Originally posted by buck:
Originally posted by niners_guy:
Yeah I read it the same way, as 220/20 = 11M a year. 3.3M to the Niners and 7.7M to the City. Peanuts really when you consider the 49ers are paying 30M a season in rent. Those NFL teams are raking it in.
The money that goes to City is paying off the loan the 49ers received from public funds, isn't it.
If it is, then that 7.7 million is a direct benefit to the 49ers. If the team got that money directly, it would still have to pay the loan back.
Or I am confused again.
Yes, it's a piece of the picture in repaying the loan for the stadium. This is from the Merc regarding the refinance they did, before naming rights were announced:
" It will cost at least $69 million in initial financing costs to refinance the loan, plus much more in interest and fees over the long run.
The new projections show the project debt will fall by about $216 million, to roughly $634 million, by the time the stadium opens in summer 2014. That's mostly because fans continue to submit advance payments faster than expected for seat licenses, which allow Niner faithful the opportunity to buy season tickets at a cost of $2,000 to $80,000 apiece. Fans have committed to buying more than $410 million in seat licenses so far.
By the time fans finish paying off their seat licenses in 2022, the loan is expected to shrink to less than $350 million. The remaining debt will be paid off with revenue from naming rights -- a corporate sponsor is still in the works -- ticket fees and rent from the 49ers, which is expected to be in the neighborhood of $30 million a year.
Most of the debt will be 25-year, fixed-rate bonds, while the rest will be five-year, variable-rate bank loans. Carey said the projections show that debt will be gone by 2039, and that includes a buffer of several million dollars per year to pay for stadium operating costs and other expenses.