I'm not trying to be rude, but you're not as informed as you should be about the financing of the Rose Quarter. Unlike home mortgages, commerical mortgages don't come with free pre-payment. If you wish to re-finance, you have to pay a prepayment penalty, which is the cost of purchasing T-Bills at the imputed interest rate to the expiration of the current mortgage in the amount matching the cash flow of the existing mortgage.
Thank you, Paul Allen, for caring about the team as much as so many of the Blazers fans out there. I would love to know why KP got fired, but I am much more concerned with the team continuing to build towards titles than I am about who the GM is. Ed O.
I don't know the exact amount (as I was no longer working for Pru when the bankruptcy occurred), but was told my a former co-worker the bondholders were made whole.
I should have asked a more precise question. I was wondering if he has a new mortgage (with the same lenders as before or different ones?), or whether he paid them off in cash, which would be unusual I imagine but he would surely be capable of doing so. barfo
There certainly are reasons to be thankful for Paul Allen, but they are starting to dwindle. One thing that is tough to argue, whether you agree with firing KP or not, is that PA handled it very poorly. It seems like a very weird time for a PA appreciation thread.
Just curious, but were other companies made to have their owners secure loans with their personal wealth? I know I would not mix the two personally. Commercial real estate is not my cup of tea and am only giving my perspective. Had a nice job working nights, but daylighted for the Blazers soon after Patterson was named president. It did not get any press, but a new division was created in sales the same time the massive layoff occurred. The Blazers were an absolute clusterf*ck of mismanagement. If the same group that was flushing money down the toilet negotiated that arena deal, I would assume they did not get the best terms. I think Larry Miller makes good decisions financially for the club and hopefull that continues. The financial decisions on the basketball side though have been terrible. Hopefully the new GM is smarter in this regard.
I don't know that Paul Allen handled it poorly at all. We still don't know why KP was fired, which is a mystery, but given that we do NOT know, how can we say it wasn't handled appropriately? I can't envision a scenario where KP lovers would be happy with the way KP was fired, so Allen's handling of it is sort of irrelevant to me. As for the timing of the thread: we've seen a lot of Paul Allen hate the last 24 hours or so. Those of us who appreciate him clearly wanted to communicate that in spite of the avalanche of negativity and chicken littleism. Ed O.
Well, you're entitled to your opinion. But almost every sportswriter and the vast majority of Blazers fans disagree with you on how the firing was handled. I can see that if you don't have a problem with how it was handled, then a PA appreciation thread could make sense.
Phil Knight as owner would be ultimate win territory. Unlike PA he built his epic company from the ground up. He's also rich and uh, can make or break guys careers beyond just a single team. Make it happen reality! Phil Knight to buy Blazers lets get this puppy going!
Right this happened at the local level so bond holders and senior debt holders were first in line you know like is supposed to happen. Now Federal and International levels, well I hope you are part of the Illuminati, cause they taking the whole bitch! Fuck a pound of flesh they want the whole damn thing!
I find it hard to dispute that the firing was handled badly. What would have been the down side of waiting until this morning to give KP is walking papers? Go Blazers
He didn't receive seller financing. He likely went out and put down 30-40% in equity and took out the rest in financing.
Generally, commerical loans are non-recourse. However, since Paul Allen was asking for a rate reduction of close to 400 basis points, he has to expect to give something back. If those bondholders are going to give up that much return over the life of the loan, it's not unreasonable to request that it becomes a recourse loan. It's an issue of creditworthiness. Bert Kolde negotiated the previous agreement. It wasn't the greatest agreement, but it was pretty standard. It also had the prevailing interest rate.
Err ... thanks Paul for spending all that money on the team and being passionate and running the organization more like a fan than a business ... and then stepping on your dick yet again
LOL! I suppose it's a good thing there weren't union employees involved, otherwise they go to the front of the line.
