green
Well-Known Member
The devil is in the details. If he just wants to turn a profit, then yeah, moving might now make a lot of sense. The Clippers and Knicks turned a profit for a long, long time. He can stay in Utah, never go near the tax line and turn a profit. The Millers made a lot of money having the team good enough to advance one round in the playoffs but never paying the tax.I don’t think moving the team makes him all that much. I think there is a relocation fee... so I think it’d be get financing, cut costs, sell the team. Whoever buys it from him would be the ones likely to
move it.
If he wants to win a title in today's NBA, he has to pay the tax. So, how do you do that? You have to cash flow somewhere else (or the Jazz have to cash flow and he has to save it, but business guys don't do that. If they profit 100 million year one and profit 50 million year two, they will go on and on about how they "lost" 50 million year two, when in reality they still took a profit of 50 million). So, he has to have somewhere else to move the cash from to the Jazz. And he doesn't have that.
The easiest way to solve that problem is to move. Sure, the fee to move is big, but if he still cash flows at the end of the year, then it doesn't matter. For example, if he hits the tax and loses 10 million in Utah but if he was in Seattle he could hit the tax, pay the fee AND cash flow a positive 10 million...then it's a no brainer.
I do agree that if he sold the team, the Jazz would be as good as gone.
Here is a date to keep in mind: The end of the 2022-2023 season. That will be the time when Mitchell gets all his power. He can force a trade and the Jaza would have no recourse to stop him from moving. It is also right before the tv deal expires in 2025, so if the NBA was to expand, they would start the paperwork in the this offseason. If the Jazz are going to lose Mitchell due to off the court stuff, and if Seattle is trying to get an expansion team...you could see movement then. That will be when Jazz fans need to really worry about everything falling apart for them.
The point is, it's a tricky, tough situation Smith is in. And he has some MAJOR hurdles to overcome as a new owner. I don't envy him at all.