Lobo8 -Zomby - ^ I thought the lost huge money on pride, like 30 - 50 million for a video library basically.
They did. Looks like that's one of many things that added to their debt.
90 million.....
90 million.....
Rcs476 -Since when is a loan NOT debt??!?Daverr - just curious, was looking into it and a couple articles came up, one saying they have 425 million due in 2015...A loan is not debt, it is a loan that is coming due.
seems high, true or false? or any1 know?
When the cost of debt is low single digits, and you are generating a double digit returns on investment, you would be a fool not to leverage your company.
so as long as your making $ you are not in debt...... no
you can make money and still be in debt, clearly
or why else wouldn't you pay it off
interest would kill you on 400 mill
im sure they structured it so they could pay it off by 2015, but still,
again numbers are lower than usual these days
and aint getting better with gsp and maybe as retiring
"interest would kill you on 400 mill"
If you are generating a 20% ROI, then paying off a loan with a 5% interest rate is no problem. Every extra dollar you invest gets you an incremental 15% return. That is why businesses leverage themselves.
Daverr -
im sure they structured it so they could pay it off by 2015, but still,
again numbers are lower than usual these days
and aint getting better with gsp and maybe as retiring
They aren't going to pay off shit.
They'll just roll it over into a new loan.
My 2 min research suggests they have also paid out dividends of @$270 mil to the owners as well.
Common form of financing... 
MasterofMartialArts -Yeah, I realized after the posting that I screwed up. I forgot that people routinely use the loans to invest and do not keep it liquid. Whoopsie.Rcs476 -Since when is a loan NOT debt??!?Daverr - just curious, was looking into it and a couple articles came up, one saying they have 425 million due in 2015...A loan is not debt, it is a loan that is coming due.
seems high, true or false? or any1 know?
Dougie -
I remember reading that they borrowed against the company to 1) get cash to do other things they want so they increase their business, and 2) discourage people from buying the company.
It may have some validity in a public company with shares up for grab by anyone, but (2) can't apply here since the UFC is a private company. It cannot be bought unless they decide to sell.
JOB - Fuck no, they are an extremely profitable company.This
Lobo8 - Sauce?Yes?
Rcs476 -Daverr - just curious, was looking into it and a couple articles came up, one saying they have 425 million due in 2015...A loan is not debt, it is a loan that is coming due.
seems high, true or false? or any1 know?
"A loan is not debt."
Whoah, watch out folks! We got us a financial badass over here!
Ocean6 -Rcs476 -Daverr - just curious, was looking into it and a couple articles came up, one saying they have 425 million due in 2015...A loan is not debt, it is a loan that is coming due.
seems high, true or false? or any1 know?
"A loan is not debt."
Whoah, watch out folks! We got us a financial badass over here!
Maybe he is talking about the kind of loans he gets from Mommy and Daddy...
Microsoft and Apple just sold billions of bonds last month despite still having billions in the bank.
There are reasons to do this. With apple and Microsoft they can get money really cheap. Like at 2.3 % interest. They can invest that money and make more than than they are paying.
In the case of apple and Microsoft the have billions of dollars sitting in offshore accounts. If they move the money into the usa they get hit with a tax fee of 25%.
So sometimes they borrow money to pay dividends or to buy other companies because borrowing the money is cheaper than moving offshore money onshore and paying the taxes.
some people on here might want to browse these pages..
most companies are in debt dummies
ive heard u get huge tax breaks when u r in debt. so the debt may be on purpose, and actually saving them $
if they dont use debt, they have to use their own capital to put on shows...instead, they dividend out all of their net profits and borrow to put on shows...not rocket science folks...
JOB - Fuck no, they are an extremely profitable company.You sound smart.