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View Full Version : Do you believe owners should be willing to lose money operationally since….



Kblaze8855
07-05-2023, 07:44 PM
…the massive increase in team value offsets it over time?

That(and questioning if they actually lose money to begin with) is the basis of this long, but fairly good argument between Mike Schur(creator or writer for several huge comedy series) and David Samson the nepo baby stepson and former team president for an MLB owner.




https://youtu.be/PCpWsQiIgK4

It begins at about 5:25 with the question about how it is Mickey Arison loses money every year.


The basic arguments are these for those who don’t feel like watching the almost heated argument:


If expenses are _____ and return for the year is less than that you lost money. The end.


Countered by….


It isn’t losing money when it’s a massively appreciating asset and your accountants can rig the bottom line to look like anything they want.

Follow up arguments were that if you gain value in a stock but aren’t willing or able to realize it by cashing in(selling) you can’t pay the light bill with that appreciation. It isn’t real till you sell it off and Arison will never sell it off because he’s gonna give the team to his son like his dad gave the Heat and Carnival cruise lines to him. He loses money year to year even if he’s still rich from other sources.

The general counter was even if he lost money on the Heat technically to paint it as him personally losing money on the investment is dishonest because we count billionaires worth and they use it indirectly for many things. They can take loans out on their hypothetical value at any time. That the losses are just manufactured just like movie studios are doing to writers now(he heads the writer strike going on).



So.

Where do you stand?

I feel like most, will generally side against a billionaire, because the easiest way to get applause in modern society is to be against rich people. In this particular case, it’s a 100 millionaire arguing against billionaires and of course that point is brought up. He does the same creative accounting, but he somewhat side steps that.

my question to you is this…..

Should pretty much all owners be willing to spend what it takes to win because the so-called losses are bullshit next to the massive appreciating value of their asset?

John8204
07-05-2023, 08:07 PM
I think you have so many subsidies set in place that if you can't keep the lights and heat on than you shouldn't own a team. It's also rich coming from organizations that sign talent to massive contracts and then decide...well not going to pay that but someone else will. I despise baseball teams in Florida those teams should have died and moved to cities and states that would actually show up to watch games.

highwhey
07-05-2023, 08:25 PM
pretty much. i forgot who it was, but some owner said that owning a basketball team isn't meant to be profitable or to be ran with the same intent as operating a traditional business. the majority owners are billionaires and it's not only exclusive because of the money required to buy in, but because there's only 30 teams. none of these guys bat an eye when they buy a 100 million dollar yacht or some stupid art piece that is almost assuredly part of a money laundering scheme. sure as hell never recouping that 100 million back. that basketball team is just another way of flexing, but at least it grows in value.

Real Men Wear Green
07-05-2023, 09:03 PM
Owners don't have a moral obligation to spend to win but everyone should realize that it's all business and treat it had such. Neither players or owners are bad people for trying to make money and we add fans have the right not to support a team if we think they aren't getting to win and the owner is just trying to maximize profit with minimum effort and expense.

Kblaze8855
07-06-2023, 03:46 PM
I wonder how much liquid cash teams like the Lakers have when their owners net worth is nearly all owning the team. The billionaires off the nba can’t have the resources a guy like Ballmer would who bought his team with play money. The spurs owner for years was said to be worth like 20-30 million somehow. Has to be more now but I don’t know that he just has 300 million to spend on a team with the tax like Golden state can.

highwhey
07-06-2023, 03:50 PM
I wonder how much liquid cash teams like the Lakers have when their owners net worth is nearly all owning the team. The billionaires off the nba can’t have the resources a guy like Ballmer would who bought his team with play money. The spurs owner for years was said to be worth like 20-30 million somehow. Has to be more now but I don’t know that he just has 300 million to spend on a team with the tax like Golden state can.

yeah but being an owner of a sports team with a massive net worth like that must make it incredibly easy to get loans or investments. i bet in the snap of a finger he can have a handful of banks willing to open a 100 million dollar credit line for him.

Kblaze8855
07-06-2023, 04:03 PM
I’m sure he can. He can also sell a portion of the team for some cash. But what does selling 10% for 300 million get you if you’re trying to ball like the warriors? They can cost up to 492 million for one season. It will be less than that now without Poole I think but that’s how bad it can get. Are you selling 10% of your team to some douche bag to finance half a season you still probably won’t win?

I might do it to win….again. With a proven winning core. But that’s a lot of ****ing money. If I’m Ballmer or Paul Allen rich OK. If I’m worth 3 billion? And half of that is my team? That role player can walk. **** that.

highwhey
07-06-2023, 04:10 PM
I’m sure he can. He can also sell a portion of the team for some cash. But what does selling 10% for 300 million get you if you’re trying to ball like the warriors? They can cost up to 492 million for one season. It will be less than that now without Poole I think but that’s how bad it can get. Are you selling 10% of your team to some douche bag to finance half a season you still probably won’t win?

I might do it to win….again. With a proven winning core. But that’s a lot of ****ing money. If I’m Ballmer or Paul Allen rich OK. If I’m worth 3 billion? And half of that is my team? That role player can walk. **** that.

ask jeff, i heard our CEO has a high networth and that he established ISH to flex on realGeeM, look at us now, #1

eliteballer
07-06-2023, 11:01 PM
Arison is a Nepo Baby too.

iamgine
07-06-2023, 11:08 PM
A few owners, yes.

Majority of owners? Heck no. That is not a sound business unless it's temporary.

warriorfan
07-06-2023, 11:32 PM
You need to put money into a business to get money out of it.

Chris Cohan pinched pennies as the Warriors were perennially the worst team in the league. He would squeak out a few million here or there as he basically preyed on a loyal fanbase who would support the team no matter how little he spent while not trying to even make them a competitive team.

Cohan ended up selling the Warriors for 450 Million. The new ownership actually tried to win and invested heavily in doing so.


Warriors are worth 8 billion now.


Penny pinching owners **** over everyone, including themselves.

Duffy Pratt
07-09-2023, 01:29 AM
They are still making money.

https://www.visualcapitalist.com/two-decades-of-nba-profit/