How many other businesses can you name that are both losing money and at the same time appreciated 7% annually over the past decade?
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Get to know an NBA owner!
- Thread starter r_u_s_t_b_u_c_k_e_t
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How many other businesses can you name that are both losing money and at the same time appreciated 7% annually over the past decade?
Good morning! The owner of the Sacramento Kings is Joe Maloof and other members of the Maloof family. The Maloof family has an estimated net worth of $1 billion. Their fortune was inherited from their father and grandfather. Their father George Maloof was once the owner of the Houston Rockets. The family business includes beer distributorships, trucking, banking, and gaming. The Maloof family also owns Power Balance Pavilion (formerly ARCO Arena), which was completed in 1989 (two years before ESA). Power Balance is a manufacturer of sports wristbands which consist of a plastic band with a hologram sticker attached. The wristbands are purported to "use holographic technology" to affect the wearer's "natural energy field" and have attracted numerous high-profile endorsements, including Shaquille O'Neal, Lamar Odom, Derrick Rose, and Brandon Jennings. These claims have been widely declared as fraudulent.
Earlier this year, the Maloof family attempted to relocate the Kings to Anaheim, because the local government refused to finance a new arena in Sacramento. The family eventually relented and the team will play the 2011-2012 in Sacramento. The campaign for a new arena in Sacramento is ongoing.
Earlier this year, the Maloof family attempted to relocate the Kings to Anaheim, because the local government refused to finance a new arena in Sacramento. The family eventually relented and the team will play the 2011-2012 in Sacramento. The campaign for a new arena in Sacramento is ongoing.
I’m not really pro player or owner. I would like to see a deal that will result in the league not losing money, the players making their fair share of revenues (whatever that is), and a more competitive league where we actually have a chance to compete for a championship every now and then. The latter is especially important to the Jazz considering the young talent we are collecting. If anything, I am pro fan. I would love to see ticket prices cut in half so more people can afford to go to games. If the total ticket revenue is $1 billion this would cost the owners and players, on a 50/50 split of revenues, $250 million each. Simplistic, I know, and it won’t happen, but I can dream.
Rustbucket has gone out of his way to paint the owners in the worst possible light. Sometimes lumping them in with even bigger perceived injustices, like Kroenke with Walmart or Gilbert with the decline of the entire housing market. That’s fine, I think the owners have too much money and I take it all with a grain of salt. It’s been pointed out though that owners are wasting their fortunes on this and that and it made me wonder what the players have done with their wealth and whether you think they have any responsibility to the common good. I’m all about jobs, and for all their faults many of the owners, while creating wealth for themselves, have started and and/or manage business enterprises that create and sustain jobs. I won’t argue that they have made more than their fair share in the process but they do employ people and contribute to the economy. Do you think the players have the same responsibility? I read somewhere that the total salary number is around $1.6 billion per year. If you project that over a six year CBA, that’s somewhere in the neighborhood of $9 billion paid to a relatively small group of people. That’s salary only and does not include revenue from outside sources. Without looking it up, I would guess Dan Gilbert alone employs more people than all of the players combined. This seems to be a similar situation to Wall Street where tremendous wealth has been amassed that doesn’t really make nor do anything that benefits society as a whole (and I don't count 'The NBA Cares'). I’m just wondering if you think we should be occupying the yards of NBA players.
Rustbucket has gone out of his way to paint the owners in the worst possible light. Sometimes lumping them in with even bigger perceived injustices, like Kroenke with Walmart or Gilbert with the decline of the entire housing market. That’s fine, I think the owners have too much money and I take it all with a grain of salt. It’s been pointed out though that owners are wasting their fortunes on this and that and it made me wonder what the players have done with their wealth and whether you think they have any responsibility to the common good. I’m all about jobs, and for all their faults many of the owners, while creating wealth for themselves, have started and and/or manage business enterprises that create and sustain jobs. I won’t argue that they have made more than their fair share in the process but they do employ people and contribute to the economy. Do you think the players have the same responsibility? I read somewhere that the total salary number is around $1.6 billion per year. If you project that over a six year CBA, that’s somewhere in the neighborhood of $9 billion paid to a relatively small group of people. That’s salary only and does not include revenue from outside sources. Without looking it up, I would guess Dan Gilbert alone employs more people than all of the players combined. This seems to be a similar situation to Wall Street where tremendous wealth has been amassed that doesn’t really make nor do anything that benefits society as a whole (and I don't count 'The NBA Cares'). I’m just wondering if you think we should be occupying the yards of NBA players.
Kroenke makes his money building Wal-Mart stores. His wife is an heiress to the Wal-Mart fortune. Gilbert made his money selling mortgages during the housing bubble. That would seem to be a pretty direct involvement in the particular injustices that resulted and continue to result. Your mileage may vary, I suppose.
It may be irrelevant to you, but that doesn't necessarily make it irrelevant. The players want the same thing the owners want. As much money as possible. The owners didn't claim to be broke either, they claim to be losing money. Hard for the players to lose money since they have nothing invested.
So everyone that doesn't own a business has no debt? Whew, that's a load off.
And it's funny how the league is so quick to show off it's collective managerial ineptitude by claiming 20 gajillion dollars lost annually but they won't actually furnish any real evidence of that.
And yes, it is irrelevant. The model has worked for a long time and the owners are locking out the players with this Oliver Twist non-sense. If they're going to paint this picture of "poor us", they should have their lives scrutinized.
Where did I say that? The players do not have money invested in the league and are not losing money from its operation.
I'm not sure how you got to this since it doesn't have much to do with my original post, but whatever. The model has obviously not worked but I’m not really arguing for the owners or saying they shouldn't be open to factual scrutiny. I just don’t blindly take the players side. And thank you for determining for everyone what is, and is not, relevant
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GVC
Well-Known Member
Let us continue our celebration of NBA ownership by introducing James Dolan, the owner of the New York Knicks. Mister Dolan is estimated to have a net worth of $500 million. He amassed his wealth as the chairman of Cablevision, and also happens to be the son of Cablevision founder Charles Dolan. James Dolan has never worked any job outside of his father's company. In 2007, he was named as a defendant in the lawsuit brought by Anucha Browne-Sanders alleging sexual harassment by then Knicks coach Isiah Thomas. She alleged that Mister Dolan fired her out of spite because of the allegations. Browne-Sanders won the suit and Mister Dolan was ordered to pay her $3 million in restitution. Mister Dolan performs as the singer for the blues-rock band "JD and the Straight Shots". He is an avid sailor and owns a yacht.
InGameStrategy
Well-Known Member
Actually a lot of financial and technology firms would probably fit that definition.
But in any case, even though some owners overpaid to buy up the NBA teams, the inflated market value of these firms has little to do with their operating profits. Given that the players don't incur risk in their income under the CBA, it's not unreasonable for the owners to have a higher share revenue than before, given that the risks on both the revenue side and the expense side have gone up.
Joe Bagadonuts
Well-Known Member
I'm not sure why it matters but a whole bunch of dot com companies have fallen into this category, numerous pharmaceutical companies, and tons of other start-ups. The list is really long.
They lost money for an entire decade while their investors made money? I'm not saying it didn't happen but... Really?
trigg3r
Well-Known Member
I don't see how his political party affiliation matters. Personally, if I were in his position I would do the exact same thing he did. You probably would too although you are unwilling to admit it.
Yeah, I don't know how common it is, but I was actually involved with a company like this for 12 years. We developed medical product technologies. In any case, I think it's about return on investment. Whether you make it over time or at the end. I think I remember LHM talking about this on the radio when he was asked about how much the Jazz had appreciated in value since he'd bought the team. He said if they were only interested in return on investment there were better places for their money. For him to say that is significant because I think he paid less than 30 million for the team. Of course that was a few years ago so the team is probably worth more now. I don't know how much the Hawks ownership made because I have no idea how much they made or lost each year while they owned the team or how much they will lose to taxes on the sale of the team. It's possible they will actually realize less than 7% depending upon how the sale was structured.
Isn't the Republican Party adamantly opposed to public bailouts of private business? The Magic and Amway have received hundreds of millions of dollars of bailouts. But, I don't suppose the GOP gives a rat's arse about where the contributions are coming from, right?
I just want the little people out there to become better acquainted with their vaunted heroes, the NBA owners. Long live the owners! Vanquish the tatted players! Long live Commissioner Stern!
Ah, yes...rape.
Let's take a trip down memory lane, and meet George Shinn, previous owner of the New Orleans Hornets. Mister Shinn was the original owner of the Hornets before they moved to New Orleans from Charlotte. The Charlotte Hornets were very successful from the beginning, and lead the league in attendance for six years. In 1999, Shinn was charged with sexual assault of a 30-year old woman. She alleged that he drove her from a drug rehab center, where she was receiving treatment, and assaulted her. Although he was ultimately acquitted of the charges, Shinn, who had been married for 28 years, admitted to the sex claiming it was consensual (just as Kobe Bryant did). He admitted to two other affairs, including one with a Hornets cheerleader. None of these affairs has prevented Mister Shinn from promoting his Christian lifestyle in numerous books (see: "Good Morning, Lord!", available at Amazon).
Mister Shinn eventually moved the Hornets away from Charlotte in 2002, when local taxpayers refused to finance a new arena for the team. The Charlotte Coliseum had been built just 14 years before (it opened in 1988, three years before the ESA), entirely at the expense of the public. The Coliseum was razed in 2007.
I'm sorry, I just can't help myself. I wish the lockout would end. Are you saying the Democratic Party supports public bailouts of private business or that political parties should not accept contributions from recipients of bailout money?
