NBA Franchise Values

[sheepdogs1]

Is there anything more anti american than a maximum wage? That's what the salary cap is. And even worse the maximum wage calculation in the NBA is based on average revenue. How would you like to be limited to a maximum wage based on the most mediocre competitors results?

But the main point is that anybody who needs to turn an annual profit is not wealthy enough to own a pro sports franchise. The payday is in asset appreciation, the capital gain at the end of the rainbow, not annual income.

Much like purchasing a house. And on a side note, many sports franchise owners use their foray into sports as a tax writeoff.

 

[OULad]

Entrepreneur. Capitalist. Business Owner. Investor. Inventor.

Tony Stark?

 

[BoulderSooner]

Please point me to which current owner had anything to do with creating the NBA. The salary cap removes all risk while exploding the reward exponentially. The players? They took a pay cut. It's all good. These new luxury cap rules are gone soon. The players can opt out in 2017 and that's a guaranteed lock. Great news for Westbrook and Durant who will be hitting free agency around then. Not telling how big their contracts will be.

considering that lots of teams have lost money in the last 10 years ..

as in cash flow negative ..

paper business capital gains .. are not relevant on a year to year operational basis ..

 

[badger]

Salary cap lol. The NBA just added a second Microsoft billionaire owner to their stables that could giggle at the luxury tax penalties from a yacht named Vulcan... or is Ballmer's yacht named "Developers?"