2021 NBA OFFSEASON THREAD: Media Day...SHENANIGANS

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osh kosh bosh said:
of course not I read what other experts say on the topic.


here's warren buffet on the subject if you'd prefer a non sneaker forum poster;
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NBA/NFL as a whole grows it’s multi-billion dollar revenue annually, participates in profit sharing, has no real competitors to steal the best upcoming talent, still has potential in several markets around the world, with absolutely no end in sight.

That fact pattern would lend a more favorable multiple & discount rate for any team in any market with any amount of fans….. because those teams are still generating hundreds of millions & will continue to :lol:

Any ownership fandom is a far, far, far distant factor to the flip potential.
 
osh kosh bosh said:
yah it's not black or white, obviously it's not completely divorced from economics.

both play a part, I just think the exclusivity drives more irrational bidding, which pushes the price higher, than people purely bidding off of investment value.
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Yeah

I think a major sports team being a really good investment makes it able for both type of owners to exist

Because even if the fan billionaire bid up the price a little, the strict investor thinks "welp, the return on this investment just gets push out a few more years". And bidding up the price to live out some rich person fantasy doesn't look like bad financial decisions, so the fans bid the price up some more.

-Real talk, if I had 20 billion, after I take care of my family and island. All I want is a few billion to buy an NBA team, and I'm down to donate the rest of the money to charity. Hell AOC can take the 48 billi, just leave me with something to get my Cuban on.

But best believe if my team ever wins the Chip, I'm paying Teanna whatever price she wants to celebrate with me. Adam Silver gonna have to send a hazmat team to pick up the Larry O'Brien Trophy. On some real Golden State ****.

#bleedat
 
ill steelo said:
NBA/NFL as a whole grows it’s multi-billion dollar revenue annually, participates in profit sharing, has no real competitors to steal the best upcoming talent, still has potential in several markets around the world, with absolutely no end in sight.

That fact pattern would lend a more favorable multiple & discount rate for any team in any market with any amount of fans….. because those teams are still generating hundreds of millions & will continue to :lol:

Any ownership fandom is a far, far, far distant factor to the flip potential.
Click to expand...

yah I don't agree,
if that were true, you'd see franchise flipping all the time,
rather people hang onto them until they are in the grave or need to sell because they know their airs aren't into the team,
so they can name their successor (yet another indication this less about profit incentive and more about intangible benefits, naming your successor only matters if view it as more than just raw business)

plus there's opportunity cost
The jazz sold for 1.7 billion, according to Forbes they made 60 mill in profits last year pre pandemic.

1.7 billion is a lot to lay out for a possibility 60 mill in a good year, especially if you borrow and have to service the debt


I can't imagine any billionaire thinks buying a sports team is the best think you could be doing with 1.7 billion in cash.
you can make much smaller bets with much bigger returns as a VC.
 
VARNELL HILL said:
He too....was also someone who probably was not an NBA player :lol:.

The Alphabet boys got an older brother too. I don't know how tall he is but if I were him...I'd get in the gym for a year or two and try to get me a quick 10 day.
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Big Chuck.

1535D953-207D-409F-9D2A-C093AE27F35F.jpeg


NEVA LOST!
 
osh kosh bosh said:
of course not I read what other experts say on the topic.


here's warren buffet on the subject if you'd prefer a non sneaker forum poster;
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Nate Duncan or Danny leroux used the same exact comparison for nba owners. Maybe they were parroting buffet but they used the art/boat comparison

They were making the point that owning a franchise isn’t profitable or something to that effect and that always stuck with me (I didn’t bother looking deeply into it)
 
It's so much more than that man. Sports teams are massive tax loopholes. You get to deduct the cost of the sports team against your annual income for the ensuing years, you get massive lack of liquidity and lack of marketability discounts for holding them as part of your estate and transferring them.

There's WAY more financial gymnastics involved that people just don't talk about. Sports teams are in their own pocket of finance that really isn't tied to reality.

The returns are massive AND you basically get to claim you're losing money the whole time.
 
antidope said:
It's so much more than that man. Sports teams are massive tax loopholes. You get to deduct the cost of the sports team against your annual income for the ensuing years, you get massive lack of liquidity and lack of marketability discounts for holding them as part of your estate and transferring them.

There's WAY more financial gymnastics involved that people just don't talk about. Sports teams are in their own pocket of finance that really isn't tied to reality.

The returns are massive AND you basically get to claim you're losing money the whole time.
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everything is a tax loop hole if you're rich enough. :lol:

If you 1.7 billion invested someplace you can borrow against the asset and never pay taxes.

pro publica did a big piece on this

www.propublica.org

The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

ProPublica has obtained a vast cache of IRS information showing how billionaires like Jeff Bezos, Elon Musk and Warren Buffett pay little in income tax compared to their massive wealth — sometimes, even nothing.
www.propublica.org www.propublica.org

if you rich enough to buy a team, you can avoid taxes just fine. without buying a sports team
 
osh kosh bosh said:
everything is a tax loop hole if you're rich enough. :lol:

If you 1.7 billion invested someplace you can borrow against the asset and never pay taxes.

pro publica did a big piece on this

www.propublica.org

The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

ProPublica has obtained a vast cache of IRS information showing how billionaires like Jeff Bezos, Elon Musk and Warren Buffett pay little in income tax compared to their massive wealth — sometimes, even nothing.
www.propublica.org www.propublica.org

if you rich enough to buy a team, you can avoid taxes just fine. without buying a sports team
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Yes, but few things have an earnings growth rate that can increase in perpetuity. In fact having an infinite time horizon for growth rates breaks the logic of how earnings growth works.

Sports teams are the one thing I have seen people assign an infinite time horizon to and everyone's like "Yup this makes sense".

I don't claim to have all the answers though. I appreciate the discourse.
 
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