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OT: NBA suffering from credit freeze.

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BassMaster
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OT: NBA suffering from credit freeze. 

Post#1 » by BassMaster » Thu Nov 20, 2008 9:38 pm

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Question for those of you who live in Orlando is the new arena still being built. The reason I ask this the city and county sold only a small amount of the bonds to pay for this project and those bonds cost a lot more because the economy was in trouble then. Now I have heard that other teams building new arena's are having problems because of the credit freeze. It is affecting the new Nets home slowing down construction. Since the city and county couldn't sell most of the bonds what if anything is going on with the new arena or is the city and county going to assume the costs a different way???????


Here is the link about the bonds and I love the part where the bond market will get better sooner then later. Instead as all know now it has gotten much, much worse with credit markets frozen. Here is an example the grocery store where I shop has shelves that are not full. I asked the manager what gives he told me that the company is only getting one order to the store a week instead of 3 because of the problem with the credit market. The company right now is not able to sell any of it's bonds because the interest rates are through the roof.
The link:
http://www.orlandosentinel.com/communit ... 5669.story

The city has many bond issues ahead to pay for the three downtown buildings.

But city leaders and their financial advisers insisted the venues financing is not in danger.

"We know the market will return to a more balanced state, and when it does, we'll have an easier time than we had this week," Sutton said. "I think we have a strong financing plan, and we left ourselves plenty of cushion to make the numbers."


Boy were they so wrong.

Oh and BTW here is another link about the Nets:

http://curbed.com/archives/2008/01/29/t ... usical.php

As the Court surely is aware, the credit markets are in turmoil at this time. Many lenders and bond insurers are facing financial difficulties, and are becoming much more cautious. It is not clear what the financial climate will be in several months, when the arena bond financing is made available to the public…there is a serious question as to whether, given the current state of the debt market, the underwriters will be able to proceed with the financing for the arena while the appeal is pending before this Court.

Another link about the Nets and Bonding problems:
http://www.brownstoner.com/brownstoner/ ... put_on.php
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Dunkin On Ya
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Re: OT: NBA suffering from credit freeze. 

Post#2 » by Dunkin On Ya » Thu Nov 20, 2008 9:45 pm

The Magic's arena is going as planned as far as I know. I actually work for a company who is going to have a part in building it.
BassMaster
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Re: OT: NBA suffering from credit freeze. 

Post#3 » by BassMaster » Thu Nov 20, 2008 10:05 pm

Dunkin On Ya wrote:The Magic's arena is going as planned as far as I know. I actually work for a company who is going to have a part in building it.


That's great to hear, but did the City of Orlando sell the rest of those bonds or are they being forced to wait until the markets unfreeze???
Or are they going to get the money from another source and then pay that back with those bonds once the markets unfreeze??? Because from the article it mentioned that not all of the bonds had been sold and that they thought that conditions would improve. Instead they have gotten a heck of a lot worse since the last time this was brought up. Improvement seems to be a distant memory instead of something happening soon.
The reason I state this could cost the city to delay some projects. Just ask the Nets about selling Bonds and the impact it is having on them.
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SS_MagicMark
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Re: OT: NBA suffering from credit freeze. 

Post#4 » by SS_MagicMark » Thu Nov 20, 2008 10:27 pm

His agent couldn't even sell Bonds for the minimum this year.
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Re: OT: NBA suffering from credit freeze. 

Post#5 » by craig01 » Thu Nov 20, 2008 11:52 pm

If the economic climate continues to spiral down there is no telling what may or may not get done down the road.
Basketball is driven by three principles:

1) Movement 2) Application of fundamentals 3) Predictability
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Re: OT: NBA suffering from credit freeze. 

Post#6 » by UCFJayBird » Fri Nov 21, 2008 2:28 am

honestly the new arena is the least of our worries if the economy and credit crisis doesn't get better. Hopefully it continues as planned.
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glennathan
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Re: OT: NBA suffering from credit freeze. 

Post#7 » by glennathan » Fri Nov 21, 2008 4:35 am

UCFJayBird wrote:honestly the new arena is the least of our worries if the economy and credit crisis doesn't get better. Hopefully it continues as planned.


+1 I hope the worst I can think of actually does not come true. That being that professional sports is gone or disbanded.
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craig01
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Re: OT: NBA suffering from credit freeze. 

Post#8 » by craig01 » Fri Nov 21, 2008 11:56 pm

Not just sports.........
Basketball is driven by three principles:

1) Movement 2) Application of fundamentals 3) Predictability

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