Quote:
Originally Posted by Fishingfool
|
Without thumping my chest, you're talking to a CFO of a very large urban academic hospital, I'm used to evaluating financials.
The operating income referenced by Forbes here is the three year operating income from 2019 through 2021.
Fred Smith and Dwight Schar sold their stakes in 2021. In March of 2022, Anheuser Busch declined to renew their sponsorship with the team. Medliminal severed its sponsorship arrangement in February of 2022.
Meanwhile here is the Commanders home game attendance, trended by year:
2012 RG3: 637K
2017: 601K
2019: 523K
2021: 422K
2022: 523K (NINE home games)
So the decline in sponsorships and attendance isn't fully reflected in the time period chosen by Forbes.
Further, Operating Income does not include cash payments for the repayment of debt principal. So if I make $290M in operating income in three years, that's great, but if I have to repay $350M in principal payments to the bank during those same three years, I'm ($60M) poorer after those three years than I was at the beginning of them.
He owes more to the bank than $290M could cover, and it was only getting worse.