By Andy Benoit, Associated PressThe NFL’s two biggest lenders are seeking $2.8 billion in additional loans to support its growing business of unsecured auto loans.
In a letter obtained by The Associated Press, the league’s two largest lenders, JPMorgan Chase & Co. and Bank of America Corp., wrote to NFL commissioner Roger Goodell seeking to raise the minimum interest rates on loans made to teams.
The NFL is trying to get the minimum rate to 5.5 percent, up from 3.75 percent.
Under the proposal, NFL teams would be allowed to borrow up to $500 million from banks to pay for the costs of the games.
The banks would then take a cut of the loan, up to 25 percent of the principal amount.
The proposal is the latest sign that the NFL is reaping the benefits of the economic boom.
The NFL announced in October it would increase the size of its commercial lending program to help teams and owners get their game-day needs met, with a target of increasing the amount of money raised by the program to $1.5 billion by 2019.
The league has also announced plans to make the NFL Network a separate company from the NFL.
The loan proposal also would allow the NFL to make loans to teams for future stadium projects, including a $1 billion stadium in Miami.