NY Giants - Good at football, bad at finance

[marmar]

Giants Lose to Lehman in $300 Million Swaps as They Romp in NFL
By Aaron Kuriloff


Dec. 19 (Bloomberg) -- The New York Giants are 11-3 on the field. On Wall Street, they’re down $300 million and counting.

From a bond market collapse and skyrocketing interest rates to the bankruptcy of its investment bank, the Super Bowl champions have taken one hit after another financing what co- owner John Mara calls the world’s most expensive sports venue: a $1.6 billion New Jersey stadium to be shared with the New York Jets when it opens in 2010.

The team, which borrowed $650 million toward its share of the stadium, can’t say exactly how much that’s now costing, according to court papers. Mara sent a bill to Lehman Brothers Holdings Inc. in October claiming the bank owes the National Football League club more than $300 million after defaulting on interest-rate swaps. The team also is subject to rate swings, refinancing charges and legal fees, the papers say.

“We continue to work expeditiously to determine the full extent of our loss,” the club says in documents filed in federal bankruptcy court. Neither Mara, 54, nor co-owner Steve Tisch, 59, would comment on financing issues.

The year-old U.S. recession is hurting efforts by the Giants and Jets to sell million-dollar suites and $20,000 seat licenses, as well as find a sponsor willing to spend tens of millions to name the new stadium, said Marc Ganis, president of Chicago-based industry consultant Sportscorp Ltd.

The Giants may be nursing bumps and bruises for years, missing stadium revenue projections and eating into what the team can spend on players, he said.

“It comes out of their bottom line -- there’s no other source for it -- which may mean at some time they have less money to pay players,” he said. “I think they’ll weather the storm, but it’s a storm.” ........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601079&sid=ay72YnXojdqk&refer=home