Locke's Tone: Tank on The Horizon?

[Handlogten's Heros]

NBA teams are cash cows. We don't even know the true extent of how much, but you can guarantee it's more than they let on with how much these teams sell for.

Part of it is the huge tax write off they get on the initial purchase... but yes the paper losses the owners throw out are less than genuine. I do think there may be some negative cash flow at times for owners in the tax in markets like ours. Ryan has always been in the tax as an owner so he may have had to float some of the loss.

The minority owners he has are flushed with cash though... should he have real issues those guys likely get a call.

 

[Handlogten's Heros]

We keep acting like this money is coming straight out of Ryan's personal checkbook. It isn't. Many businesses incur expenses like this, penalties or fines or whatever, or just regular operating costs. If we install a ton of racking in a warehouse for a customer for $1.5 million, we might run at a balance sheet loss for 18 months to recoup the investment. If the Jazz incur a 30mill penalty then that just comes off the bottom line, and maybe pushes them closer to running at break even. I seriously doubt that even pushes them into the red. I get they want to run at the highest profit possible, but this has very little to do with Ryan being too poor to pay the penalty and everything to do with them running this as a, well you know, business. Like it is. They just do not want to run the risk of not making a profit. My bet is it would require a hell of a lot more than $30 mill in penalties to push them into a straight up loss anyway.

There is cash flow and there is taxable income. The owners get to amortize the purchase price of the franchise for tax purposes which is completely crazy imo. Real estate investors have a similar business model where the rental net cash flow may be positive... but taxable income from operations is actually a loss. You can't depreciate land because its an appreciating asset... The purchase price for a sports franchise should be in the same bucket but it is not. So he insulates other income with this tax loss.

The cash flow may be close to even... with the tax and salary. Cutting that loss by 30-40M makes it so you have less strain on any line of credit or other stuff.

You may see this in our coaching search... "we want the hot young assistant coach... the next Quin!" but the reality is those guys come with a much lower price tag than an established guy.

 

[YoungJefe]

Locke also suggested Orlando as a trade partner if they want to go all in with Rudy Gobert... lmao

 

[Handlogten's Heros]

Locke also suggested Orlando as a trade partner if they want to go all in with Rudy Gobert... lmao

He's just going through teams alphabetically... so don't read into that.

 

[Handlogten's Heros]

I also don't think a tank is on the horizon.. though Locke mentioning the possibility of moving Donovan or deciding it is time has been a bit of a turn. If we have decided that Rudy can't get us much win now value then maybe that changed our thinking a bit.

I think my current offseason possibilities are:

- 40% we keep Rudy and Donovan... and Conley/Bogey. So a run it back... at least until the trade deadline... partially forced by our players not having great trade value at the moment.

- 23% trade Rudy

- 35% trade Bogey/Mike/Royce/JC for something different in a pretty meh trade but at least you can say you shook things up.

- 2% full scale rebuild... though this may be in part this summer and then completed at the trade deadline. So a Rudy trade that is forward facing this offseason followed by a Donovan and whatever is left trades at the deadline.

 

[YoungJefe]

I also don't think a tank is on the horizon.. though Locke mentioning the possibility of moving Donovan or deciding it is time has been a bit of a turn. If we have decided that Rudy can't get us much win now value then maybe that changed our thinking a bit.

I think my current offseason possibilities are:

- 40% we keep Rudy and Donovan... and Conley/Bogey. So a run it back... at least until the trade deadline... partially forced by our players not having great trade value at the moment.

- 23% trade Rudy

- 35% trade Bogey/Mike/Royce/JC for something different in a pretty meh trade but at least you can say you shook things up.

- 2% full scale rebuild... though this may be in part this summer and then completed at the trade deadline. So a Rudy trade that is forward facing this offseason followed by a Donovan and whatever is left trades at the deadline.

I don't mind keeping Don and Rudy but we have to make major shifts everywhere else.

 

[Bawse Dawg]

God I hope so. Trade everyone, get assets. Put ourselves in the Wembayama(sp?) sweepstakes.

 

[YoungJefe]

God I hope so. Trade everyone, get assets. Put ourselves in the Wembayama(sp?) sweepstakes.

Trade Rudy to tank and draft the young Rudy

 

[Jingled]

Earlier in the offseason, Locke kept mentioning keeping both Don and Rudy and going all in on finding a third guy to pair with them, even if you have to give up another future first round pick to do so. Then if things don't go well this season you blow it all up next offseason and just trade everybody for picks.... with the all-star game being in Utah this year, I'm inclined to think this is the route they will take

 

[SoberasHotRod]

I also don't think a tank is on the horizon.. though Locke mentioning the possibility of moving Donovan or deciding it is time has been a bit of a turn. If we have decided that Rudy can't get us much win now value then maybe that changed our thinking a bit.

I think my current offseason possibilities are:

- 40% we keep Rudy and Donovan... and Conley/Bogey. So a run it back... at least until the trade deadline... partially forced by our players not having great trade value at the moment.

- 23% trade Rudy

- 35% trade Bogey/Mike/Royce/JC for something different in a pretty meh trade but at least you can say you shook things up.

- 2% full scale rebuild... though this may be in part this summer and then completed at the trade deadline. So a Rudy trade that is forward facing this offseason followed by a Donovan and whatever is left trades at the deadline.

Typically the selling team gets more value at the trade deadline vs offseason. I'm wondering if that is offset by keeping good players longer resulting in a better record/worse pick?

 

[YoungJefe]

Typically the selling team gets more value at the trade deadline vs offseason. I'm wondering if that is offset by keeping good players longer resulting in a better record/worse pick?

I don't think so because I can't really remember a good team that was making a playoff push decide to blow it up and sell guys off at the deadline.

 

[YoungJefe]

Earlier in the offseason, Locke kept mentioning keeping both Don and Rudy and going all in on finding a third guy to pair with them, even if you have to give up another future first round pick to do so. Then if things don't go well this season you blow it all up next offseason and just trade everybody for picks.... with the all-star game being in Utah this year, I'm inclined to think this is the route they will take

The only concern I'd have with that is we already lack depth so if we give up multiple players for one guy we'd have basically no depth and would still be in a bad spot financially. The only player that seems obtainable that fits that mold to me is Tobias Harris.