$100 Million in Losses Projected for Next 3 Years

Discussion in 'Portland Trail Blazers' started by Shapecity, Feb 25, 2006.

  1. Shapecity

    Shapecity S2/JBB Teamster Staff Member Administrator

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    <div class="quote_poster">Quote:</div><div class="quote_post">PORTLAND, Ore. (AP) -- Billionaire Paul Allen's spokesman said Thursday the future of the Portland Trail Blazers is in doubt after Allen's investment managers estimated the NBA franchise stands to lose more than $100 million over the next three years.

    Lance Conn, who heads Vulcan Capital, Allen's privately held investment firm, told The Associated Press in an interview that "all options are on the table" because "the economic model is broken."

    Allen, a Microsoft co-founder, has lost more than $12 billion on various investments in the past decade, and his NBA team has been hemorrhaging money for much of that time.

    He had to sell off his interest in the Rose Garden Arena, the home of the Blazers, after the company that ran it, Oregon Arena Corp., declared bankruptcy.

    Conn told AP that Allen has decided it is time to cut his losses with the Trail Blazers -- or find a new way to finance the team.

    "No business person could justify these kinds of losses continuing," Conn said.

    Portland Mayor Tom Potter had no immediate comment but he has scheduled a meeting with Trail Blazers officials for Friday morning, a spokesman said.

    A spokesman for Gov. Ted Kulongoski said the governor met with Vulcan and Blazers representatives two weeks ago, but there was no discussion about a bailout.

    "I don't know what would leave the (Blazers) ownership the impression there is an opportunity for broad-scale public financing," said Pat Egan, Kulongoski's chief of staff. "I don't know how they could draw that conclusion at this point."

    Conn said Vulcan has invested $600 million in the team and the arena since 1988 but has yet to see a profit.

    He also provided an economic impact study done for the team that suggested the Trail Blazers pumped $2 billion in direct spending into the regional economy and $3.8 billion in indirect spending. The study by Horrow Sports Ventures also noted the team generated more than $127 million in taxes and other public revenue since the franchise was formed in 1971.

    Conn also said the Portland arena lease "is recognized as one of the worst in the NBA." </div>

    Source

    Allen has lost over $12 BILLION in the last decade. [​IMG]
     
  2. 02civic

    02civic JBB JustBBall Rookie Team

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    He had too sell 2 of his 11 planes to cover that loss....ZOMG!























    i made that up.....damn rich guys
     
  3. bbwAce

    bbwAce BBW Member

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    Now I've been hearing he's more than willing to sell the team...

    it's amazing the turnaround this team has seen in just 5 years...in 2001 they were challenging the Lakers for Western Conference supremacy, and now they're cellar-dwellars...
     
  4. Benvedis

    Benvedis JBB JustBBall Member

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    So dissapointed I dont even know how to express it. If we keep the team here Ill be ok with selling it, but Ive heard the Blazers might be moving. If that happens it will be like losing a family member.

    The 100$ million is a scare tactic to get Portland to cover some of the costs (not like he needs it). He wont lose 100$ million if he would spend 20$ million next year on a force in the middle (center) and a player who can create his own shot besides Zbo; Adam Morrison would fit perfectly at SF. Id trade Darius and our 1st rounder to move up to get him. Id trade anyone but Martell Webster and Zbo. Id like to keep Telfair two more years to see if he blossoms as the creative passer they said he is.

    Paul Allen should hire Clyde Drexler as a player consultant, so that he can help Nash bring in players with talent AND values; something we have been lacking in most of our players.
     

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