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By Going Underground · Posted
Here is the issues the MSA is running into with the stadium improvement financing. *As of March 13, 2023, project is cancelled. Project will rebid but no definite date yet.** https://www.bizjournals.com/baltimore/news/2023/03/07/baltimore-ravens-stadium-upgrades-financing.html After promising the Baltimore Ravens up to $600 million worth of upgrades to their stadium if the team resigned its lease, the Maryland Stadium Authority is now exploring how to finance those renovations amid a difficult economic environment. Chief Financial Officer David Raith told the Stadium Authority’s board on Tuesday that the agency won’t be able to finance $435 million in planned improvements to M&T Bank Stadium with only tax-exempt bonds and is seeking the OK to find a bank loan or other financing to pay for up to $200 million of the project costs. Financing updates to the Baltimore Ravens stadium primarily using tax-exempt bonds, a cheaper option, won’t work because those types of bonds have to be spent in a three-year period. If the money is not spent in three years, Raith said the authority would be at risk of being penalized by the Internal Revenue Service. “I knew there was no way we could spend $600 million in three years,” Raith told the Baltimore Business Journal after the meeting. Raith wants to split the $435 million cost into two methods of financing — $235 million in tax-exempt revenue bonds and $200 million in taxable financing. That money could be raised through a letter of credit, a taxable bond deal or a bank loan. Acquiring taxable debt will be costly as Raith predicted the $200 million in taxable financing would have an interest rate of 5.6%, compared to 3.6% for the tax-exempt bonds. He said the agency would prefer a bank loan for the $200 million because the agency would not have to pay interest until it starts using the loan funds, which could save millions of dollars a year. But Raith said he first needs to see if there are any lenders interested in ponying up the money. “I just don’t know whether there is enough commitment from the banking community for something like that,” he said. The renovations are part of a plan by the state to incentivize both the Ravens and Orioles to stay put in Baltimore. The Maryland General Assembly last year passed House Bill 896, which allowed the stadium authority to borrow $1.2 billion in bonds to pay for improvements to both stadiums. The stadium improvement funds were used as a carrot to get the teams to sign long-term leases. Once the team signed a lease, it would then get access to $600 million. The Ravens in January signed a 15-year lease extension that keeps the team at M&T Bank Stadium until 2037. The signing of the lease started a one-year period for the stadium authority to get financing in place for planned upgrades to M&T Bank Stadium. The Ravens could not be reached for comment. To get all $435 million for renovations financed as quickly as possible, the stadium authority approved a measure on Tuesday allowing Raith to start exploring how he wants to secure the $200 million in taxable borrowing. But the authority also needs the Maryland General Assembly to pass legislation that would allow dual financing for the project. House Bill 524 introduced in Annapolis would create separate financing funds for both the Ravens and Orioles project costs. The clock is ticking for Raith to secure this funding. He said a potential increase by the Federal Reserve of the federal interest rate could cost the authority and taxpayers millions more. “With rising interest rates, the [Maryland Stadium Authority] is trying to get to market as soon as possible to get the best interest rates and generate as much money as possible to ensure we can complete the projects,” Raith said. Unlike the Ravens, the Orioles have yet to sign a lease. The Orioles' lease is up at the end of 2023 and Raith said if the Orioles sign a long-term lease the stadium authority would have to repeat this process again. Raith said he was surprised that the Ravens lease agreement happened first because the team's deal still had five years left on it. “I don’t think anyone expected that the Ravens would be the first ones to the plate because the Orioles' lease was the one that really was a top priority,” Raith said -
By Going Underground · Posted
Someone should ask him about maybe having the highest prices for beer of any team? This is at the new market stores. 16oz beers are $10.99 for domestic and $12.49 for craft, hard, seltzers, or imported beers. 24oz beers are $14.99 for domestic and $15.75 for imports or hard seltzers. 12oz canned cocktails are $12.99. -
By Hank Scorpio · Posted
I would say "stunning".... but is it, really? -
By Going Underground · Posted
Don't like this answer either.He is going to do Baltimore a favor and give them a gift. Don't trust him. Plus the Ravens stadium improvement money may not all come from bonds and maybe have to partially pay it off with a bank loan. As the MSA said the longer you wait on the financing, the more it will cost the taxpayers. I have heard the longer you wait and with interest rates rising the State is not sure the Orioke improvements can all be done with public funds. The Orioles will play their first home game next Thursday, and Gov. Wes Moore and his children will throw out the first pitch. The Orioles’ current lease with the state of Maryland, its landlord, expires at the end of the year. Angelos has said that he hopes signing a long-term lease can be an “All-Star break gift,” meaning the deal would be done by early July. He didn’t provide an update on timing Thursday when asked, but said “we’re going to come through” when it comes to the lease. “There’s no question about it,” he said. -
By Going Underground · Posted
During the game, Angelos was asked if the Orioles would seek contract extensions with players such as Rutschman or top rookie Gunnar Henderson. Other teams have signed young players to long-term deals to avoid losing them later in free agency. For example, Wander Franco signed an 11-year, $182 million deal with the Tampa Bay Rays — a small-market team like the Orioles — this offseason. The Cleveland Guardians, another franchise Angelos pointed to as a team the Orioles would like to emulate, this week signed their young star, Andrés Giménez, to a seven-year contract reportedly worth $106.5 million. Angelos first pointed to the difficulty that small market teams face in MLB as compared to the NFL but did say he hoped that executive vice president and general manager Mike Elias would be able to extend the team’s young talent. They’re going to do what they can within the system that they’re in. Does that mean extensions? Absolutely, I would hope so. But you gotta go with the system you’re in. It’s much, much, much tougher to be in the baseball system than in the football or basketball system,” he said. -
By Going Underground · Posted
“It’s an interesting concept and I saw that my good friends at The Baltimore Sun wanted to weigh in on that today. When the hedge fund that owns The Baltimore Sun, based in New York City, wants to open their books, I guess we’ll take a look at that. It’s difficult for me to understand what that fascination is,” Angelos said in the interview during the Orioles’ 10-9 win over the host Boston Red Sox on opening day. -
By Going Underground · Posted
Since Angelos’ offer in January, The Sun has requested information about a potential meeting with Angelos to discuss the team’s financials, but no meeting has ever been arranged. “When I say something — like I’m gonna sit down with you guys, explain the business from my perspective — I’m gonna do it,” Angelos said in February.
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