Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 26, 1993 TAG: 9305260042
SECTION: SPORTS PAGE: B3 EDITION: METRO
SOURCE: Associated Press
DATELINE: ATLANTA LENGTH: Medium
A committee of owners decided the fee, plus interest, will be paid over six years. The new teams also will receive only a half share of national television revenue in their first three seasons. In the fourth season, they will receive a full share.
The owners decided the fee could fluctuate within 5 percent of $140 million, depending on local revenues, said league spokesman Greg Aiello.
Five cities are candidates for two expansion teams: Baltimore; Charlotte, N.C.; Jacksonville, Fla.; Memphis, Tenn.; and St. Louis.
"It's going to take some time to analyze," said Mark Richardson of Richardson Sports, which is heading the NFL bid in Charlotte. "It's not a simple equation. We'll have to take the payment and terms back and work into our financial model.
"We're glad a fee has finally been locked in and we know what we're dealing with now."
Richardson said the fee, combined with the three-year reduction in television revenues, effectively puts the cost at $200 million.
He said the organization had been running financial models assuming a franchise fee of between $150-$200 million.
"This falls within the range we've been working with," he said, "but it's all the way at the upper end of the range. It was not completely unexpected."
Although the figure is less than the $175 million considered by league officials and potential owners, it is still $45 million more than entry fees for any other sport.
The owners of the Colorado Rockies and Florida Marlins paid $95 million each for their major league baseball teams. The fee for the newest NBA teams was $32.5 million; NHL expansion clubs paid $50 million.
The owners of the last two NFL expansion teams, Tampa Bay and Seattle, paid $16 million each in 1974. Those teams began play in 1976.
Keywords:
FOOTBALL
by CNB