Thank you for this information. It is hard for me to take a meaningful position without the fiscal facts. Most especially there is a lack of detailed Revenue and Debt Service Projections as you point out. The PR outreaches are a waste of time without the data.
I suspect the JP Morgan report (cited in the Washington Post and closely held by the governor’s office) may have a more complete assessment of the risks to the lenders. In my experience, lenders model project financing to aim at a 2x debt coverage, which is seldom realized. Sensitivity model runs with alternative revenue projections tied to key revenue drivers will have tested the downside for the banks. The city and commonwealth $1.1 billion backstop to protect the bond holders must be a result of JP Morgan’s analysis of the risks. It would be a clear public service for our representatives to release that report and not just the flimsy stuff they’re now showing us.
Thank you for this information. It is hard for me to take a meaningful position without the fiscal facts. Most especially there is a lack of detailed Revenue and Debt Service Projections as you point out. The PR outreaches are a waste of time without the data.
I suspect the JP Morgan report (cited in the Washington Post and closely held by the governor’s office) may have a more complete assessment of the risks to the lenders. In my experience, lenders model project financing to aim at a 2x debt coverage, which is seldom realized. Sensitivity model runs with alternative revenue projections tied to key revenue drivers will have tested the downside for the banks. The city and commonwealth $1.1 billion backstop to protect the bond holders must be a result of JP Morgan’s analysis of the risks. It would be a clear public service for our representatives to release that report and not just the flimsy stuff they’re now showing us.
Leonard Crook
So focused on the essentials, and so well said. Thank you.
#1 - modern stadiums do not have a lifespan of 35 years…