blazerkor
Well-Known Member
- Joined
- Sep 15, 2014
- Messages
- 16,536
- Likes
- 17,918
- Points
- 113
Is that last question a joke? Players spend way more money than they make and do it quite frequently. Is it because they use bad judgment? Yeah it is. The last time a team in this league lost money, it was due to bad judgment as well... oh and that loss was easily offset by the increase in team value. Also when people talk about the increase in valuation not beating the stock market they aren't figuring in team profits which due to teams not being publicly traded are not published.Paul Allens ownership of the Blazers earned him probably close to $2 billion in unrealized gains. But it is much less than the equivalent investment in the stock market.
So yeah the owners make money; but owning any $100 million+ business does and should make money.
How many players have ever lost money in a season?
On another note plenty of billion dollar companies have gone under in the last 30 years but no NBA team has. In that time no NBA team has been sold at a loss. In the last 30 years very few teams have taken a shortfall in any fiscal year... they do seem to publicize those. The reason why there is a bidding war every time an NBA franchise goes up for sale is because it is a guaranteed money maker in huge proportions... it's a safe, profitable and fun investment.
I also don't know what it means when people say that the stock market has done better. Boom companies coming and then being acquired by bigger companies really drives that number. Since 2001 the S&P 500 has had a little under a 10% profit year over year... that would put an investment into that at around a 220% return. Since 2001 no NBA team has increased in value by less than %1000. You can't just invest in "the stock market" meaning it's overall value increase. It doesn't work that way... the closest thing you can do to that are funds like the S&P 500. Otherwise you've got to play that stock market and by no means is that a sure fire way to make a profit. I just don't think looking at the overall growth of the worth of all publicly traded companies versus the worth of these teams is in any way an apples to apples comparison.