NFL borrows from Chase Manhattan to provide money for Ravens' loan

August 18, 1999|By Jon Morgan

The NFL, which last month approved a loan to prop up the debt-strapped Ravens, has borrowed the money from Chase Manhattan Corp., according to a league spokesman.

The terms provide for up to $85 million in assistance, although both a league spokesman and Ravens president David Modell say the team will probably use much less. The bank has provided a $55 million loan, due next year, and $30 million in revolving credit, said NFL spokesman Greg Aiello.

Aiello said the league anticipates the team will require less than $55 million.

Ravens owner Art Modell is seeking an investor to buy a stake in the team, and will use the proceeds of that sale to pay the league back with interest.

The bailout became necessary when the team fell below a debt-to-operating profit ratio required by lenders in a $185 million refinancing concluded in 1997.

Some of the lenders, holding about $55 million in notes, declared a portion of the debt to be in technical default and demanded repayment. The league stepped in to prevent foreclosure.

Pub Date: 8/18/99

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