yeah I wasnt refering to the signing of revis with that though. sucks we still have so many Psl's to go.
In this business you have to spend money to make money. Woody can't expect to sell PSLs if he lets go of outstanding young talent, which would make absolutely no business sense.
Bart is a retard- The Jets alone are worth over a billion, and in 2006 Johnson & Johnson was worth about 30 billion. I've been tweeting him all this info with no response the guy is a tool.
Not really. Woody Johnson's net worth was about $1.8 BB in 2008. If he took a big hit in the markets, and if he didn't 'ride it back', it's possible that his non-NY Jets liquid assets are only in the area of $500 MM - $750 MM. That would support an annual cash flow of only $20 - $40 MM without dipping into the principal. You start borrowing into the corpus of a $500 MM trust fund at the rate of $25-$40 MM per year, it goes down pretty quickly unless the stock market is going up 20% a year.
You guys have no idea what you are talking about. My friend manages money for one of the J&J heirs (not Woody). The heirs own very little of the JNJ stock and haven't owned a controlling interest in DECADES. They've sold it off over time, diversified, and also liquidated shares for other interests (i.e., Woody raising $$$ fo for the NYJ purchase). Woody probably owns only a few million shares of JNJ, if that (the stock is $58/share). JNJ is worth $160 BB, by the way, not $30 BB. The Johnson family and heirs probably own less than 5% of the stock, fyi.
According to Forbes the family is worth $13 billion. How much of that is liquid and available to Woody is beyond me, but I think it's safe to say Woody can come up with $100 million if he needs to. He's not going to give up on his investment. He's put far too much money into it.
Right, the family is several dozen members. The wealthiest is the widow at just under $3 BB. Grandson Woody certainly got less money from his inheritance. I would venture that more than 1/2 of Woody's net worth is tied up in the NYJ, assuming the NYJ are worth $ 1 BB (I think they're worth less than that, fyi). Regardless, he doesn't have several billion to tap into any NYJ operating shortfall. If the Jets lose a few million in a year where they spend alot of money, it's not a problem for Woody. If they Jets however are structurally at a deficit of $20-$30 MM/year, that's a problem for Woody.
I wouldn't say it's safe to say that. $100 MM is alot of money for Woody. You aren't talking about tapping a few months of interest and capital gains. You're talking about liquidating MAJOR ASSETS or tapping trust funds which he (1) might not want to do or (2) might be legally prohibited from tapping. Woody can probably BORROW $100 MM, especially if he argues that it's money that is going to lock up star players for the next few years -- in other words, it's a 1-time cash outflow -- that will be recouped as they contribute to the team over the next 5 years and the stadium generates nice profits (figure $30 - $60 MM/year). But I'm not sure anybody wants $100 MM in debt nowadays. Look, if the PSL's were all sold Woody would have probably $125 MM or so in money right now. He doesn't. That's the problem.
According to Forbes, the Jets are worth $1.17 billion (9th most valuable sports franchise). A franchise losing money wouldn't be worth $1.17 billion or the 9th most valuable. They may lose money this year with the cost of the stadium and lack of PSL sales, but generally the team MUST be making money. Do you honestly believe Woody Johnson is having a problem coming up with $100 million or whatever it's going to take to ink these deals?
There really isn't a problem as of right now though. You can contend Woody can't come up with the $100 MM all you want, but there's no problem at this point. It's the beginning of June and there's been one offer made and rejected. If it were mid-August, then we can start talking problems. If a loan was required, he would almost certainly be able to get it. Considering the amount of money he's invested, and knowing that people aren't buying PSL's without a solid product, don't you think Woody is going to be doing everything he can to make those deals (including a loan)? Don't you think he wants the Jets to continue to be profitable? PSL's are a one time windfall. Money is not going to prevent these guys from being signed - not unless you're talking in terms of the salary cap which I don't think should be an issue either.
I wouldn't put that past Woody either, he's already been bullying and threatening people (with blackouts among other things) and we're still months away from the start of the season.
The Jets are worth that based on the assumption that they sell all their PSL's and tickets without any concessions. That isn't the case right now. Yes, I do. He needs at least $60 MM and possibly $80 MM in signing bonuses to lock up the core players. If he had all the PSL's sold, he has the money. Since the PSL's aren't sold....... Does that mean the Jets can't sign the players ? Of course not.....without tapping personal funds, the Jets can just take on some debt, and if they sell all the PSL's at the current prices (big IF) it won't be a big deal. You really want to pay those big bonuses and salaries in the uncapped year. Even if the players said they were OK with signing extensions in 2011 or 2012, the Jets might then have a constrictive salary cap so why not avoid it then ? Remember, all these players are signed. The Jets don't have to sign them this year. If Woody is hurting, he may say "let's wait, even if we bump up against the salary cap in a few years." No way that Woody and The Jets thought they'd have over 10,000 unsold PSL's as we hit June, especially coming off an AFC Championship year.
And based on prior performance where I have to assume the team was making money or they'd be worth much less. Well I think you're nuts. It's completely inconceivable to me that a man with the assets and family that Woody Johnson has is having a hard time coming up with $100 MM. We all understand the Jets are out a bunch of money from slow PSL sales. There's no need to keep repeating that. The point is that the one time windfall of $100 MM (or whatever the figure is) isn't going to prevent this guy from running his business in a profitable manor. He stands to lose much more if he doesn't shell out the $100 MM and I'm sure he's well aware of that.
You asked for my opinion. As someone who has managed money for billionaire sports owners, I'm giving it to you. Can Woody get his hands on $100 MM if he absolutely needs it to sign a key player ? Absolutely. Does he need to right now ? No. None of those guys is unsigned right now. If it was Mark Sanchez with 1 year left, maybe Woody has heightened urgency. $100 MM is alot of money. Most of Woody's assets are probably in trust funds. He may be absolutely prohibited from tapping the funds, or he may have to consult with lawyers and wait a while. It's not like he has the money in his local money market fund -- he doesn't. Again: the players are signed. If the PSL's were sold, Woody probably antes up the $$$. Since they aren't sold, he figures wait a few months and see where things stand. $100 MM is probably 10% of Woody's non-NYJ net-worth. That's alot of assets. Even if he knows its coming back to him the next few years (assuming the PSLs are sold), he probably is a bit hesitant about tapping it. I can guarantee you this: no way in hell he thought he'd have to take on debt or use personal funds to pay big signing bonuses in Year 1 of the new stadium.
He's not losing anything by not signing them, except clearing future cap space. He's probably told MT sign them only if it's a steal for us. Otherwise, wait until training camp and revisit the situation. It's not a 1-time windfall, it's a 1-time expense/cash outflow. And it's alot of money. Remember, he's short $125 MM on the PSL's. Woody is wealthy but he's not Bill Gates or Warren Buffet wealthy.
You seem to agree with me that he can and will shell out the $100 MM if need be. So what's the argument? It's early June, there's no problem right now. The players will be signed when they agree to a fair price for both sides. As someone who's managed millions of dollars, I'm sure you've been involved with some large negotiations. They generally don't start and end on the same day with the first offer. Once again, money will not prevent the Jets from signing these guys.
If the PSL's were all sold, I think deals would be done or close to being done with all the key players. So the PSL's not being sold has had an effect. If the signing bonuses totaled $10 MM, Woody could handle that personally. Not $80 MM.
Why do you think the deals would be done? Why do you think a deal isn't close to being done? Are you Woody's personal assistant? Regardless, IT IS NOT A PROBLEM in the beginning of June. I think it has more to do with the uncertainty of everything going on with the CBA right now and all the guys we need to sign. The Revis deal is critical to the Jets' future. It will dictate what the Jets can spend under a salary cap on the other 3 core players. They need to be very careful constructing that contract so it may take some time. This is an especially sticky situation because no one knows what the cap may be.
