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lakersken80
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 Posted: Wed Feb 15, 2017 1:14 pm Post subject: |
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| adkindo wrote: | | lakersken80 wrote: | | venturalakersfan wrote: | | I guess I missed those other corporations that the Buss kids own. |
The Buss family aren't that rich, but if you read about Jerry Buss history, its amazing how he went from graduating with a chemistry degree at USC to going into real estate as a side project and then owning a franchise like the Lakers. |
In that SI article from 1998 I was reading today....in 1998 the Lakers, Sparks and the Forum combined was only worth $300 Million....and 18 years later the Lakers alone are worth $3 Billion....that is an amazing capital asset appreciation. |
I bet a huge portion of that is the rise of TV money. Back then you had Laker games on free TV on KCAL. Now they have pretty much monetized everything of value and put it behind a paywall. |
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jonnybravo
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| Posted: Wed Feb 15, 2017 1:19 pm Post subject: |
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These teams estimates are always wildly inaccurate as a predictor to actual sale value. Always.
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adkindo
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Joined: 16 Jun 2005
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Location: Dirty South
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| Posted: Wed Feb 15, 2017 2:56 pm Post subject: |
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| Mike@LG wrote: | | adkindo wrote: | | Mike@LG wrote: | | adkindo wrote: | | Mike@LG wrote: | | Sad to see a championship team lose money. |
General Manager Lebron......  |
That's not his fault.
A Laker championship with that stardom would profit greatly. $119 million in a losing season isn't all done by team cap. |
no, obviously LA and NY teams will have more revenue than a mid-western team, but I think their tax bill alone was around $40 Million....then the amount over the cap added onto that in combination with a couple players on that roster being overpaid because they are represented by Lebrons people combines for a big chunk of the operating loss. |
The point is, it's a championship team. You'd think there would be a growing fanbase with increased revenue to actually make money.
So no, it's not LeBron's fault. |
I am guessing you have not spent much time in Cleveland, OH? You cant squeeze blood out of a turnip. |
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Mike@LG
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Joined: 10 Apr 2001
Posts: 65135
Location: Orange County, CA
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| Posted: Wed Feb 15, 2017 3:13 pm Post subject: |
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| adkindo wrote: | | Mike@LG wrote: | | adkindo wrote: | | Mike@LG wrote: | | adkindo wrote: | | Mike@LG wrote: | | Sad to see a championship team lose money. |
General Manager Lebron...... |
That's not his fault.
A Laker championship with that stardom would profit greatly. $119 million in a losing season isn't all done by team cap. |
no, obviously LA and NY teams will have more revenue than a mid-western team, but I think their tax bill alone was around $40 Million....then the amount over the cap added onto that in combination with a couple players on that roster being overpaid because they are represented by Lebrons people combines for a big chunk of the operating loss. |
The point is, it's a championship team. You'd think there would be a growing fanbase with increased revenue to actually make money.
So no, it's not LeBron's fault. |
I am guessing you have not spent much time in Cleveland, OH? You cant squeeze blood out of a turnip. |
Spent zero time. A fanbase that's diehard but won't grow for a championship team? I'm not down with.
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adkindo
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Location: Dirty South
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| Posted: Wed Feb 15, 2017 3:16 pm Post subject: |
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| Mike@LG wrote: | | adkindo wrote: | | Mike@LG wrote: | | adkindo wrote: | | Mike@LG wrote: | | adkindo wrote: | | Mike@LG wrote: | | Sad to see a championship team lose money. |
General Manager Lebron...... |
That's not his fault.
A Laker championship with that stardom would profit greatly. $119 million in a losing season isn't all done by team cap. |
no, obviously LA and NY teams will have more revenue than a mid-western team, but I think their tax bill alone was around $40 Million....then the amount over the cap added onto that in combination with a couple players on that roster being overpaid because they are represented by Lebrons people combines for a big chunk of the operating loss. |
The point is, it's a championship team. You'd think there would be a growing fanbase with increased revenue to actually make money.
So no, it's not LeBron's fault. |
I am guessing you have not spent much time in Cleveland, OH? You cant squeeze blood out of a turnip. |
Spent zero time. A fanbase that's diehard but won't grow for a championship team? I'm not down with. |
it is a very economically challenged city...just think about how when Lebron returned, it actually moved the needle on the local economy! Lebron, Tom Brady and the Pope could join LA teams, and its not going to actually register enough to change the economic outlook of metro LA. |
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Runway8
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Joined: 19 Apr 2003
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Location: La Jolla, San Diego
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| Posted: Wed Feb 15, 2017 4:21 pm Post subject: |
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| 32 wrote: | | $3 billion is a conservative estimate. If it went on the market today it could probably fetch 4-5 billion. |
Staggering. I don't even understand how or when Ballmer will break even at one billion, let alone $4 or $5 billion. |
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Bard207
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| Posted: Wed Feb 15, 2017 4:41 pm Post subject: |
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| dcarter4kobe wrote: | | Those numbers are just estimates but that 119M profit stood out to me. And that was before the increased revenue from the new TV deal and without extra income from the playoffs. This is a reason why I say the Lakers should be willing to pay whatever it takes to get the best basketball minds here. |
Do you think there is a slight mental block on going outside the circle of basketball people they have known for years, even decades?
Would bringing in a few outsiders for key FO positions be a tacit admission they weren't able to keep the eternal flame burning that was passed to them from their father? |
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activeverb
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| Posted: Wed Feb 15, 2017 4:50 pm Post subject: |
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| Runway8 wrote: | | 32 wrote: | | $3 billion is a conservative estimate. If it went on the market today it could probably fetch 4-5 billion. |
Staggering. I don't even understand how or when Ballmer will break even at one billion, let alone $4 or $5 billion. |
The price tag of NBA franchises make no sense by any traditional business valuation.
Ballmer paid $2 billion for a company that makes a $10 million a year profit.
You could buy a bunch of McDonald's franchises for $25 million and do as well.
Basically, the franchise values rise because they are toys for very rich people, who overpay because there are a limited number of toys. |
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Omar Little
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| Posted: Wed Feb 15, 2017 5:14 pm Post subject: |
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| activeverb wrote: | | Runway8 wrote: | | 32 wrote: | | $3 billion is a conservative estimate. If it went on the market today it could probably fetch 4-5 billion. |
Staggering. I don't even understand how or when Ballmer will break even at one billion, let alone $4 or $5 billion. |
The price tag of NBA franchises make no sense by any traditional business valuation.
Ballmer paid $2 billion for a company that makes a $10 million a year profit.
You could buy a bunch of McDonald's franchises for $25 million and do as well.
Basically, the franchise values rise because they are toys for very rich people, who overpay because there are a limited number of toys. |
And most of them sell for more than they paid...
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Laker's Fan
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Joined: 27 Jun 2002
Posts: 12897
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| Posted: Wed Feb 15, 2017 5:45 pm Post subject: |
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I believe basketball is well positioned to leverage growth in international popularity in the coming years. That is also aided by the internet giving them direct access to customers through streaming services where they don't have agreements with international networks. I also get the sense that they will benefit from emerging technologies more than other sports, including VR experiences.
On the flip side I don't get the impression there's much growth potential in either the regional or national TV deals. In real dollars I even expect that to decline as networks and the TV industry find better ways to deal with the new landscape of video content consumption.
In other words, $3 billion is WAY low IMO.
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defense
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| Posted: Wed Feb 15, 2017 5:54 pm Post subject: |
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| When do I get my check for watching this stress inducing basketball the last few seasons? |
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AllorNothing
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Joined: 08 Oct 2001
Posts: 18448
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| Posted: Wed Feb 15, 2017 7:10 pm Post subject: |
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| activeverb wrote: | | Runway8 wrote: | | 32 wrote: | | $3 billion is a conservative estimate. If it went on the market today it could probably fetch 4-5 billion. |
Staggering. I don't even understand how or when Ballmer will break even at one billion, let alone $4 or $5 billion. |
The price tag of NBA franchises make no sense by any traditional business valuation.
Ballmer paid $2 billion for a company that makes a $10 million a year profit.
You could buy a bunch of McDonald's franchises for $25 million and do as well.
Basically, the franchise values rise because they are toys for very rich people, who overpay because there are a limited number of toys. |
I would start a new basketball league with Ballmer's money. Pay the kids right out of highschool before the NBA gets them. |
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1hu2ren3dui4
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Posts: 15403
Location: Oak Park
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| Posted: Wed Feb 15, 2017 7:42 pm Post subject: |
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| I'm sure Dan Gilbert has already filed a complaint about how his championship team deserves a larger share of the laker profit margin. |
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lakersken80
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Joined: 12 Aug 2009
Posts: 38834
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| Posted: Wed Feb 15, 2017 7:55 pm Post subject: |
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| activeverb wrote: | | Runway8 wrote: | | 32 wrote: | | $3 billion is a conservative estimate. If it went on the market today it could probably fetch 4-5 billion. |
Staggering. I don't even understand how or when Ballmer will break even at one billion, let alone $4 or $5 billion. |
The price tag of NBA franchises make no sense by any traditional business valuation.
Ballmer paid $2 billion for a company that makes a $10 million a year profit.
You could buy a bunch of McDonald's franchises for $25 million and do as well.
Basically, the franchise values rise because they are toys for very rich people, who overpay because there are a limited number of toys. |
Its a billionaires toy, one that has a very limited supply. I would imagine there is a point where they cannot pass the costs to the customer. It is probably approaching that point with the TV deals not panning out for the buyers (ESPN, TNT),etc where they cannot pass the costs to the customer when they are cutting the cord. |
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mhan00
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| Posted: Wed Feb 15, 2017 8:22 pm Post subject: |
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| AllorNothing wrote: | | activeverb wrote: | | Runway8 wrote: | | 32 wrote: | | $3 billion is a conservative estimate. If it went on the market today it could probably fetch 4-5 billion. |
Staggering. I don't even understand how or when Ballmer will break even at one billion, let alone $4 or $5 billion. |
The price tag of NBA franchises make no sense by any traditional business valuation.
Ballmer paid $2 billion for a company that makes a $10 million a year profit.
You could buy a bunch of McDonald's franchises for $25 million and do as well.
Basically, the franchise values rise because they are toys for very rich people, who overpay because there are a limited number of toys. |
I would start a new basketball league with Ballmer's money. Pay the kids right out of highschool before the NBA gets them. |
Not feasible. Balmer could bankrupt himself trying to create a league to compete and wouldn't make a dent. There's too much brand equity built up with the current league and players. He'd have to shell out insane money, dwarfing NBA contracts to try to attract superstar free agents to his new league since the prestige would be much lower than the NBA and lower level NBA players and Kids out of high school wouldnt be a draw, at all. At best he'd create a league on par or slightly better than the current D League for a (bleep) ton more money and no hopes of recouping it. |
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LandsbergerRules
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Joined: 29 Aug 2004
Posts: 11197
Location: The Other Perspective
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| Posted: Thu Feb 16, 2017 2:17 am Post subject: |
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It's crazy how much sports organizations are worth. I still can't believe the UFC sold for $4 billion.
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Runway8
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Joined: 19 Apr 2003
Posts: 22873
Location: La Jolla, San Diego
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| Posted: Thu Feb 16, 2017 12:38 pm Post subject: |
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| activeverb wrote: | | Runway8 wrote: | | 32 wrote: | | $3 billion is a conservative estimate. If it went on the market today it could probably fetch 4-5 billion. |
Staggering. I don't even understand how or when Ballmer will break even at one billion, let alone $4 or $5 billion. |
The price tag of NBA franchises make no sense by any traditional business valuation.
Ballmer paid $2 billion for a company that makes a $10 million a year profit.
You could buy a bunch of McDonald's franchises for $25 million and do as well.
Basically, the franchise values rise because they are toys for very rich people, who overpay because there are a limited number of toys. |
Any "collectible's" value can go downhill at any moment. Somebody's going to be left holding the check. The entire planet runs on credit. If you think about it, Earth society is one big ponzi scheme. |
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