Facility-based financing system

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

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705 36, 705 40, 705 45, G06F 1760

Patent

active

061547301

ABSTRACT:
A system for employing the projected receipts of a public facility to finance the construction of the facility itself, or the acquisition of a team to play in the facility. A preferred system includes: a method for projecting future cash flows (e.g., gate receipts) associated with the operation of the facility; pooling rights to receive those cash flows; transferring the pooled rights to a special purpose vehicle; and issuing securities on behalf of the special purpose vehicle in order to generated revenues for the construction and/or operating costs of the facility, or for the purchase of the team itself. The system also includes a computerized method for the ongoing implementation of such a financing system, including the steps of: inputting estimated cash flows and actual cash receipts; comparing the estimated and actual values in order to determine adjusted amounts to allocate between investors in the special purpose vehicle and ongoing operations. The invention farther provides a facility (such as a stadium) and/or a team funded or acquired by such a system.

REFERENCES:
patent: 5812988 (1998-09-01), Sandretto
patent: 5940810 (1999-08-01), Traub et al.
Davis Scott S., Financing a recycling/ MSW composting Facility, pp. 1-4, Feb. 1992.
Kamenetsky, Hannah, Bonds to partially fund new Louisville, Ky., football stadium, pp. 1, Feb. 1996.
Carroll, Edmund, Investor surveys and the discount Rate, pp. 1-7, Sep. 1992.
Fitzgerald, John C., How Infrastructure Financing Trends Affect Housing Affordability, pp. 1-4, Feb. 1992.
Business Wire, Jul. 30, 1998, "Bear Stearns Sells First-Ever Asset Backed Financing for a Sports Facility".
Stadium & Arena Financing, Mar. 8, 1999, "Fitch Sets Arena Debt Criteria".
AP Online, Apr. 27, 1998, "MLB's Future Revenues Secure Loans".
Entertainment Law & Finance, Aug. 1997, "David Bowie $55 Million Haul; Using a Musician's Assets to Structure a Bond Offering".
The San Francisco Examiner, Mar. 25, 1997, "Smart Bonds; David Bowie's brokers set their sights on Silicon Valley's intellectual property".
San Antonio Express-News, Dec. 15, 1998, "Taxpayers won't pay for Denver's Pepsi Arena".
Private Placement Letter, Nov. 2, 1998, "Stadium Finance to Grow Within ABS Market".

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