even if they are losing money year-to-year (which is debatable), the values of the teams have skyrocketed. Miller bought the Jazz for $25 million. Forbes now values the team at $350 million. you call that losing money?
Lockout!!!
- Thread starter colton
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even if they are losing money year-to-year (which is debatable), the values of the teams have skyrocketed. Miller bought the Jazz for $25 million. Forbes now values the team at $350 million. you call that losing money?
the Warriors were sold last year for $450 million. the Warriors! that was $315 million more than Cohan paid for the team in 1995. "losing money", eh?
Larry Ellison, the CEO of Oracle, reportedly made a bid higher than $450 million that was rejected for whatever reason. do you find it odd that these genius billionaires are fighting with each other for the chance to lose money?
//r00t 4 Jazz
Well-Known Member
Hey GVC I'm not trying to argue with you and just asking a question here and you may have answered it already with your lil' spat with Solmo and I missed it.... but. Did I read you correctly when you said the NBA owners had one of the best CBA's in pro sports, if I'm not mistaken it is one of the worst in that 57% of all revenue goes to the players, that is all no real issues just that questions.
Hey Rusty I'm definitely not a financial wiz or even of average understanding but I believe a company (in this case teams) can increase in worth but still be losing money (by playing players more then they bring in).
Hey Rusty I'm definitely not a financial wiz or even of average understanding but I believe a company (in this case teams) can increase in worth but still be losing money (by playing players more then they bring in).
sure. see my first post. the year-to-year finances of these franchises are just one piece in the puzzle of whether they are "losing money" or not.
MattMan
Active Member
Wait.....are you actually comparing the cost of something back in 1979 to now? Ever heard of inflation? The average cost of a car in 1979 was $4000, compared to $29,000 today. I know the percentages are in the favor of the Jazz, but player salaries and overhead are way up since '79 even when factoring in inflation.
When 24+ teams are losing money, it doesn't matter how much they sell for, cause you're not buying or selling them to make or lose money.
Since when do people buy sports teams with the idea of making money (besides Doinald Sterling)?
okay, Miller bought the Jazz in 1986 for $47 million (in 2011 dollars, per some online inflation calculator i found). the team is now valued at $350 million. that is still a 700% return on his initial investment. the losses due to "overhead" would really have to be something to cancel out that much gain.
Cohan made $315 million when he sold the Warriors. are you sure that the investors currently lining up to buy NBA franchises aren't doing so to make tons of money when they eventually sell?
and, if so many smart, rich people are trying to buy these teams, doesn't it make you wonder if the numbers coming from Stern ("24+ teams are losing money") are really accurate?
Cohan turned $100-something million into $450 million in just 15 years while owning the Warriors.
I would gladly lose money (assuming I am a billionaire with a healthy income of money elsewhere, which I assume most owners are) too own a team. I assume at least a handful of owners are huge sports fans (Mark Cuban a good example) probably feel the same way.
Consider inflation.
okay. he turned a $200 million investment into a $450 million return in just 15 years.
GVC
Well-Known Member
We're both right here. Yes, 57% is high, but the 45% (or thereabouts) the owners are asking for is ridiculously low. If the owners were willing to bring better revenue sharing models to the table for these negotiations, I imagine it would all be settled in short order. Unfortunately, they're asking for the players to give up more money so that the Lakers, Knicks, etc. will be swimming in dough, while the teams with the worst management in the biggest backwaters will still be in the black every year. The owners are asking for everything.
Now, that's their right, and I have no problem with it, but if I have to pin blame on one side or the other if there's no season, I'll pick the owners (as of right now, despite not understanding why the players are so wed to the current soft cap the NBA has...have they given up on revenue sharing in favor of this seemingly irrelevant detail?).