saints (n.) - NFL franchise presently based in New Orleans; boondoggle (n.) - an unnecessary or wasteful project or activity; saintsdoggle (n.) - the Saints' potential relocation situation in New Orleans, and the resulting boondoggle by Louisiana to keep the team from leaving

Tuesday, June 28, 2005

State takes out another loan to pay Saints; What's next?

According to numerous reports, Louisiana has taken out a loan for a second consecutive year to pay its annual obligation to Tom Benson and the New Orleans Saints. Last year, Louisiana took out a $7.5 million loan, which has yet to be repaid. This year's loan will be for $10.5 million and will be conducted through the sale of a "revenue anticipation note," a financial method the state hasn't used in over a decade.

By all accounts, state officials have no idea where the revenues will come from to pay off the new loan, which will come due and owing with interest on Jan. 1, 2007.

State Treasurer John Kennedy was quoted in the Monroe News Star as saying, "What we did today wasn't pretty. If you look strictly at the numbers, you probably wouldn't do this, but there's a story beyond the numbers." Kennedy also was quoted in the Baton Rouge Advocate ("It's not pretty but you do what you have to do.") and the Shreveport Times ("It's either default on the contract or pay the Saints.")

Also, the New Orleans Times-Picayune quoted a member of the state Bond Commission, which approved the loan, as saying, "[s]hould nothing change, the (LSED) would be in...worse financial position next year." LSED is the Louisiana Stadium and Exposition District, and it oversees operation of the Superdome. Through it, the state loses money each year by selling concessions it purchases and sells with its own staff at Saints games, and then giving all the profit and then some to the Saints under the current agreement, according to an Alexandria Town Talk article from December 2004, "Saints have heavenly deal with state, look for even more."

The Alexandria Town Talk article also notes that the Saints use the Superdome rent-free, receive all gameday parking fees, all profit from anything sold at Saints games, and all advertising in the Dome. And that's not including luxury suite sales.

In other words, things don't look overly optimistic going forward for either LSED or the state.

All of which begs the question: How will the state pay off the aforementioned loans and still come up with the $20 million due next July to Benson and the Saints under the present agreement? Through another loan?

As it stands now, the only silver lining in continuing to line Benson's pockets with taxpayer gold is this: Since the state has somehow propped up its end of the deal, it means that if Benson opts out of his agreement with the state after the 2005 Saints season, the state will receive $81 million back from Benson.

Like it or not, that seems to be the most revenue anticipation there is for the state at this moment.


Anonymous Anonymous said...

cheap wedding gowns
discount bridal gowns
China wedding dresses
discount designer wedding dresses
China wedding online store
plus size wedding dresses
cheap informal wedding dresses
junior bridesmaid dresses
cheap bridesmaid dresses
maternity bridesmaid dresses
discount flower girl gowns
cheap prom dresses
party dresses
evening dresses
mother of the bride dresses
special occasion dresses
cheap quinceanera dresses
hot red wedding dresses

5:42 AM  
Anonymous Anonymous said...

Replica Handbags
Fake Handbags
Knockoff Handbags

Replica Louis Vuitton Handbags
Replica Gucci Handbags
Replica Chanel Handbags
Prada Handbags
Replica Fendi Handbags
Replica Dolce Gabbana Handbags
Replica Chloe Handbags
Replica Jimmy Choo Handbags
Replica Thomas Wylde Handbags
Replica MiuMiu Handbags

Replica Balenciaga Handbags
Replica Coach Handbags
Replica Lancel Handbags
Replica Hermes Handbags
Replica Marc Jacobs Handbags
Replica Anya Hindmarch Handbags
Replica YSL Handbags
Replica Mulberry Handbags
Replica Givenchy Handbags
Replica Valentino Handbags
Replica Versace Handbags
Replica Cartier Handbags
Replica Marni Handbags
Replica Bottega Veneta Handbags
Replica Loewe Handbags
Replica Kooba Handbags

Replica Bally Handbags
Replica Burberry Handbags
Replica Christian Dior Handbags
Replica Juicy Couture Handbags
Replica Ferragamo Handbags
Replica Celine Handbags

10:39 PM  
Anonymous Anonymous said...

24371833691754917475 As we Last Chaos Gold announced shortly Replica Watches after his Replica Cartier Watches tragic Replica Rolex Watches death, the Swedish LastChaos Gold studio GRIN secretly Replica Watch developing a Replica Chanel Watches spin-off of the Replica Swiss Watches legendary Final Exact Replica Graham Watch Fantasy Replica Montblanc Watches series Swiss Replica Watches from Square Enix. Replica Breguet Watches According to concept art leaks Replica Breitling Watches on the canvas, then Replica BRM Watch canceled the Tag Heuer Replica Watch title was called Replica IWC Watch Final Fantasy Last Chaos Gold Fortress.

2:06 AM  

Post a Comment

<< Home