How are pro teams that lose a fortune worth millions of dollars?

JohnAnthony · 02-15-10, 02:16 AM

Salaries.

Think how many times does a hall need to be full to cover a NBA player's yearly salary. How many shirts need to be sold to cover the coach's salary. Think about the economy and think about all the other expenses.

Think about the economy, mostly.

THE PROFIT · 02-15-10, 02:16 AM

I really don't think they're losing money! I may be wrong, but I know no NFL team is losing money. I don't follow NBA as close and NHL I know nothing about, maybe that's why they're losing money!!!! LoL!

Tell me apro team losing money

iceminers26 · 02-15-10, 02:20 AM

I don't know, its pretty sick to own a franchise in Madden so I'm guessing it would be 10X better in real life. Also the possibility factor exists where some potential owners feel they can take any franchise and with the right added pieces, turn it into a contender.

Yeah I'm sorry T.O. we are going to have to let you go

JohnAnthony · 02-15-10, 02:21 AM

Originally posted by THE PROFIT

I really don't think they're losing money! I may be wrong, but I know no NFL team is losing money. I don't follow NBA as close and NHL I know nothing about, maybe that's why they're losing money!!!! LoL! Tell me apro team losing money

Owner of Memphis Grizzlies is losing a ton on the team.

bettilimbroke999 · 02-15-10, 02:29 AM

Originally posted by THE PROFIT

I really don't think they're losing money! I may be wrong, but I know no NFL team is losing money. I don't follow NBA as close and NHL I know nothing about, maybe that's why they're losing money!!!! LoL!

Tell me apro team losing money

NFL was not mentioned, clearly the NFL is doing incredibly well

12 of the 30 NBA teams this year are losing money, of the 30 NHL teams no telling how many are losing money, half at least Im sure

bettilimbroke999 · 02-15-10, 02:34 AM

Originally posted by JohnAnthony

Owner of Memphis Grizzlies is losing a ton on the team.

Nets are losing even more this year, a buck would get you a ticket to most Nets games on stubhub if it wasnt for their ridiculous "delivery and convenience" charges which are like 15 bucks, oughta be fukin illegal to charge 15 dollars to email a 1 dollar ticket

THE PROFIT · 02-15-10, 02:35 AM

Well, NHL sucks! It's not popular, 'nuff said. I'm surprised it hasn't folded yet. As far as NBA I don't know the economics of it as well I guess, but basketball has overtook baseball as the second most popular sport in america. I mean a winning team is gonna do better than a losing one, but it's all about managing & marketing.

I mean the Saints are the sorriest team in the NFL all time & they've made it & now have a super bowl! Any pro team that consistently makes it to the playoffs should be financially stable in any sport unless the sport itself is going under, like hockey!

ericthegangster · 02-15-10, 02:43 AM

the nba as a whole has been bleeding millions of dollars for a few years because of the players collective bargaining agreement.... which basically says 60% of the revenue goes right to the players salaries. add in the tanking economy and a floundering product, and the NBA is totally screwed. even if david stern is able to negotiate a more realistic agreement with the players union, he still has to put asses in the seats.... which is easier said than done

reno cool · 02-15-10, 03:09 AM

Nobody has tried to answer the question which is: why would anybody want a franchise if it loses $?

I don't know the answer to this but usually it's safe to say that money isn't the only thing motivating these people. Also they may have various leverage and benefits that is worth more than whatever they appear to be losing.

Shortstop · 02-15-10, 03:16 AM

How is the NHL still in business and still in existence? I've always wondered this...

betyuda · 02-15-10, 05:46 AM

I think your getting the wrong picture here as far as how the value of the team always has to do with the concept of if a team is losing money or not. Keep in mind that every team value is based strictly on its true networth, which includes sponsors, salaries, etc. These the key reasons why almost every franchise is owned or bought off by a single wealthy entrepreneur. It is mostly now owned by companies. However, a lot these franchises or the better ones are often offered millions or even billions in loans in hope of bringing in a pure revenue along the road. Of course the value of a team has some things to do with how profitable a team is, but it isn t everything either.

whatsgood5 · 02-15-10, 12:36 PM

I don't really get it either...economics is confusing.

Jaug · 02-15-10, 12:41 PM

They think they can turn a profit again in the future, and the worst thing that can happen is the company going bankcrupt.

You can compare it to warrants that are out of the money, they will always be worth something for the hedge they provide.

ngates815 · 02-15-10, 12:44 PM

Originally posted by Shortstop

How is the NHL still in business and still in existence? I've always wondered this...

Was at the Chicago Blackhawks game Saturday night, and the place was PACKED...was at a Bulls game in January and it didn't seem nearly as packed.

But then again I'm just speaking for Chicago, and the bandwagoners are on the Hawks now.

Patrick McIrish · 02-15-10, 12:50 PM

Big difference between showing a loss on paper and actually losing money.

SamsNCharge99 · 02-15-10, 12:55 PM

no athlete is more a million

bettilimbroke999 · 02-15-10, 12:59 PM

Originally posted by Shortstop

How is the NHL still in business and still in existence? I've always wondered this...

That's what Im sayin, there are NO NHL fans in this country, I mean literally meeting an NHL fan that actually goes to games is like finding a 20 dollar gold coin on the sidewalk and they have 30 FUKIN TEAMS, I MEAN WTF???

Prolly less than half turn a profit and they claim the least popular NHL team the Phoenix Coyotes is worth 142 million, I mean fuk who would pay 142 million for it? What would be the point? I just dont get how they value teams that have no fans

I get why the Yankees, Lakers, Patriots etc are worth something, they sell out every game so sure theres value in that, but the Phoenix Coyotes have more players than fans and are worth 142 mil?

Patrick McIrish · 02-15-10, 01:17 PM

I'm no expert on this but don't forget most franchises own the building they play at. They own the land and often other real estate connected to the organization. They own the rights (or part of it) to all merchandise they sell with their logo, they get a cut of concessions, parking and so on. They all get a cut of TV deals from the networks, this is big money. I heard once what the Yankees made just on their local TV deals and it was astronomical! There is more to the value of a franchise than just the bodies in the seats on any given night.

20Four7 · 02-15-10, 01:23 PM

Originally posted by Shortstop

How is the NHL still in business and still in existence? I've always wondered this...

Because the Canadian teams are propping up the whole league. The Toronto franchise alone makes millions and millions with a team that can't even contend.

H-BOMB · 02-15-10, 01:41 PM

On TV deals alone the Yankees make about 70 million a year. The Yankees are the smartest franchises when it comes to making money and putting a good product together for the fans. Teams like the Marlins get a huge amount of money from revenue sharing, don't even use it and just just put it in their pocket.