Forbes: Nets Now Worth Less than When Ratner Bought Them

[NJNetz]

Forbes Magazine’s annual summary of the state of the NBA’s finances is out. While there is some good news–the Nets have cut their operating losses, the value of the franchise is now $295 million, down 13% from 2007 and less than the $300 million Bruce Ratner paid for them in 2004. Forbes also reports that the Nets have the highest debt-to-value ratio of any NBA team, with the team’s debt equal to 71% of its value.

Kurt Badenhausen, Michael K. Ozanian and Christina Settimi - Forbes
Kurt Badenhausen and Michael K. Ozanian - Forbes

 

[Mr. J]

Kurt Badenhausen, Michael K. Ozanian and Christina Settimi - Forbes
Kurt Badenhausen and Michael K. Ozanian - Forbes

It's crazy how the Thunder are ranked higher than the Nets.

 

[Netted]

It's crazy how the Thunder are ranked higher than the Nets.

Don't forget the Nets still have to give the old ABA teams a sizeable check every year. That impacts the value.

 

[adisodes]

Don't forget the Nets still have to give the old ABA teams a sizeable check every year. That impacts the value.

Really? Why's that?

 

[ffz]

Really? Why's that?

just my guess, but might have to do with them getting picked to merge into the nba and the other teams getting shafted and disbanding.

 

[Netted]

just my guess, but might have to do with them getting picked to merge into the nba and the other teams getting shafted and disbanding.

Correct. ABA-NBA merger

In addition, the four former ABA teams were injured in perpetuity because each had to pay one seventh of its annual television revenues to the owners of the defunct Spirits of St. Louis, forever.

 

[rory]

That deal the owners of the Spirits of St. Louis got has to be one of the greatest legal business deals in history.

 

[Денг Гордон]

It also is keeping an NBA team from coming to St. Louis, where there really should be a team.

 

[Mr. J]

The Nets are slightly more valuable than the Grizzlies.

 

[nets1]

this atlanatic yard thing and all its law suits are probably being counted as contigent liabilites which will bring down the overall value of the franchise. I guess Ratner underestimated the power of lawyers who live in Brooklyn. He may lose this fight yet, which btw will be a gain for new jersey.

A gain cause the team stays in jersey, but a loss for the team cause they will never have a decent home court advantage....

 

[Mr. J]

They will once LeBron comes.

 

[Netted]

The Nets are slightly more valuable than the Grizzlies.

Considering the Grizzlies play in a brand new arena in a downtown setting and the Nets play in a totally shitty arena in the middle of some wetlands that isn't too bad.

 

[Petey]

just my guess, but might have to do with them getting picked to merge into the nba and the other teams getting shafted and disbanding.

Correct. ABA-NBA merger

In addition, the four former ABA teams were injured in perpetuity because each had to pay one seventh of its annual television revenues to the owners of the defunct Spirits of St. Louis, forever.

The Nets also play the Knicks a yearly amount for being in 'their' market.

-Petey

 

[Petey]

That deal the owners of the Spirits of St. Louis got has to be one of the greatest legal business deals in history.

It's great as there is no overhead on that yearly payout.

-Petey

 

[drexlersdad]

It's great as there is no overhead on that yearly payout.

-Petey

that really is amazing, hundreds of millions of dollars, wow their lawyer from that time gets 10% to this day, what a racket!

btw, blazers made the largest jump, up 21%!