NFL PRESENTATION
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Week6Assignment-Capital_Budget.xlsxSheet1
| Jaguars NFL | |||||||||||
| CAPITAL BUDGET | |||||||||||
| Projected Capital Funding Sources | |||||||||||
| Main Sponsorships | 315,000,000 | ||||||||||
| City of Birmingham Loan | 100,000,000 | ||||||||||
| Jaguars Initial Investment | 35,000,000 | ||||||||||
| Community Sponsors | 25,000,000 | ||||||||||
| Parking Garage Revenue Bond | 15,000,000 | ||||||||||
| Total Capital Funding | 475,000,000 | ||||||||||
| Projected Capital Expenditures | |||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
| Stadium (10 Year Life) | (295,000,000) | ||||||||||
| Parking Garage (10 Year Life) | (20,000,000) | ||||||||||
| Incremental Cash Flow | (315,000,000) | 68,800,000 | 10,060,000 | 55,360,000 | 105,190,000 | 160,000,000 | 201,080,000 | 195,380,000 | 212,140,000 | 221,340,000 | 196,520,000 |
| Culmulative Cash Flow | (315,000,000) | (246,200,000) | (236,140,000) | (180,780,000) | (75,590,000) | 84,410,000 | 285,490,000 | 480,870,000 | 693,010,000 | 914,350,000 | 1,110,870,000 |
| Present Value Interest Factor | 0.9346 | 0.8734 | 0.8163 | 0.7629 | 0.713 | 0.6663 | 0.6227 | 0.582 | 0.5439 | 0.5083 | |
| Discounted Cash Flow | (315,000,000) | 64,300,480 | 8,786,404 | 45,190,368 | 80,249,451 | 114,080,000 | 133,979,604 | 121,663,126 | 123,465,480 | 120,386,826 | 99,891,116 |
| Culmulative Cash Flow | (315,000,000) | (250,699,520) | (241,913,116) | (196,722,748) | (116,473,297) | (2,393,297) | 131,586,307 | 253,249,433 | 376,714,913 | 497,101,739 | 596,992,855 |
| Cost of Capital | 15.00% | ||||||||||
| Payback Period | 6.80 | ||||||||||
| Discounted Payback Period | 8.4 | ||||||||||
| Net Present Value | $269,751,327.31 | ||||||||||
| Internal Rate of Return | 15.2% | ||||||||||
| TEN YEARS FINANCIAL PROJECTION | |||||||||||
| year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
| revenue 'millions' | 511.88 | 453.06 | 498.36 | 548.19 | 603 | 644.08 | 638.38 | 655.14 | 664.34 | 639.52 | |
| Variable cost | $102.38 | $90.61 | $99.67 | $109.64 | $120.60 | $193.22 | $127.68 | $131.03 | $132.87 | $127.90 | |
| fixed cost | $400.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | $200.00 | |
| depreciation | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | |
| EBIT | -$70.50 | $82.45 | $118.69 | $158.55 | $202.40 | $170.86 | $230.70 | $244.11 | $251.47 | $231.62 | |
| tax at 21% | -$14.80 | $17.31 | $24.92 | $33.30 | $42.50 | $35.88 | $48.45 | $51.26 | $52.81 | $48.64 | |
| PROFIT AFTER TAX | -$55.69 | $65.13 | $93.76 | $125.26 | $159.90 | $134.98 | $182.26 | $192.85 | $198.66 | $182.98 | |
| ADD DEPRECIATION | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | $80.00 | |
| CASHFLOWS | $24.31 | $145.13 | $173.76 | $205.26 | $239.90 | $214.98 | $262.26 | $272.85 | $278.66 | $262.98 | |
| Narrartive: Jacksonville Jaguars Revenue for 2019 was $443 according to statista.com, gain in revenue from the renovation of the new stadium compared to maintaining the status quo was used to project incremental cash flow for year 1-10. Average Renovation Cost for NFL Stadium was $266 million according to the National Sports Law Institute of Marquette University Law School(NSLI). Birminham is a low-sized city coupled with 12 year inflation factor hence $295 million was derivied as appropriate. | |||||||||||
| Gough C.(2020) Revenue of the Jacksonville Jaguars2001-2019. Statista. Retrieved from: https://www.statista.com/statistics/195269/revenue-of-the-jacksonville-jaguars-since-2006/ | |||||||||||
| Reider N.(2009) An Analysis of Sports Facility Costs and Development from 1989-2009. NSLI. Retrieved from: https://law.marquette.edu/assets/sports-law/pdf/sports-facility-reports/v10-sports-facility-costs.pdf | |||||||||||
Capital Structure
Main Sponsorships City of Birmingham Loan Jaguars Initial Investment Community Sponsors Parking Garage Revenue Bond 315000000 100000000 35000000 25000000 15000000
