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 Post subject: Johnny used to work on the docks...
PostPosted: Tue May 28, 2013 10:33 am 
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Bon Jovi Blew It Passing On Atlanta Falcons
Mike Ozanian, Forbes Staff
Traffic cop at the intersection of money and sports
SportsMoney
5/23/2013

Jon Bon Jovi blew it.

In February, 2011 the rocker was going to invest $150 million for a 15% stake in the Atlanta Falcons. A month later, the NFL lockout hit and Bon Jovi changed his mind because he felt the work stoppage would reduce the $1 billion valuation his investment placed on the Falcons, according to a person familiar with the situation.

But in July of that year, the players and owners agreed to a new collective bargaining agreement. The 10-year deal made team values go up because it reduced the percentage of league revenues that went towards player salaries, and the guarantee of long-term labor peace made it easier for the owners to get new broadcasting deals with ESPN , NBC, Fox and CBS CBS -0.61% beginning in 2014 that are over 60% richer than the league’s current rights fees.

As for the Falcons specifically, controlling owner Arthur Blank got closer to getting the funds for a new stadium Tuesday when NFL owners voted to provide his team with $200 million in league funding. The city of Atlanta, state of Georgia, Georgia World Congress Center & Atlanta Falcons have agreed to build a retractable-roof stadium, with a potential cost of around $1 billion, on the GWCCA campus in time for the 2017 NFL season.

We most recently valued the Falcons at $837 million, 28th out of the league’s 32 teams. The Falcons are also in the bottom-fifth of the league in revenue ($239 million) thanks to playing in the antiquated Georgia Dome. The new, $1 billion stadium will boost the value of the team due to more revenue from premium seating and sponsorships. But without a final lease agreement it is impossible to determine what the precise increase in revenue and value will be for the Falcons.

As a guide, consider that a year ago, James Haslam agreed to pay Randy Lerner $1.1 billion for the Cleveland Browns–paying 70% of the purchase price immediately and 30% in three years. The present value of the future payment valued the team at $987 million. Atlanta is much bigger market than Cleveland and will have a state-0f-the art stadium, so it is hard to see how the Falcons could be worth less than $1.1 billion once the stadium is a done deal.

But Bon Jovi will likely only profit from the new stadium by performing during halftime of a Super Bowl.

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