242 PARTI Application of Financial Management in Sport Financing an NBA analysis
ID: 2777036 • Letter: 2
Question
242 PARTI Application of Financial Management in Sport Financing an NBA analysis 3. Determine the amount of financing that w hat will be generate that willbe Devise a public financing plan for a new NBA arena in the city of from each source. These amounts should sum to the toh amount that must be financed. Sacramento. The arena will have a total cost of $350 million, and the public will finance 60% of the construction cost. Both the City of Sacramento and Sacramento County will participate in the 4. Determine the timing: when money nancing of the arena. Devise a public financing plan that utilizes least three different sources SE QUESTIONS Determine the total amount that must be financed. Determine which sources will be used and what changes to hose sources must be made (e.g., raising hotel taxes 0.5%). the timing: when money will be collected fr each source and when it will be paid back. For insa if a general obligation bond is used and i s paid for an increase in hotel taxes, what is the annual paymer necessary to pay it off? Create a table showing the sources of financing amount financed from each source, the annual pame amounts, and the time period of those payments 5.Explanation / Answer
Answer-4 &5:
Source of Finance
Amount
Collection of Fund
Timing for pay back
General Obligation Bonds
$ 105,000,000
Fund shall be collected as soon as bonds are issued and applications are made
These bonds would be paid in short term say 1 year on their dues date
Revenue Bonds
$ 105,000,000
Money shall be collected after issuing the bonds and applications made by the investor
These bonds would be paid in long term say 3 years on their dues date
Loan from Sacremento County
$ 140,000,000
Money shall be collected as soon as the loan is sanctioned from the county
This loan shall be paid in installments starting from today till the whole principal and interest is repaid.
Total
$ 350,000,000
Answer-4 &5:
Source of Finance
Amount
Collection of Fund
Timing for pay back
General Obligation Bonds
$ 105,000,000
Fund shall be collected as soon as bonds are issued and applications are made
These bonds would be paid in short term say 1 year on their dues date
Revenue Bonds
$ 105,000,000
Money shall be collected after issuing the bonds and applications made by the investor
These bonds would be paid in long term say 3 years on their dues date
Loan from Sacremento County
$ 140,000,000
Money shall be collected as soon as the loan is sanctioned from the county
This loan shall be paid in installments starting from today till the whole principal and interest is repaid.
Total
$ 350,000,000
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