We have a number of clients—from hotel operators to restaurateurs—that are concerned about defaulting on their loans if there were a lost NFL season
Orlando, FL (Vocus/PRWEB) June 22, 2011
NFL owners are meeting this week to discuss the status of negotiations with their players for a new collective bargaining agreement. All 32 team owners and representatives were advised to be prepared to stay an extra day if necessary to determine whether a deal can be struck before a season is lost. Covendium, the nation’s largest debtor-side commercial debt restructuring and advocacy firm, says that while cynics like to call the lockout an argument between millionaires and multimillionaires, what doesn’t get proper coverage is the challenge for many small businesses that rely on the NFL to keep their business running.
“We have a number of clients—from hotel operators to restaurateurs—that are concerned about defaulting on their loans if there were a lost NFL season,” recounts Doug Long, President of Covendium. “Our clients have already seen a drop in revenue from the economic downturn, and the banks are not willing to bridge any gap caused by the lockout—for those clients we must go to private capital to line up emergency lines of credit.”
And the teams, neighboring businesses and vendors aren’t the only businesses that will be affected by the lockout. “A lot of the players did all the right things: lived within their means, invested in commercial properties or small businesses and find themselves in the same situations as any other entrepreneur,” says four-time Pro Bowl player Lawyer Milloy of the Seattle Seahawks. “Some players are using NFL salaries to keep their properties and businesses afloat. If there is a lockout, the financial backlash won’t just be felt by the player and his family.”
NFL owners may also find themselves scrambling to meet financial obligations during the lockout, but they built into the 2009 television contract a clause that would still pay the owners if there was a lockout. The validity of this clause is currently under appeal, but most experts believe that the owners will not be as hard hit as the players and small businesses that rely on the NFL as their primary means of income.
“Covendium has built its business to support the small business entrepreneur” says Jonathan Gorman, Chief Financial Officer of Covendium. “As the likelihood of an NFL lockout increases, more businesses that rely on a large portion of their revenue during the football season are coming to us for help in arranging bridge financing or renegotiating the terms of their debt. And while I’ll never turn away a client, I’d rather be watching football on Sundays.”
For more information about the financial consequences of the NFL and NBA lockouts, or any of Covendium’s products or services, call them at (407) 284-4000 or view them on the web at http://www.covendium.com.
Covendium specializes in comprehensive commercial debt restructuring and resolution for clients whose financial model has been adversely impacted by debt service payments that have become unsustainable.
For some clients, all they need is an experienced negotiator to provide their lender with the reality of the financial situation and the tool-set to restructure their obligations. For other clients, Covendium may assist in the replacement of the debt from a bank to a private funding source.
Their team of professional advisors has successfully restructured billions in transactions, with dozens of banking institutions (including major national, regional and community banks) and over 30 separate non-bank financial counterparties.
Bad things happen to good people. Covendium is a premier national debt resolution firm that helps their clients with everything from commercial foreclosure in Chicago to recapitalization in Miami to unpaid principal balance in Phoenix to discounted pay off in San Francisco.
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