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Movics wrote:I thought it was a good rundown of why the new ownership is more than willing to pay luxury tax

Read on Twitter

?s=46&t=472nCH-C5F8Jko3_xRlgtA

winforlose wrote:

Movics wrote:I thought it was a good rundown of why the new ownership is more than willing to pay luxury tax

Read on Twitter

?s=46&t=472nCH-C5F8Jko3_xRlgtA

How do I see more than the picture? I clicked the link, went to Twitter, and nothing happened. There isn’t even a video, it is a picture.

Movics wrote:

winforlose wrote:

Movics wrote:I thought it was a good rundown of why the new ownership is more than willing to pay luxury tax

Read on Twitter

?s=46&t=472nCH-C5F8Jko3_xRlgtA

How do I see more than the picture? I clicked the link, went to Twitter, and nothing happened. There isn’t even a video, it is a picture.

Scroll down. It is a “thread” which means there are more tweets from the same person

winforlose wrote:

Movics wrote:

winforlose wrote:
How do I see more than the picture? I clicked the link, went to Twitter, and nothing happened. There isn’t even a video, it is a picture.

Scroll down. It is a “thread” which means there are more tweets from the same person

I don’t think it works if you don’t have an account.

Movics wrote:

winforlose wrote:

Movics wrote:Scroll down. It is a “thread” which means there are more tweets from the same person

I don’t think it works if you don’t have an account.

Oh, unfortunately that’s totally possible… here’s the text

Spoiler:

[WolvesClips] Why Minnesota Timberwolves Fans Should Expect Wolves Ownership to Pay $100M+ in Luxury Tax in 2024-25 and 2025-26:

In 2021, Marc Lore and Alex Rodriguez agreed to purchase 80% of the Minnesota Timberwolves at a $1.5B franchise valuation, paid in 3 installments.

In 2023, Lore + A-Rod brought on additional partner(s) at a $2.1B franchise valuation. [Here's [the link](https://www.sportico.com/business/team-sales/2023/eric-schmidt-timberwolves-arod-lore-1234761220/#) in this tweet]

Recently, the Charlotte Hornets were sold at a valuation of $3B, while the Phoenix Suns were sold at a valuation of $4B.

As a result of those sales, Lore + A-Rod have been able to sell equity at a much higher valuation ($2.1B) than they bought-in at ($1.5B).

If Lore + A-Rod decided to sell their 80% share in the Wolves in April after the sale is finalized, at an under-market valuation of $2.1B, the pair would make over $400M in cash.

Lore + A-Rod have already built a ton of wealth by owning the Wolves. They have invested heavily in staff/infrastructure, and those investments have paid off handsomely.

If the Wolves continue to be successful on the court, that franchise valuation will likely continue to rise.

How much do the Wolves have to pay in luxury tax penalties to retain their full 9-man rotation?

Assuming the Wolves retain Morris + Anderson for ~$5M/year each, their expected luxury tax payment in 2024-25 is ~$108M, with a similar payment due in 2025-26.

Paying the luxury tax is an investment like any other; by absorbing short-term losses, Lore + A-Rod can benefit from massive long-term gains, such as:

- ⬆️ public support for a new stadium
- ⬆️ national TV brand exposure
- ⬆️ viewership
- ⬆️ advertising/merchandise/ticket sales

The Golden State Warriors are the model for this philosophy:

Step 1: buy a historically inept NBA franchise ✅

Step 2: invest heavily in the on-court + off-court infrastructure, leading to team success

Step 3: capitalize on team success by reinventing brand + building a new arena to generate long-term revenue

Lore + A-Rod are well-suited to follow this model with the Wolves, assuming they are willing to invest heavily in the short-term.

2 additional factors to consider: The NBA’s new TV deal + Expansion Fees

The NBA’s TV deal is set to expire in 2025, so owners and players can expect a massive financial windfall over the next several years.

This increase in revenue will be reflected in an increased salary cap.

After the new NBA TV deal is completed, the NBA is planning to add 2 additional expansion teams.

Assuming a conservative total sale price of $3B per expansion franchise, all NBA ownership groups will receive a check for $100M per franchise - a total of at least $200M in cash.

*Bottom Line:*

**If Lore + A-Rod play their cards right, they have an opportunity to make BILLIONS in equity + long-term revenue + community goodwill, without really losing all that much cash in the short-term due to expansion rights fees and increased short-term revenue.**

winforlose wrote:

Movics wrote:

winforlose wrote:
I don’t think it works if you don’t have an account.

Oh, unfortunately that’s totally possible… here’s the text

Spoiler:

[WolvesClips] Why Minnesota Timberwolves Fans Should Expect Wolves Ownership to Pay $100M+ in Luxury Tax in 2024-25 and 2025-26:

In 2021, Marc Lore and Alex Rodriguez agreed to purchase 80% of the Minnesota Timberwolves at a $1.5B franchise valuation, paid in 3 installments.

In 2023, Lore + A-Rod brought on additional partner(s) at a $2.1B franchise valuation. [Here's [the link](https://www.sportico.com/business/team-sales/2023/eric-schmidt-timberwolves-arod-lore-1234761220/#) in this tweet]

Recently, the Charlotte Hornets were sold at a valuation of $3B, while the Phoenix Suns were sold at a valuation of $4B.

As a result of those sales, Lore + A-Rod have been able to sell equity at a much higher valuation ($2.1B) than they bought-in at ($1.5B).

If Lore + A-Rod decided to sell their 80% share in the Wolves in April after the sale is finalized, at an under-market valuation of $2.1B, the pair would make over $400M in cash.

Lore + A-Rod have already built a ton of wealth by owning the Wolves. They have invested heavily in staff/infrastructure, and those investments have paid off handsomely.

If the Wolves continue to be successful on the court, that franchise valuation will likely continue to rise.

How much do the Wolves have to pay in luxury tax penalties to retain their full 9-man rotation?

Assuming the Wolves retain Morris + Anderson for ~$5M/year each, their expected luxury tax payment in 2024-25 is ~$108M, with a similar payment due in 2025-26.

Paying the luxury tax is an investment like any other; by absorbing short-term losses, Lore + A-Rod can benefit from massive long-term gains, such as:

- ⬆️ public support for a new stadium
- ⬆️ national TV brand exposure
- ⬆️ viewership
- ⬆️ advertising/merchandise/ticket sales

The Golden State Warriors are the model for this philosophy:

Step 1: buy a historically inept NBA franchise ✅

Step 2: invest heavily in the on-court + off-court infrastructure, leading to team success

Step 3: capitalize on team success by reinventing brand + building a new arena to generate long-term revenue

Lore + A-Rod are well-suited to follow this model with the Wolves, assuming they are willing to invest heavily in the short-term.

2 additional factors to consider: The NBA’s new TV deal + Expansion Fees

The NBA’s TV deal is set to expire in 2025, so owners and players can expect a massive financial windfall over the next several years.

This increase in revenue will be reflected in an increased salary cap.

After the new NBA TV deal is completed, the NBA is planning to add 2 additional expansion teams.

Assuming a conservative total sale price of $3B per expansion franchise, all NBA ownership groups will receive a check for $100M per franchise - a total of at least $200M in cash.

*Bottom Line:*

**If Lore + A-Rod play their cards right, they have an opportunity to make BILLIONS in equity + long-term revenue + community goodwill, without really losing all that much cash in the short-term due to expansion rights fees and increased short-term revenue.**

Good find. Mirrors a lot of what I have been saying plus what other people have been saying about the arena. The only thing they should talk about but didn’t is that they have a third investor (I forget his name,) who is connected to Google (I forget the specifics,) and he has deep pockets. This ownership group went into this with their eyes wide open, and I cannot imagine they did it just to bail out when things are starting to get very profitable.

TimberKat wrote:

winforlose wrote:

Movics wrote:Oh, unfortunately that’s totally possible… here’s the text

Spoiler:

[WolvesClips] Why Minnesota Timberwolves Fans Should Expect Wolves Ownership to Pay $100M+ in Luxury Tax in 2024-25 and 2025-26:

In 2021, Marc Lore and Alex Rodriguez agreed to purchase 80% of the Minnesota Timberwolves at a $1.5B franchise valuation, paid in 3 installments.

In 2023, Lore + A-Rod brought on additional partner(s) at a $2.1B franchise valuation. [Here's [the link](https://www.sportico.com/business/team-sales/2023/eric-schmidt-timberwolves-arod-lore-1234761220/#) in this tweet]

Recently, the Charlotte Hornets were sold at a valuation of $3B, while the Phoenix Suns were sold at a valuation of $4B.

As a result of those sales, Lore + A-Rod have been able to sell equity at a much higher valuation ($2.1B) than they bought-in at ($1.5B).

If Lore + A-Rod decided to sell their 80% share in the Wolves in April after the sale is finalized, at an under-market valuation of $2.1B, the pair would make over $400M in cash.

Lore + A-Rod have already built a ton of wealth by owning the Wolves. They have invested heavily in staff/infrastructure, and those investments have paid off handsomely.

If the Wolves continue to be successful on the court, that franchise valuation will likely continue to rise.

How much do the Wolves have to pay in luxury tax penalties to retain their full 9-man rotation?

Assuming the Wolves retain Morris + Anderson for ~$5M/year each, their expected luxury tax payment in 2024-25 is ~$108M, with a similar payment due in 2025-26.

Paying the luxury tax is an investment like any other; by absorbing short-term losses, Lore + A-Rod can benefit from massive long-term gains, such as:

- ⬆️ public support for a new stadium
- ⬆️ national TV brand exposure
- ⬆️ viewership
- ⬆️ advertising/merchandise/ticket sales

The Golden State Warriors are the model for this philosophy:

Step 1: buy a historically inept NBA franchise ✅

Step 2: invest heavily in the on-court + off-court infrastructure, leading to team success

Step 3: capitalize on team success by reinventing brand + building a new arena to generate long-term revenue

Lore + A-Rod are well-suited to follow this model with the Wolves, assuming they are willing to invest heavily in the short-term.

2 additional factors to consider: The NBA’s new TV deal + Expansion Fees

The NBA’s TV deal is set to expire in 2025, so owners and players can expect a massive financial windfall over the next several years.

This increase in revenue will be reflected in an increased salary cap.

After the new NBA TV deal is completed, the NBA is planning to add 2 additional expansion teams.

Assuming a conservative total sale price of $3B per expansion franchise, all NBA ownership groups will receive a check for $100M per franchise - a total of at least $200M in cash.

*Bottom Line:*

**If Lore + A-Rod play their cards right, they have an opportunity to make BILLIONS in equity + long-term revenue + community goodwill, without really losing all that much cash in the short-term due to expansion rights fees and increased short-term revenue.**

Good find. Mirrors a lot of what I have been saying plus what other people have been saying about the arena. The only thing they should talk about but didn’t is that they have a third investor (I forget his name,) who is connected to Google (I forget the specifics,) and he has deep pockets. This ownership group went into this with their eyes wide open, and I cannot imagine they did it just to bail out when things are starting to get very profitable.

Reasonable assumption and I don't think it's 100m in Taxes but more like 30m. Maybe they also consider the fact Wolves won't receive tax money so the difference is 100m

minimus wrote:Guys, what are your impression about TJ Warren? I know he is not only a scorer, but he is also

1) a battle tested NBA veteran. I mean he doesn't lack confidence or familiarity with NBA game.

2) a big wing who is agile enough to beat lazy closeouts and help on boards

I hope we get a younger version of TJ in draft, but I would be happy if he resigns for vetmin and stays healthy

shrink wrote:I heard an interesting bit on a podcast today that I hadn’t considered, and I thought people might enjoy:

The podcast pointed out that when teams create their draft strategy, they may decide whether they have minutes for their picks. Teams that have vets to fill their roster minutes might aim for projects who have a higher upside but a greater chance to fail. The podcasters mentioned 2023 MIN drafting Leonard Miller. Other teams may be expensive and win now, and may aim their pick toward a more developed, but lower ceiling player who might have spent a couple years in college. I think that could be 2024 MIN, and may be why they held onto Wendell Moore Jr, thinking “he’s cheap too, and he won’t mess up the team because he’ll know where to be on the floor.” He still needs to show me something though.

winforlose wrote:

shrink wrote:I heard an interesting bit on a podcast today that I hadn’t considered, and I thought people might enjoy:

The podcast pointed out that when teams create their draft strategy, they may decide whether they have minutes for their picks. Teams that have vets to fill their roster minutes might aim for projects who have a higher upside but a greater chance to fail. The podcasters mentioned 2023 MIN drafting Leonard Miller. Other teams may be expensive and win now, and may aim their pick toward a more developed, but lower ceiling player who might have spent a couple years in college. I think that could be 2024 MIN, and may be why they held onto Wendell Moore Jr, thinking “he’s cheap too, and he won’t mess up the team because he’ll know where to be on the floor.” He still needs to show me something though.

I was listening to a Kyle Theige pod (not sure if he said it on Dane Moore or Flagrant howls,) but Kyle pointed out that NAW is 25. We have a 22 year old Ant, 23 year old Jaden, 24 year old Naz, and 25 year old NAW. In light of that and our standings it is hard to argue that we are not developing our young players. At the same time, Miller and Minott have been neglected in a way I don’t personally like. I could see Minott and Miller being very helpful now (with Rudy banged up, Kyle banged up, Naz banged up, and Karl out,) if we had found minutes for them against sub .500 teams. I don’t mean garbage time minutes either, but actual rotation minutes with guys like Ant, Jaden, NAW, and Mike. Instead, we are throwing them in the deep end without having taught them how to swim.

Regarding the 24 picks, our entire rotation is coming back. Even if we lose Kyle (doubtful,) we will have a new vet minimum who likely will get higher priority over anyone we add. Therefore, any players we select in either round will be projects.

shrink wrote:Smitty claims Towns is the ninth worst contract in the NBA

https://www.spotrac.com/news/nbas-10-worst-value-contracts-2230

Agree?

winforlose wrote:

shrink wrote:Smitty claims Towns is the ninth worst contract in the NBA

https://www.spotrac.com/news/nbas-10-worst-value-contracts-2230

Agree?

No. Especially if Karl comes back in time for the 1st or 2nd round and is healthy enough to give quality minutes. The argument that the Griz were better without Ja because Tyus was able to keep them winning without him was… flawed at best. Same goes for KAT.

TimberKat wrote:What is the avg or median salary of NBA all stars? I think he will be overpaid but not close to 10 worse.

shrink wrote:

TimberKat wrote:What is the avg or median salary of NBA all stars? I think he will be overpaid but not close to 10 worse.

Very few (24) All Stars don’t make the max these days, unless the are still on rookie scale, and ABOUT to make the max. In fact, it looks like there are 46 players who are either on max deals, or about to get max extensions (Ant, LaMelo, Haliburton, Bane), so half the players on max deals didn’t even make the All Star game.

https://www.basketball-reference.com/contracts/players.html

Now, Towns will be getting the supermax, which is about $7 mil more than normal max deals. If Ant gets All NBA, his deal will be $7 mil more, but because of his lesser years of experience, it will be equal to or less than some of the other max deals out there.

To me, I have no trouble saying Towns is one of the best 46 players in the NBA, and I don’t have a problem with the deal. The chance for Minnesota to lock up a player of his caliber, who actually wants to sacrifice to help Minnesota win a ring, makes him worth his deal to us.

TimberKat wrote:

shrink wrote:

TimberKat wrote:What is the avg or median salary of NBA all stars? I think he will be overpaid but not close to 10 worse.

Very few (24) All Stars don’t make the max these days, unless the are still on rookie scale, and ABOUT to make the max. In fact, it looks like there are 46 players who are either on max deals, or about to get max extensions (Ant, LaMelo, Haliburton, Bane), so half the players on max deals didn’t even make the All Star game.

https://www.basketball-reference.com/contracts/players.html

Now, Towns will be getting the supermax, which is about $7 mil more than normal max deals. If Ant gets All NBA, his deal will be $7 mil more, but because of his lesser years of experience, it will be equal to or less than some of the other max deals out there.

To me, I have no trouble saying Towns is one of the best 46 players in the NBA, and I don’t have a problem with the deal. The chance for Minnesota to lock up a player of his caliber, who actually wants to sacrifice to help Minnesota win a ring, makes him worth his deal to us.

Yes, my only issue is the "super". He got that under the old rules and get NBA 3rd team only once is not "super" to me. A couple time on 3rd team is still worth "super" in my opinion.