cuts and fewest restructures. But why? I am unaware of the NFL liquidity requirement for franchise owners. Also clueless as to ...

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Old 03-10-2014, 04:14 PM   #1
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Cash On Hand

Not even rumor grade, just pure speculation/guessing on my part.

This seems to be the season with the most cuts and fewest restructures. But why?

I am unaware of the NFL liquidity requirement for franchise owners. Also clueless as to how Tom Benson's businesses are doing.

We throw around cap and bonuses for restructures with out even a thought to whether Benson has that much cash available.

Signing bonuses have to take a toll on the cash coffer, restricting generally means a few Mil bonus up front.

In comparison to 2013 Jimmy's 7m FT, is a large salary increase between 2013/2014 that has to be paid when he signs. Add 2-3 restructures and that could add 5-6+ million.

What are the chances Benson doesn't have $15m laying around to pay for all of that?

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Old 03-10-2014, 04:35 PM   #2
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Re: Cash On Hand

Yep, spreading a 20 million cap hit over 4 years is for the books.

Benson writes a check for 20 million before the ink dries on that contract.

And I'm sure Benson has a much larger LOC than most of us every will.
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Old 03-10-2014, 04:56 PM   #3
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Re: Cash On Hand

Forbes has Benson's net worth listed at $1.5 billion as of March 1st.
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Old 03-10-2014, 04:57 PM   #4
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Re: Cash On Hand

LOL Drew has taken near 55m in checks to the bank in the last 2 years.
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Old 03-10-2014, 05:45 PM   #5
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Re: Cash On Hand

Originally Posted by AsylumGuido View Post
Forbes has Benson's net worth listed at $1.5 billion as of March 1st.

Nearly 1B of that is the Saints franchise.
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Old 03-10-2014, 08:09 PM   #6
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Re: Cash On Hand

Originally Posted by TheOak View Post

What are the chances Benson doesn't have $15m laying around to pay for all of that?
not too likely

Billionaire Saints Owner Tom Benson To Score $400 Million Revenue Boost From Agreement With State - Forbes

Unless he has a REAL bad gambling/coke/hooker problem

Four years ago, he negotiated one of the most complex and lucrative stadium lease agreements in the NFL, adding to his fortune as his team was bringing in estimated yearly profits of $31 million. Over 15 years, the term of the lease, the state will pay Benson at least $198 million in increased revenue from the Superdome, $142 million in rental payments on property Benson owns, $10 million in bonuses for bringing the Super Bowl to New Orleans and $2.6 million in tax breaks. Benson will get another $40 million from private rent payments to a tower he bought as part of the deal.
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Old 03-10-2014, 08:20 PM   #7
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Re: Cash On Hand

Originally Posted by ScottF View Post
not too likely



Billionaire Saints Owner Tom Benson To Score $400 Million Revenue Boost From Agreement With State - Forbes



Unless he has a REAL bad gambling/coke/hooker problem



Four years ago, he negotiated one of the most complex and lucrative stadium lease agreements in the NFL, adding to his fortune as his team was bringing in estimated yearly profits of $31 million. Over 15 years, the term of the lease, the state will pay Benson at least $198 million in increased revenue from the Superdome, $142 million in rental payments on property Benson owns, $10 million in bonuses for bringing the Super Bowl to New Orleans and $2.6 million in tax breaks. Benson will get another $40 million from private rent payments to a tower he bought as part of the deal.

None of which means he has $15m in cash around. See all the places where it says payment(s)?

Benson is an investor. It is very foolish to have $15m sitting in a checking or savings account earning 1%.

In the last 3-4 years he has written $50m in checks to just Brees and Evans.
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Old 03-10-2014, 08:24 PM   #8
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Re: Cash On Hand

Originally Posted by TheOak View Post
Not even rumor grade, just pure speculation/guessing on my part.

This seems to be the season with the most cuts and fewest restructures. But why?

I am unaware of the NFL liquidity requirement for franchise owners. Also clueless as to how Tom Benson's businesses are doing.

We throw around cap and bonuses for restructures with out even a thought to whether Benson has that much cash available.

Signing bonuses have to take a toll on the cash coffer, restricting generally means a few Mil bonus up front.

In comparison to 2013 Jimmy's 7m FT, is a large salary increase between 2013/2014 that has to be paid when he signs. Add 2-3 restructures and that could add 5-6+ million.

What are the chances Benson doesn't have $15m laying around to pay for all of that?
I think it is highly possible in the current economy especially since we know he has been spending up until this point. A lot of people who have a huge net worth are "cash poor"
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Old 03-10-2014, 08:25 PM   #9
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Re: Cash On Hand

Originally Posted by The Dude View Post
I think it is highly possible in the current economy especially since we know he has been spending up until this point. A lot of people who have a huge net worth are "cash poor"

The ticket price increase would support that theory also.
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Old 03-10-2014, 08:28 PM   #10
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Re: Cash On Hand

You really think Benson couldn't get the money if he needed it?
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