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The NFL increased its debt to $1.4 billion to buy franchises

The NFL increased its debt to $1.4 billion to buy franchises

Team owners approved a new debt limit to ensure that transactions can occur more fluidly in a context of inflation in the value of franchises, which are already worth an average of $5.1 billion.

rEUTERS

The NFL increases the debt allowed to buy franchises. The 32 team owners approved at the last meeting that The debt limit in the acquisition is raised to a total of US$1.4 billion.

The acquisition debt limit goes from US$200 million to US$700 million. Also included are another US$700 million in financing that was already allowed to each team.

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Buying an NFL team costs an average of $5.1 billion, double what it cost a decade ago.

Buying an NFL team costs an average of $5.1 billion, double what it cost a decade ago.

Reuters

This financing limit had already been raised in October by US$100 million, to the current US$700 million.

The increase in debt and financing rose in line with the takeoff in franchise valuations. Buying an NFL team costs an average of $5.1 billion, twice as much as a decade ago.

In fact, in 2015 the debt allowed was US$200 million.

Increasing this debt limit was crucial for the sale of the Washington Commanders to occur in 2023 for US$6.05 billion, since the operation included US$1.1 billion of secured bonds and an additional US$1 billion of unsecured debt. assured that the NFL I do not accept.

Source: Ambito

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