Fitch Affirms National Football League Rating at 'A+'; Stable Outlook.

NEW YORK -- Fitch Ratings today affirms the 'A+' rating and Stable Rating Outlook on the National Football League's (NFL, or the league) $598 million of senior unsecured notes, maturing through 2017. The debt was issued via private placement in 2001 and 2002, and the proceeds have been used by the NFL to provide additional private funding for the construction of new football stadiums through support of the NFL's G-3 Stadium Finance Program.

'The NFL continues to represent the high watermark in terms of sports credits, given its extremely strong economic model, labor peace, and the reported recent renewal of two key broadcasting contracts at record-setting prices, which represent an approximate 25% increase over comparable previous contracts,' said Dan Champeau, Managing Director, U.S. Public Finance, Fitch Ratings.

Fitch's 'A+' rating reflects the NFL's position as the most popular professional sports league in the U.S. It has a strong and enviable economic model, strengthened by robust historical multiyear national broadcast contracts, significant revenue sharing among member clubs, a proven track record of conservative financial policies, and a solid collective bargaining agreement with its players union which includes the only 'hard' salary cap in U.S. professional sports. In addition, the debt structure benefits from the NFL's first-in-line access to league-managed revenues, strong forecasted debt service coverage, adequate legal provisions and covenants, and ample reserve levels.

Primary risks include the league's reliance on continued favorable renewals of national media contracts (two of which reportedly have been renewed through the 2011 season), the potential for a league-wide work stoppage, the potential for increased league debt levels, and possible changes in the league's constitution and by-laws relating to the commissioner's assessment rights, which is unlikely. In addition, decreased revenue sharing and/or notable changes to the league's collective bargaining agreement with the player's association, which move the league's clubs toward less financial parity, less player cost certainty and/or a greater percentage of league generated revenues allocated to pay players, would likely negatively affect the 'A+' rating.

In addition to the recently announced CBS and Fox television contracts, DirecTV, a satellite cable provider, announced a five-year $3.5 billion extension and expansion of rights to broadcast NFL Sunday Ticket through the 2010 season. DirecTV's current contract, ending in 2007, was approximately $1.9 billion for five seasons (the recently announced contract will supersede the current contract in the 2006 and 2007 seasons). All three contracts have added features favorable to NFL viewers, such as high definition broadcasts. In addition, DirecTV has the ability to develop and offer new interactive and service improvements to the satellite package in the new contract term.

The NFL's outstanding senior unsecured debt was issued to support the league's G-3 Stadium Finance Program and to refinance borrowings under the Stadium Funding Credit Facility. The G-3 Resolution authorizes the NFL to advance up to 50% (with a maximum advance of $150 million) of the total private contribution to a stadium construction project, as evaluated on a case-by-case basis. Participating clubs, currently the Arizona Cardinals, Chicago Bears, Denver Broncos, Detroit Lions, Green Bay Packers, New England Patriots, Philadelphia Eagles, and Seattle Seahawks, have borrowed G-3 funds provided by the league. Given the potential of new facilities being built for the New York Jets, Dallas Cowboys, and other clubs in the coming years, additional debt may be issued to continue to support the G-3 Program.

'The NFL's stadium finance program is unique to the NFL and in general, new NFL stadiums that have opened over the past few years have largely been successes,' Champeau said. 'The G-3 program is a good example of the cooperation and generally unified view of the league's owners and has helped provide NFL member clubs with the enhanced economics and franchise stability that new stadiums tend to bring,' added Champeau.

The NFL is a not-for-profit unincorporated association of 32 member teams and was originally founded in 1920 with 18 franchises. The league's current structure was created in 1970 as a result of the merger between the American Football League and the NFL.