NFL Loan Pool Deadline Near
Rocked by the turbulence in the financial markets, the NFL has not yet renewed its $1.5 billion lending pool with less than two weeks remaining before an Oct. 31 deadline.
The NFL is facing significantly higher interest rates and challenges borrowing money. While the league last week expressed optimism a deal would come, banking sources said the loan pool, or credit facility, may "term out," which means that over the next four years, the league would have to pay down the loans.
About half the league's teams have relied on the credit facility for cheap loans. That era, it appears, could be set to come to a close.
This problem doesn't sound good for the NFL or any other professional sports league who could fall short on the financial part of their respected franchises. The NFL has been having financial problems. However the league is using many options before the October 31st deadline. The league has been payin about .5% to the LIBOR (London Interbank Offered Rate). This number has flucuated to an astonishing 6.88% last month. The NFL is trying to refinance the credit facility with LIBOR at 125 points. With this said the league would have to start paying off loans over a four year period. On the other hand many other leagues are facing these same problems...
Read More at..... http://www.sportsbusinessjournal.com/article/60310
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It is very unfortunate to see any big sports business or franchise fall short financially. With all players wanting more money it seems as though more and more franchises are going to need loans. With the poor economy borrowing money is going to become harder and lets just hope this doesnt cause the NFL any damage, other than maybe the weight of the franchises wallets.