part two of the nba 2020-21 anything but regular season

very rude of Adam Silver not to consult us

need to practice tough love and tell her to stop being such a casual

i'm more of a players coach but i will try

lol

my son doesn't give a shit about Trae Young anymore :( they grow so fast

damn

all my kids pray to steph curry nightly

welp

BREAKING: A-Rod's ownership group seals deal to purchase Minnesota Timberwolves, @FOS has learned.https://t.co/SN4WNCDQgs

— Front Office Sports (@FOS) May 13, 2021

supposedly arod and the other guy are in this 50/50. i wonder if they are going to do the rotating governor thing like the bucks or what.

how does arod have enough money to buy half an nba team

huh i assumed that it would be mostly the tech guy and a rod would be a lesser owner but more the public face

one would think maybe theyre just saying 50/50 for the pr

he made probably $200M after taxes from baseball so just had to.....almost quadruple that.

loans

i can't find an article on this but i heard brian windhorst talk once on a podcast once about how much an owner (or ownership group) actually has to pay up front to buy a team, and i feel like i remember it being 50% or less than the sale price. i think they can pay the rest off over time using revenue, and there's all sort of bond and bank trickery these guys can use, taking on debt etc

even with all that seems like arod would have to put up all or at least most of his estate, doesnt really make sense

They're letting arod pay with signed photos of him shirtless in Central Park iirc.

does make sense that they would just be saying theyre 50/50 partners tho, except even that doesnt make sense when you consider that arod is the most hated mad in america, but they probably didnt consider that

lol kuzma breaking news

Los Angeles Lakers forward Jared Dudley (@JaredDudley619) may make his return to play this weekend as the team travels to Indy/Nola for their final push of the season league sources tell me.

— kuz (@kylekuzma) May 13, 2021

A contract was soon signed, but Fertitta still needed to raise $2.2 billion—no easy feat, even for one of the world’s thousand richest people. Alexander agreed to finance $275 million of the deal. Fertitta then borrowed $250 million against the value of the Rockets, the maximum allowed by the NBA, and kicked in $300 million of his own money, but that still left him $1.375 billion short.

Rather than selling equity in the company, which would have meant giving up full ownership, Fertitta decided to make up that difference by issuing corporate bonds and bank debt.

fertittas desire to own and then gut the rockets was unmatched

yikes

so fertita basically put in $300m for a team that was sold for $2.2b -- it seems like the wolves are going for 1.5b and there's two owners, i could see a rod putting up only like $100-$125m up front w/ the rest being financed in some crazy rich ppl magician ways

nba has a strict limit on borrowing but sure issue bonds nbd

the thing is that it's basically the best investment you can make, there's no way to not make hundreds of millions of dollars at minimum if you sell

uhh gonna need to see the fine print on that

the dodgers owner who sold to magic's company "bought" the team for $430 million by only putting up $9 million upfront and financing the rest as debt, then proceeded to drive the franchise into bankruptcy, and still cashed out something like $800 million when it sold

https://www.forbes.com/sites/monteburke/2012/03/28/frank-mccourt-gets-bailed-out-with-sale-of-the-dodgers/?sh=379d7333205d

obv in theory you can lose money on a team if you sell it for less than you bought it for but i don't think that ever happens

do you think theres just no limit to the price that an nba team can sell for or

hm I thought the balmer clippers deal artificially inflated all the team values esp now considering the “nobody watches sports now” pandemic thing and the coming tv deal prob won’t be what the last one was

Glen Taylor bought the Wolves for 88 million

i'm sure eventually some upper limit will be reached. but there's only 30 franchises, and a tiny slice of that (like two) are ever for sale at a time, and money globally continues to be consolidated in the hands of insanely wealthy people, who need to find things to do with that money. i think it will basically always be a good time to be selling a sports franchise

the price of sports teams seems to be mostly driven by the fact that super rich guys want to own them, not sure what that means for their long term value tbh, but weve def seen a huge run up in prices over the last ~decade where before that there was a more gradual growth that was more inline with their value as businesses

new owners now are exclusively rich guys where before you had some like the buss family or the steinbrenners where owning the team was a business for them

it certainly looks like a bubble but also bubbles can last a long time and yeah there are prob only a couple few hundred really top tier sports teams worldwide so the supply is def constrained

the guys like MJ and josh harris who got their teams for less than $300 million right before the price of basically the worst franchise in the league (minnesota) shot up to $1.5b made like the best business deals you could possibly make, and there prob won't be profit margins like that to be made anymore, to say nothing of the glen taylors etc. but even if you buy a team for $1.5b and "only" sell it for $2b, that's still a pretty good investment i feel like. plus you got to own a sports team (the wolves)

in 50 or 75 years it might not be so profitable to own a sports team but for the guys buying in now i think there's a long enough window where it's almost impossible to not make a profit in the event you have to sell. maybe fertita will test this theory.

idk man as you said youre already looking at a situation where these teams have quadrupled in price over single digit years, when that happens with anything youre generally past the great investment phase

and while i dont think these guys are really taking teams seriously as businesses if say the nba doesnt get as good of a next tv deal or whatever it could still spook buyers

owning teams could easily also just go out of style, i bet its not really as fun as it seems, once every person with means and desire has gotten a shot at it then what

The current NBA sells the dream that it is a burgeoning global enterprise, poised to harvest big profits from merchandising itself on every continent besides Antarctica. There's just enough potential substance wrapped inside that cloud of hype to lure in new billionaire investors.

if i were an nba owner i would simply move my team from sacramento to seattle then sell it

also if TV contracts go down it means the salary cap will go down and player salaries will go down. plus there's revenue sharing between the franchises to cover losses accrued by the teams in small markets. sports leagues are structured (by owners) to ensure that the owners make money, which isn't to say that all owners do make money, but it's a pretty safe thing to do with hundreds of millions or billions of dollars. there's not a lot of ppl who just lose their shirts on major sports franchises, it's a rigged game

with the Timberwolves, Jon K the Athletic beat reporter was saying on a local radio show that one of the things about team is that -- despite basically all but a handful of years being the worst team in basketball -- the books are actually pretty good when you look into the financials, he said they are better than you would think and better off financially than some teams that are way better franchises

the league feels like it's a good market and if it even got an above average team it would be huge (the garnett era seems to confirm this, that was the biggest ticket in town)

if you look at this article from when brian windhorst was leaked league financial data, the wolves lost money initially but turned a profit after revenue sharing which means they're prob run pretty cleanly

https://www.espn.com/nba/story/_/id/20747413/a-confidential-report-shows-nearly-half-nba-lost-money-last-season-now-what

idk what glen taylor could have been doing all these years if not keeping the books clean

the luxury tax is huge if you stay one of the teams thats receiving it rather than paying it thats good for you

marv albert’s signal has been dropped from the TNT broadcast which prompted reggie miller to announce “we’ve lost hall of fame broadcaster marv albert,” which i found quite startling. and now it feels like being trapped in a jail cell with reggie miller

rough lol

i think trevor ariza just told embiid he wants to fight him in the tunnel