Skip to content

Leonsis reportedly refinances Caps debt with $100M loan

Jul 18, 2013, 6:51 PM EDT

Ted Leonsis Getty Images

Some exciting financial news that’s sure to get you out of your chair:

Washington Capitals owner Ted Leonsis has reportedly refinanced his hockey club’s debt with a sizeable loan, according to Forbes.

Leonsis, 56, is the founder, majority owner, chairman and CEO of Monumental Sports & Entertainment, a group that owns the Capitals, the NBA’s Washington Wizards, the WNBA’s Washington Mystics and the arena all three teams call home — the Verizon Center.

As for Leonsis’ Caps-related debt and loan, here’s more from Forbes’ Mike Ozanian:

Sources have told me that Ted Leonsis refinanced the debt on his hockey team last month with a $100 million package led by Citigroup. The loan was oversubscribed, meaning more people wanted to buy the debt than was available. And the refinancing was bigger than the previous loan, thereby increasing the amount of debt on the hockey team.

Leonsis bought the Capitals for $85 million in 1999 and we valued the team at $250 million last November.

Ozanian notes the NHL in general appears to be taking on more debt, something PHT wrote yesterday in a report that the league had increased its credit facility.

According to Bloomberg, the facility was raised from $400 million to $600 million:

The league also received a better rate on the agreement with Citigroup Inc. (C), which was completed last month. The new facility is priced at the London interbank offered rate, or Libor, plus 250 basis points. The previous facility was $400 million at Libor plus 300 basis points.

Professional sports leagues create loan pools by using collateral such as national broadcast contracts to secure credit at better terms than most teams could individually.

The NHL declined to comment on the report.

  1. operwapitsai - Jul 18, 2013 at 7:13 PM

    wut

  2. ibieiniid - Jul 18, 2013 at 7:24 PM

    i dont often theorize conspiracies… but could the lockout have been a way to prove to creditors that the league’s fanbase is as solid as can be, guaranteeing continued growth and ::ahem::, higher ticket prices for their very in-demand product?

    • bmoreredfury311 - Jul 18, 2013 at 8:11 PM

      I think that’s a fair statement for you to say and i wouldn’t be surprised at all by that. Its the American way.

  3. kaptaanamerica - Jul 18, 2013 at 11:56 PM

    Great for the stability of the team and league if the have easy access to credit.

  4. esracerx46 - Jul 19, 2013 at 12:01 AM

    Halford, I had no idea you spoke lawyer. Also, I’ve said this for a while. This isn’t directed at any team in particular, but their are a few that are prime examples…… Increasing your total debt and using your future tv contracts as collateral just seems like a house of cards. The Dodgers are the biggest example. If all that money is coming from tv deals, why didn’t the tv companies buy the Dodgers. Perhaps I’m too much of a simpleton to understand. I mean, if Leonsis bought the team for 85 million and just increased it to 100 million….. Idk, just seems like if you owe more than you bought something for 15 years ago you’re not really getting anywhere with the principal. And for me, until that debt is paid, you don’t own anything. If I buy a house, the bank just lets me stay there until I have paid off the mortgage, then it’s mine…sort of….. Then I have to pay property taxes to live in my own home. Again, perhaps I’m just a simpleton and don’t get it. After all, I am just a dumb welder.

    • jpelle82 - Jul 19, 2013 at 12:00 PM

      the franchise is worth 250 million, he paid 85. if he increases his debt to 100 he is still 150 million in the black if he sold it. costs have gone up in the past 14 years plus inflation. dont read more into it than that. the nhl increased its credit limit by 200 million – more curious about what that means…

Featured video

Bettman hears the boos in Philly
Top 10 NHL Player Searches
  1. S. Crosby (1704)
  2. L. Stempniak (1473)
  3. D. Roy (1396)
  4. R. Nash (1276)
  5. M. Ribeiro (1197)
  1. A. Rome (1109)
  2. D. Cleary (1087)
  3. B. Morrow (1049)
  4. C. Franson (1044)
  5. B. Dubinsky (1038)