generating over $290 million. However, player payroll was at $133 million in 2014. This was the 13th highest in the league. The team plans to continue to maintain a player payroll in this range as long as attendance does not decline. The owners borrowed approximately $300 million to build Busch Stadium III. The team pays more than $20 million per year in principal and interest on the two instruments that were used to finance the club's portion of the new stadium. The club operates on tight margins and is well managed financially. Further, with annual attendance figures for the last ten years at 3 million plus and very high local television ratings, revenues are close to maximized. Without cutting expenses elsewhere, the team has limited flexibility and cannot increase payroll without losing money. case questions 1. Has the Cardinals' decision to use debt financing hurt the on- field performance of the organization? If so, how? 2. What form of debt financing did the team most likely use to raise its $300 million portion of the stadium construction costs? 3. What equity financing options could the club have considered to raise some of the capital to build the new stadium