Cash On Hand

TheOak · 03-10-2014, 04:14 PM

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?

Danno · 03-10-2014, 04:35 PM

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.

AsylumGuido · 03-10-2014, 04:56 PM

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

TheOak · 03-10-2014, 05:45 PM

Originally Posted by AsylumGuido

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

Nearly 1B of that is the Saints franchise.

TheOak · 03-10-2014, 04:57 PM

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

ScottF · 03-10-2014, 08:09 PM

Originally Posted by TheOak

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.

TheOak · 03-10-2014, 08:20 PM

Originally Posted by ScottF

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.

ScottF · 03-10-2014, 08:56 PM

Originally Posted by TheOak

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.

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

TheOak · 03-10-2014, 09:04 PM

Originally Posted by ScottF

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

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.

The Dude · 03-10-2014, 08:24 PM

Originally Posted by TheOak

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"

03-10-2014, 04:14 PM	#1
TheOak 10000 POST CLUB Join Date: Dec 2009 Location: Cypress Tx. Posts: 19,043	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?
	It's not what you look at that matters, it's what you see. ~ Henry David Thoreau

03-10-2014, 04:35 PM	#2
Danno Truth Addict Join Date: Dec 2003 Location: Spanish Fort, AL (via NO and B/R) Posts: 24,751	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. saintfan, TheOak and saintsfan403 like this.

03-10-2014, 04:56 PM	#3
AsylumGuido 10000 POST CLUB Join Date: Sep 2007 Location: Bossier City, LA Posts: 26,554	Re: Cash On Hand Forbes has Benson's net worth listed at $1.5 billion as of March 1st. Rugby Saint II likes this.

03-10-2014, 05:45 PM	#4
TheOak 10000 POST CLUB Join Date: Dec 2009 Location: Cypress Tx. Posts: 19,043	Re: Cash On Hand Originally Posted by AsylumGuido Forbes has Benson's net worth listed at $1.5 billion as of March 1st. Nearly 1B of that is the Saints franchise.

03-10-2014, 04:57 PM	#5
TheOak 10000 POST CLUB Join Date: Dec 2009 Location: Cypress Tx. Posts: 19,043	Re: Cash On Hand LOL Drew has taken near 55m in checks to the bank in the last 2 years.

03-10-2014, 08:09 PM	#6
ScottF 5000 POSTS! + Join Date: Feb 2007 Location: Atlanta Posts: 6,324	Re: Cash On Hand Originally Posted by TheOak 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. Rugby Saint II and ChrisXVI like this.

03-10-2014, 08:20 PM	#7
TheOak 10000 POST CLUB Join Date: Dec 2009 Location: Cypress Tx. Posts: 19,043	Re: Cash On Hand Originally Posted by ScottF 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.

03-10-2014, 08:56 PM	#8
ScottF 5000 POSTS! + Join Date: Feb 2007 Location: Atlanta Posts: 6,324	Re: Cash On Hand Originally Posted by TheOak 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. yes, and after he wrote the checks he still had $31,000,000 in profit each year

03-10-2014, 09:04 PM	#9
TheOak 10000 POST CLUB Join Date: Dec 2009 Location: Cypress Tx. Posts: 19,043	Re: Cash On Hand Originally Posted by ScottF yes, and after he wrote the checks he still had $31,000,000 in profit each year 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.

03-10-2014, 08:24 PM	#10
The Dude 5000 POSTS! + Join Date: Jul 2011 Posts: 9,055	Re: Cash On Hand Originally Posted by TheOak 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" TheOak likes this.
The Dude 5000 POSTS! + Join Date: Jul 2011 Posts: 9,055

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