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New Found Revenue!


Brandon

1,711 views

Twins Video

No one seems to be talking about this so I thought I would post it here.  The Pohlad's said they paid off the debt from the new investors investing in the team.  How much were the payments on that debt that the Twins are no longer paying.  Let's look at some possibilities.  First the amount of the debt.  I understand the debt to be in the neighborhood of 425 million.  

what is the interest on that debt and is it interest only or fully amortizing?

let's look at 5%, 8% 10% and 12%.  on interest only we would see annual payments of at 5% = 21,250,000   8% = 34,000,000 at 10% we have 42,500,000 and at 12% = 51 million.

if the debt is amortized we get at 5% = 27,377,900  at 8% = 37,421,993 at 10% = 44,756,150 and at 12% = 52,459,242

This is pretty significant and wide range.  With all of the cuts to payroll. It seems the Twins are back to profitability but also they have this newfound resource to reinvest into the team if they so desired.  I would think that most of the debt would be int eh 8-10% range some possibly lower and recent debt higher.  The Twins are definately saving more than they are losing on the TV deal.  and with Revenue Sharing and Attendance revenue The Twins should have a good solid amount of revenue.  

3 Comments


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DJL44

Posted

I guess nobody was talking about it because nobody trusts ownership that there actually was $425M in debt. Before the season it was $300M, after the season it was $400M, now it's $425M? How are they adding $25M in debt every month? How did they add another $25M to the total when the season is over and they don't have any payroll or operating expenses?

I don't believe any of these numbers just like I don't believe MLB claiming they lost billions this season. It doesn't add up.

Parfigliano

Posted

If it was up to me a concrete condition of any deal involving public  tax monies being used to finance a stadium for a private entity would be the taxing authority gets full access to the private entities financials so long as they lease the stadium/repay the loan.

tony&rodney

Posted

If the numbers are not public with all entries legitimate and all things transparent it is plain silliness to take a corporate voice at their word. One of the really weird aspects about U. S. culture is the massive insistence on building stadiums and paying for corporate sports but without any return to the public. 

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