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Debt concerns emerge regarding Khan's bid for the Rams

As the NFL commences the process of inspecting the details of the bid compiled by would-be Rams owner Shahid Khan, issues have emerged regarding the structure of the deal.

Daniel Kaplan of SportsBusiness Journal reports that the league is scrutinizing the debt that Khan will be incurring as he raises the necessary cash.  Per Kaplan, Khan would be borrowing against Flex-N-Gate, the automotive parts company he owns.

“Mr. Khan has not completed his financial arrangements, and until then, any discussion about it would be pure speculation,” NFL spokesman Brian McCarthy told Kaplan.  McCarthy also explained that the league treats debt differently based on whether the collateral is the team or some other asset, like a separate business.

The wild card continues to be minority owner Stan Kroenke, who has the power to match Khan’s offer and purchase the 60-percent stake Khan hopes to buy from Chip Rosenbloom and Lucia Rodriguez.  Kroenke also has the power to tell Khan to buy out Kroenke’s 40 percent.

Meanwhile, St. Louis Blues owner Dave Checketts remains on standby, with a bid that reportedly includes Eric Dickerson and Marshall Faulk, who recently made it clear that he would have done more than fire the trainer after a 1-15 season.

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14 Responses to “Debt concerns emerge regarding Khan's bid for the Rams”
  1. phillyeagleschamps says: Mar 1, 2010 12:36 PM

    Sell the team to Dieter Brock.

  2. ShawshankReception says: Mar 1, 2010 12:45 PM

    KHAAAAAAAAAAAAAAAAAAAN!!!!!

  3. Outlaw Jersey Whales says: Mar 1, 2010 12:50 PM

    You mean Khan has run through all the money he made selling Pakistan’s nuclear weapons technology to North Korea, among others? So soon?
    Shocking!

  4. DJSlyBri says: Mar 1, 2010 1:51 PM

    What a shock that the non-white guy gets all this speculation. If Khan were white, he would already own the team and have attended 6 league meetings.

  5. NoHomeTeam says: Mar 1, 2010 1:59 PM

    I perked up when I read the headline, but it looks like this isn’t much to hang a hat on. Unless I’m reading the article wrong, it appears that the league prefers Khan’s approach of borrowing against a tangible asset like his parts company to the kind of economic voodoo that lets a buyer borrow against the future earnings of the property (i.e. the team) that they’re trying to purchase.
    It sounds like Khan is in pretty good shape, unless it turns out his billion-dollar parts company isn’t really all that solvent. I haven’t bothered to research just what kind of a “parts company” this is. I was assuming that it was a Pep-Boys/Autozone kind of enterprise, which should be pretty solid in this kind of climate. If, on the other hand, Khan’s company is a OEM supplier to the auto industry, he could be in a bind. GM & Chrysler hosed a number of their primary suppliers with their respective bankruptcies, so Khan could have been left holding a pretty large bag. It could be even worse if his company supplies, say, ignition switches to Toyota U.S.A.
    Maybe there’s hope that this thing falls through, after all.

  6. phillyeagleschamps says: Mar 1, 2010 2:15 PM

    After years of selling Big Gulps, Khan’s dream of owning a NFL team is slowly evaporating.
    “You Come To Steal!”

  7. kramer says: Mar 1, 2010 2:31 PM

    i’d be more concerned with his muslim background……as you all know these nutbags want to subjigate the planet to an islamic state by whatever means necessary…

  8. Matt says: Mar 1, 2010 2:42 PM

    # ShawshankReception says: March 1, 2010 12:45 PM
    KHAAAAAAAAAAAAAAAAAAAN!!!!!
    **********************************************
    Haha, if that’s what I think it’s from, I wonder how many other people will get it. Maybe there are more nerds who are into football than I originally would have thought.

  9. Chris Fiorentino says: Mar 1, 2010 3:03 PM

    Sounds to me like the following is the way it will play out:
    Stan Kroenke is waiting to see just how flush Khan is. If he is really flush, he will force him to buy his 40%. If he is struggling to get up the 60%, Checkett’s bid may become a dark horse. However, Kroenke will then try to force HIM to purchase his 40%, which didn’t sound possible when Checkett’s bid was being floated before.
    I think Kroenke’s plan/goal/whatever is to buy the other 60% of the Rams, but he wants the best price and he doesn’t want to beg the other owners to be able to keep ownership of the Denver teams.

  10. NoHomeTeam says: Mar 1, 2010 3:13 PM

    kramer says: “i’d be more concerned with his muslim background……as you all know these nutbags want to subjigate the planet to an islamic state by whatever means necessary…”
    I’ll have to assume that you’re just trolling, here. I mean, you don’t actually believe this, do you? Perhaps my browser doesn’t pick up the [sarcasm] html tag [/sarcasm]

  11. phillyeagleschamps says: Mar 1, 2010 4:05 PM

    Question:
    If I am a player and my owner is Muslim, and we lose on a regular basis, does that mean there may be a bomb in my locker?

  12. kramer says: Mar 1, 2010 5:02 PM

    no home team……….are you that naive….you must be one of those pansy boys that welcomes everyone with open arms…ask any muslim if what i posted was wrong… they are nut bags

  13. bearsbears says: Mar 29, 2010 6:42 PM

    did I just enter a kkk meeting?

  14. Mista T says: Apr 10, 2010 5:25 PM

    re: “did I just enter a kkk meeting?”
    You can always tell when liberal fascists lose a debate, when they start hurling insults at the other side.
    Last that I heard, the NFL is a privately owned league. If NFL owners want have concern between terrorism and inviting a Moslem owner, it’s there right. We do sit in 70,000+ seat stadiums, which would make attractive targets for Moslem suicide bombers. You’d better believe that the NFL will be thoroughly investigating Khan for connections to terrorist groups.
    The PC crowd can always opt to support MLB, NCAA, or NBA.

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