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Re: Finally it has been done. The Federal League is Real!
A well researched article, but it comes across with negative undertones, perhaps they are trying to "call a spade - a spade", but -
I have to agree, that if the individual teams do not have access to an irrevocable 5-year line of credit of at least $1 million dollars (and the leases might require Surety Bonds), they are not too likely to survive. If they do, in this current “tough to get credit” market, then they must have assembled an awesome business plan – or had access to significant collateral. That said, for those with good or significant collateralized credit lines, credit is cheap (i.e. low interest rates), so that is a potential plus for them. As for the smaller markets, when it comes to sponsorship the individual sums are likely to be smaller but the competition among those seeking sponsorship is also smaller, and it is much easier to build a proud, loyal, local following. As some of the posters on this board can attest, millions of dollars are put into sponsorship of small track auto racing supporting hundreds of small time race teams, particularly among much of demographics being targeted by this startup league. Can a hockey league make it on a $5050 weekly salary cap? Perhaps, if it is a labor of love, and sufficient startup capital – financial, talent (players and management/administration), fans and sponsorship are available, I for one am wishing them the best of luck.
Originally posted by AmericanCollegeHockey
I have to agree, that if the individual teams do not have access to an irrevocable 5-year line of credit of at least $1 million dollars (and the leases might require Surety Bonds), they are not too likely to survive. If they do, in this current “tough to get credit” market, then they must have assembled an awesome business plan – or had access to significant collateral. That said, for those with good or significant collateralized credit lines, credit is cheap (i.e. low interest rates), so that is a potential plus for them. As for the smaller markets, when it comes to sponsorship the individual sums are likely to be smaller but the competition among those seeking sponsorship is also smaller, and it is much easier to build a proud, loyal, local following. As some of the posters on this board can attest, millions of dollars are put into sponsorship of small track auto racing supporting hundreds of small time race teams, particularly among much of demographics being targeted by this startup league. Can a hockey league make it on a $5050 weekly salary cap? Perhaps, if it is a labor of love, and sufficient startup capital – financial, talent (players and management/administration), fans and sponsorship are available, I for one am wishing them the best of luck.
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