while reading the following out takes of a recent article from the athletic, try keep in mind the following. it seems incredible the money.
Paul Allen
purchased the Trail
Blazers in 1988 for $70 million. His sister, Jody, assumed control of the team after his passing in 2018. There's been some speculation about what Jody might try to sell the team, but based on how well the team is increasing in value, why would she?Feb 11, 2020
https://theathletic.com/2183445/202...-boost-value-of-nba-teams/?source=weeklyemail
The Jazz, along with an arena and a couple of minor-league teams, were sold for $1.6 billion in a deal expected to be approved by the league’s other owners with little debate. Those who specialize in team valuations and sales say the Jazz price falls in line with expectations and doesn’t reflect any pandemic discount.
“The price seems fair and doesn’t reflect a COVID-19 discount. I think this is a positive for smaller market teams, and quite the accomplishment for the NBA. Ten years ago a lot of teams were sold for around $300 million. Now, that price has increased five-fold, despite the ups and downs of the U.S. economy,” said Rapkoch who is president of Addison, Texas-based Sports Value Consulting, LLC. “This is why we have been saying that sports is great for portfolio diversification.”
The last time the Jazz changed hands was when Larry Miller, a Salt Lake City car dealership tycoon, bought the team in two transactions for a total of $26 million in 1985-86. He died in 2009. The Miller family is keeping a reported 20 percent stake in the team in the sale to Ryan Smith, a 42-year-old Utah native and self-professed lifelong Jazz diehard who became a billionaire as co-founder of online software company Qualtrics that he and others sold two years ago for $8 billion.
What Miller paid for the Jazz to what his family sold them for 34 years later represents more than a 6,000-percent rate of increase on the investment – the sort of financial benefit realized mostly by owners who acquired their teams, large or small, prior to the massive influx of sports TV money that began in earnest in the 1990s.
Miller’s deal for the Jazz also sets a new baseline for NBA team sales.
“It’s established that no team in the NBA is going to sell for less than that,” Greenberg said.
