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?

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.

Re: Cash On Hand
 

Forbes has Benson's net worth listed at $1.5 billion as of March 1st.

Re: Cash On Hand
 

LOL Drew has taken near 55m in checks to the bank in the last 2 years.

Re: Cash On Hand
 

Nearly 1B of that is the Saints franchise.

Re: Cash On Hand
 

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.

Re: Cash On Hand
 

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.

Re: Cash On Hand
 

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"

Re: Cash On Hand
 

The ticket price increase would support that theory also.

Re: Cash On Hand
 

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

Re: Cash On Hand
 

He could come up with $100M tomorrow if he wanted. Chill.

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yes, and after he wrote the checks he still had $31,000,000 in profit each year

Re: Cash On Hand
 

In one of the most corrupt cities in America we're speculating that a billionaire might not be able to come up with a few extra million LOL.

Re: Cash On Hand
 

Yup, pretty dumb, huh?

Re: Cash On Hand
 

Which still means absolutely zero in in terms of cash on hand. Profit doesn't automatically go into a mattress. Generally it gets rolled over into something else. Perhaps another car dealership, charity, motel... Even the filthy rich don't just let the ledger on the check book register roll up to $15m.

Cash On Hand
 

A billion dollar corporation can easily be cash broke due to cash flows. Just because you have a multi-million dollar contract, doesn't mean your getting paid faster than you are spending or investing.

Payable vs Recieveable

Re: Cash On Hand
 

this is why we raised season tickets prices, ya think

Re: Cash On Hand
 

My God, are you two crazy?

Last year Benson was worth $1.2 billion. This year he is worth $1.5 billion. That is $300 million in net growth over the past 12 months. Right now he is looking for ways to distribute cash to offset the revenue to defray taxes. Current year spending in the form of a bonus would be a help.

As for ticket prices, you charge what you can get and he can get the tiny bit if the increase easily.

And, yes, I do have a degree in accounting in case you are wondering.

Re: Cash On Hand
 

Does this look like a guy that can't come up with a few million?

http://media.nola.com/saints_impact/...6907-large.jpg

Re: Cash On Hand
 

Nothing of what has been said in this thread speaks to liquidity, only assets or net worth.

Net Worth = assets - liabilities. Cash is only a portion of assets and since you are so confident in his cash holdings what are they?

Back to my original point; bonuses cant be paid to claim a tax deduction if there is not enough cash on hand to do so.

In regards to "can get", sure he can get, but at what cost?

I wasn't wondering, but thanks. I do not have a degree in accounting, I did sleep at a Holiday Inn Express though.

"Dumb" and "Crazy".. I see why you are the "Ambassador":rolleyes:

One question still remains... With all the incentive to restructure and give bonuses to get a tax break... Why haven't some of the most beneficial to the team contracts not been restructured?

Re: Cash On Hand
 

You're right, I apologize, but why restructure anything unless or until it is necessary? While restructuring frees up short-term cap it always comes at a long-term cost. The Saints are not in any dire straits right now. I don't understand this concern.

But back to your original post where you wondered about the cuts as opposed to restructuring. I feel it has a lot to do with the CBA an the rookie contract structures. Younger players are now much more cap friendly. Free agents are also more abundant due to the increased number of cuts, thus leading to lower salaries. It is like a self perpetuating circle. Why restructure a veteran player when you can now cut them and sign another at a more economic rate?

Re: Cash On Hand
 

You may have misunderstood my OP. It wasn't cuts vs restructure, it was cuts but haven't done restructures yet. I have studied our cap situation and what can be done about it.

As far as dire straits, we are and we aren't. In terms of the cap we are, in terms of time to make the room we are not in dire straits.

Presently we have 1.9m (only Top 51) in cap so we are under the cap before the deadline, which is why its not a hard issue right now.

In regards to staying under the cap, a lot needs to happen to sign draft picks, re-sign or sign Free Agents, practice squad, etc..

Ill give examples of what I mean:
You start with 1.9m in cap space
Vaccaro took up 1.7m in cap space
Jenkins took up 500k in cap space
Stills took up 500k in cap space
Armstead took up 500k in cap space
Johnson took up 500k in cap space

5 Draft picks = 3.7m
Practice Squad = 300k
You are 2.1m over the cap and that isn't counting 2 players and any FAs yet.

See where I am going with this? Before it is said and done, either more cuts or restructures have to happen.

Restructuring Evans and Grubs would free up nearly 8m dollars. PT is on the block because that frees up 2.5m with zero dead money. Sproles frees up 2.65m if cut because he has a relatively low dead money hit (750k).

Cash On Hand
 

I don't think anyone buys a NFL franchise before accepting the fact that they are going to have to fork over a lot of dough. But it all comes back to them through tickets and highly priced beer

Re: Cash On Hand
 

Apparently a little Byrd was going to get his beak wet first

Re: Cash On Hand
 

To the tune of $11ml.