In 2017, the New England Patriots purchased two Boeing 767 planes for approximately $10 million, becoming the first National Football League (NFL) franchise to do so.
The team will use the planes to travel round trip to its ten away games (and to any potential playoff or Super Bowl games) during the 2017 – 2018 season. Like other NFL teams, if the franchise did not own these planes, the team would charter (rent) planes for team travel. These charters would have cost the Patriots approximately $4 million for the season. When the planes are not in use by the team, the Patriots management may rent out the planes to other parties.Owning Maintain a plane can involve several high costs such as fuel, maintenance, storage, insurance and personnel to operate the plane. A Boeing 767 can hold up to 24,000 gallons of Jet fuel and according to Boeing.com, enough fuel to fill 1,200 minivans.
Jet fuel cost ~$5.00/ gallon so it would cost $120,000 to fill it up. According to Boeing’s website a 767 burns 5 gallons per mile, for example a trip from New England, MA to Los Angeles, CA is approximately 3,000 miles which the plane would consume 15,000 gallons. Other high costs include constant maintenance, repairs and storage at an airport.
These costs can add up into thousands of dollars per month. The owner of the plane is ultimately responsible to ensure the plane’s upkeep. A plane’s engine requires constant maintenance to ensure that it operates efficiently all the time The main cost in charting a plane is the monthly lease payment, which for a Boeing 767 is around $600,000. If the patriots lease a plane from the preseason which starts in August to the playoffs which end in February that is 7 months resulting in the total cost of over $4 million. The great thing about leasing is that you do not have to worry about the wear and tear of the aircraft. Also excluded are all of the extra costs incurred by owning. Just like whenone is in need of an automobile you have to make the tough decision of leasevs. buy.
In my opinion, the option depends on how much are the cost to maintainand repair. If a car’s parts were cheap then I would buy but if the car were a”luxury” car then I would rather lease. Another advantage of leasing is that ifsomething is wrong with the vehicle then it can be exchanged for another one.When you buy you are responsible for any issues.
Also, equipment andtransportation vehicles value depreciate at an accelerated rate. So from avalue perspective it would make more financial sense to lease.