Get to know an NBA owner!

[r_u_s_t_b_u_c_k_e_t]

I'm not sure why it matters but a whole bunch of dot com companies have fallen into this category, numerous pharmaceutical companies, and tons of other start-ups. The list is really long.

They lost money for an entire decade while their investors made money? I'm not saying it didn't happen but... Really?

 

[trigg3r]

And... we're back! The next owner we will get to know is Rich DeVos of the Orlando Magic. Mister DeVos is a cofounder of Amway, the largest "network marketing" company in the world. His position at the top of the Amway pyramid has "earned" him an estimated $4.2 billion fortune.

Amway and the Orlando Magic have been the recipients of hundreds of millions of dollars in tax breaks from both federal and local governments. The Orlando Magic debuted in 1989 at the Orlando Arena, which was financed entirely by local government at a cost of $195 million (in 2011 dollars). Within just a few years, Mister DeVos deemed the building obsolete and began campaigning for a new arena. Eventually he threatened to move the team to another city. In 2006, local government approved the building of a new arena for the team. The brand new "Amway Center" was completed in 2010 at a cost of $480 million, of which $50 million was contributed by Mister DeVos. The remaining cost of the building was financed by the public. The 22-year old, since-renamed "Amway Arena" is slated for demolition later this year.

Mister DeVos and his family are avid Republicans and have contributed millions of dollars to the party over the years.

I don't see how his political party affiliation matters. Personally, if I were in his position I would do the exact same thing he did. You probably would too although you are unwilling to admit it.

 

[My2Cents]

They lost money for an entire decade while their investors made money? I'm not saying it didn't happen but... Really?

Yeah, I don't know how common it is, but I was actually involved with a company like this for 12 years. We developed medical product technologies. In any case, I think it's about return on investment. Whether you make it over time or at the end. I think I remember LHM talking about this on the radio when he was asked about how much the Jazz had appreciated in value since he'd bought the team. He said if they were only interested in return on investment there were better places for their money. For him to say that is significant because I think he paid less than 30 million for the team. Of course that was a few years ago so the team is probably worth more now. I don't know how much the Hawks ownership made because I have no idea how much they made or lost each year while they owned the team or how much they will lose to taxes on the sale of the team. It's possible they will actually realize less than 7% depending upon how the sale was structured.

 

[r_u_s_t_b_u_c_k_e_t]

I don't see how his political party affiliation matters.

Isn't the Republican Party adamantly opposed to public bailouts of private business? The Magic and Amway have received hundreds of millions of dollars of bailouts. But, I don't suppose the GOP gives a rat's arse about where the contributions are coming from, right?

Personally, if I were in his position I would do the exact same thing he did. You probably would too although you are unwilling to admit it.

I just want the little people out there to become better acquainted with their vaunted heroes, the NBA owners. Long live the owners! Vanquish the tatted players! Long live Commissioner Stern!

 

[Gameface]

Saying that siding with the owners on this particular issue is stupid because the owners are greedy ******** is like saying a slut can't get raped and I'd be a fool to believe her.

 

[r_u_s_t_b_u_c_k_e_t]

... raped...

Ah, yes...rape.

Let's take a trip down memory lane, and meet George Shinn, previous owner of the New Orleans Hornets. Mister Shinn was the original owner of the Hornets before they moved to New Orleans from Charlotte. The Charlotte Hornets were very successful from the beginning, and lead the league in attendance for six years. In 1999, Shinn was charged with sexual assault of a 30-year old woman. She alleged that he drove her from a drug rehab center, where she was receiving treatment, and assaulted her. Although he was ultimately acquitted of the charges, Shinn, who had been married for 28 years, admitted to the sex claiming it was consensual (just as Kobe Bryant did). He admitted to two other affairs, including one with a Hornets cheerleader. None of these affairs has prevented Mister Shinn from promoting his Christian lifestyle in numerous books (see: "Good Morning, Lord!", available at Amazon).

Mister Shinn eventually moved the Hornets away from Charlotte in 2002, when local taxpayers refused to finance a new arena for the team. The Charlotte Coliseum had been built just 14 years before (it opened in 1988, three years before the ESA), entirely at the expense of the public. The Coliseum was razed in 2007.

 

[My2Cents]

Isn't the Republican Party adamantly opposed to public bailouts of private business? The Magic and Amway have received hundreds of millions of dollars of bailouts. But, I don't suppose the GOP gives a rat's arse about where the contributions are coming from, right?

I'm sorry, I just can't help myself. I wish the lockout would end. Are you saying the Democratic Party supports public bailouts of private business or that political parties should not accept contributions from recipients of bailout money?

 

[green]

He is basically trying to prove that the owners are bad because they make money.

 

[r_u_s_t_b_u_c_k_e_t]

I'm sorry, I just can't help myself. I wish the lockout would end. Are you saying the Democratic Party supports public bailouts of private business or that political parties should not accept contributions from recipients of bailout money?

I don't remember why I included that. It was probably just a knee-jerk dig at the GOP and their hypocrisy concerning bailouts.

 

[Joe Bagadonuts]

They lost money for an entire decade while their investors made money? I'm not saying it didn't happen but... Really?

Examples are easy to find. Amazon was founded in 1994 and didn't have their first profitable quarter until 2002 (one penny per share). After that they lost money in subsequent quarters. They weren't even close to profitable in their first decade, yet investors made fortunes.

 

[Joe Bagadonuts]

Isn't the Republican Party adamantly opposed to public bailouts of private business? The Magic and Amway have received hundreds of millions of dollars of bailouts. But, I don't suppose the GOP gives a rat's arse about where the contributions are coming from, right?

Amway and the Orlando Magic received government bailout money? Do you have documentation of this?

 

[r_u_s_t_b_u_c_k_e_t]

Examples are easy to find. Amazon was founded in 1994 and didn't have their first profitable quarter until 2002 (one penny per share). After that they lost money in subsequent quarters. They weren't even close to profitable in their first decade, yet investors made fortunes.

I'm no expert. I don't necessarily doubt your claim that examples are easy to find. However, Amazon's stock price history looks pretty flat to me, outside of the dot-com bubble and the period since 2007 when the company was finally making money.