[Krawczynski] Alex Rodriguez and Marc Lore in serious talks to become the next owners of the Minnesota Timberwolves

[thinktank]

I didn't walk anything back. I believe you have a vivid imagination. Dane didn't prove any of my conclusions erroneous. I've barely made any conclusions. I didn't say you were telling falsities I just thought you let your imagination run wild to come up with the ideas you came up with. As I said you came up with ideas that I could never have come up with in my wildest dreams.

That’s because I’m smart.

Dane did disprove the story. The projection is meaningless. I think Dane even used the word “nothing”.

You have to look at the entire context of any “news” nugget or stat. The context is what governs the value of the thing.

We all think we're smart. Dane didn't prove or disprove anything.

Ok.

(File this interaction under: You can lead a horse to water but you can’t make them drink.)

[shrink]

Ok, here is where I am on this:

Woj’s quote is this: “In documents shared with Taylor, the NBA and The Carlyle Group, Lore and Rodriguez rendered a budget projection as potential majority owners that would’ve lowered team’s payroll to $171M beginning next season – below a projected $172M luxury tax threshold, sources tell ESPN.”

Dane’s quote: “This idea of submitting a budget was pretty easy to ask around about because it didn’t really line up logically in my head. I think the best way I can distill down in my head is this was A budget that was submitted but not THE budget. I talked to one team executive that said, ‘we have over 100 budgets in a year. They are all based on performance.’…It does suggest that their actual budget could be different.”

1. I believe both sources.

2. I think Dane is missing the point in his question. I agree with him, that teams probably have multiple budgets. But this was the one Lore and ARod SUBMITTED to Taylor, the other NBA owners, and the biggest thing I think people miss .. Carlyle! This is their funding source, and would require an accurate projection! Imagine going to get a loan for a new house, saying, “My projections are that I eat ramen noodle every night, don’t use any electricity, and don’t put $1 into maintaining the new house. Hell, I might sell some of it off!” Does the banker say, “well, if you’re being honest and don’t spend $1 more later, we’ll agree to your loan?” Bad for us fans.

3. If Lore and ARod have the money to invest in the team, why in the HELL would they choose to present this as their budget? Don’t the other owners prefer to hear that a new owner will invest in the team? Don’t the new owners prefer a team that pays lux taxes, versus an owner that wants a check from them for their split of the lux share? If Lore and ARod have the money to buy the team, I haven’t seen a rationale to explain presenting THIS budget.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux. Me too - it’s a poor business decision if they don’t invest in this team going forward. To me, the fact that Lore and ARod presented this budget is more evidence they don’t have the money to invest in the team.

[KGdaBom]

Ok, here is where I am on this:

Woj’s quote is this: “In documents shared with Taylor, the NBA and The Carlyle Group, Lore and Rodriguez rendered a budget projection as potential majority owners that would’ve lowered team’s payroll to $171M beginning next season – below a projected $172M luxury tax threshold, sources tell ESPN.”

Dane’s quote: “This idea of submitting a budget was pretty easy to ask around about because it didn’t really line up logically in my head. I think the best way I can distill down in my head is this was A budget that was submitted but not THE budget. I talked to one team executive that said, ‘we have over 100 budgets in a year. They are all based on performance.’…It does suggest that their actual budget could be different.”

1. I believe both sources.

2. I think Dane is missing the point in his question. I agree with him, that teams probably have multiple budgets. But this one was SUBMITTED to Taylor, the other NBA owners, and the biggest thing I think people miss .. Carlyle! This is their funding source, and would require an accurate projection. Imagine going to get a loan for a new house, saying, “My projections are that I eat ramen noodle every night, don’t use any electricity, and don’t put $1 into maintaining the new house. Hell, I might sell some of it off!” Does the banker say, “well, since you told me that, we can loan you the money.”

3. If Lore and ARod have the money to invest in the team, why would they choose to present this as their budget? Don’t the other owners prefer to hear that a new owner will invest in the team? Don’t the new owners prefer a team that pays lux taxes, versus an owner that wants a check from them for a lux share? If Lore and ARod have the money to buy the team, I haven’t seen a rationale to explain presenting THIS budget.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux. Me too - it’s a poor business decision if they don’t invest in this team going forward. To me, the fact that Lore and ARod presented this budget is more evidence they don’t have the money to invest in the team.

Thank you. Somehow in ThinkTank's vivid imagination he thinks Dane proved something.

[winforlose]

Ok, here is where I am on this:

Woj’s quote is this: “In documents shared with Taylor, the NBA and The Carlyle Group, Lore and Rodriguez rendered a budget projection as potential majority owners that would’ve lowered team’s payroll to $171M beginning next season – below a projected $172M luxury tax threshold, sources tell ESPN.”

Dane’s quote: “This idea of submitting a budget was pretty easy to ask around about because it didn’t really line up logically in my head. I think the best way I can distill down in my head is this was A budget that was submitted but not THE budget. I talked to one team executive that said, ‘we have over 100 budgets in a year. They are all based on performance.’…It does suggest that their actual budget could be different.”

1. I believe both sources.

2. I think Dane is missing the point in his question. I agree with him, that teams probably have multiple budgets. But this was the one Lore and ARod SUBMITTED to Taylor, the other NBA owners, and the biggest thing I think people miss .. Carlyle! This is their funding source, and would require an accurate projection! Imagine going to get a loan for a new house, saying, “My projections are that I eat ramen noodle every night, don’t use any electricity, and don’t put $1 into maintaining the new house. Hell, I might sell some of it off!” Does the banker say, “well, if you’re being honest and don’t spend $1 more later, we’ll agree to your loan?” Bad for us fans.

3. If Lore and ARod have the money to invest in the team, why in the HELL would they choose to present this as their budget? Don’t the other owners prefer to hear that a new owner will invest in the team? Don’t the new owners prefer a team that pays lux taxes, versus an owner that wants a check from them for their split of the lux share? If Lore and ARod have the money to buy the team, I haven’t seen a rationale to explain presenting THIS budget.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux. Me too - it’s a poor business decision if they don’t invest in this team going forward. To me, the fact that Lore and ARod presented this budget is more evidence they don’t have the money to invest in the team.

All valid. But, I think you missed two important points, one on your side, the other a counter point. Supporting you, under the revenue sharing agreement the top 15 grossing teams split 50% of their revenue with the bottom 15. The Wolves being more profitable this year than any past year might upset the balance and make us a giver rather than a taker. This hurts profitability even more long term.

The counterpoint is equally as important. When you become super successful you become super profitable. You get more national games which increase your tv money. You get better merchandise sales, charge more for tickets and season tickets, you sell more expensive concessions, ect… While half of that goes to revenue sharing, the other half pays off the owners costs. It is also true that A and L want a new building, while Glen is fine with TC. But the new building will bring in more revenue as well, (assuming it is tax payer funded.) Cutting costs and damaging competitiveness isn’t always a path profit. To borrow your house example above, people take mortgages even when they have the cash to buy a house, because sometimes the money can do better in the market than paying off the loan. In Lore’s case, he wants to build Wonder into a multi billion dollar company, and would rather use other people’s money to keep the team running as a secondary income source (long term investment.) Kind of like using renters to pay off a mortgage for you, then you own the house and the debt is gone. So it is plausible that the ownership group would have multiple budgets for prospective buyers and each would be a contingency based on expected profitability, which is of course based on performance.

[shrink]

I appreciate this, and Lore has a history of using other people’s money, even before coming here.

It does seem hard for me to imagine Lore is sitting on a more profitable return than what he’s getting with this franchise nearly doubling in value. You would think if he had the money, he would sink it there and not give away part of the profits to Carlyle or last times’ 4% investor. On the other hand, the news (which can never be taken as 100% accurate) states that he has sunk most of his money into Wonder.

The NBA wants profitable teams. Funding the Wolves next year increases the profitability of the NBA, and all teams benefit. Spending money to maintain the Wolves roster is the obvious way to improve profitability, especially longterm if it leads to a stadium. To do so though, an owner needs the cash upfront to invest. The plan that Lore/ARod presented seems like the opposite of what they should have said, and it makes me nervous that this is the because it’s the only thing they COULD say.

[thinktank]

Ok, here is where I am on this:

Woj’s quote is this: “In documents shared with Taylor, the NBA and The Carlyle Group, Lore and Rodriguez rendered a budget projection as potential majority owners that would’ve lowered team’s payroll to $171M beginning next season – below a projected $172M luxury tax threshold, sources tell ESPN.”

Dane’s quote: “This idea of submitting a budget was pretty easy to ask around about because it didn’t really line up logically in my head. I think the best way I can distill down in my head is this was A budget that was submitted but not THE budget. I talked to one team executive that said, ‘we have over 100 budgets in a year. They are all based on performance.’…It does suggest that their actual budget could be different.”

1. I believe both sources.

2. I think Dane is missing the point in his question. I agree with him, that teams probably have multiple budgets. But this one was SUBMITTED to Taylor, the other NBA owners, and the biggest thing I think people miss .. Carlyle! This is their funding source, and would require an accurate projection. Imagine going to get a loan for a new house, saying, “My projections are that I eat ramen noodle every night, don’t use any electricity, and don’t put $1 into maintaining the new house. Hell, I might sell some of it off!” Does the banker say, “well, since you told me that, we can loan you the money.”

3. If Lore and ARod have the money to invest in the team, why would they choose to present this as their budget? Don’t the other owners prefer to hear that a new owner will invest in the team? Don’t the new owners prefer a team that pays lux taxes, versus an owner that wants a check from them for a lux share? If Lore and ARod have the money to buy the team, I haven’t seen a rationale to explain presenting THIS budget.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux. Me too - it’s a poor business decision if they don’t invest in this team going forward. To me, the fact that Lore and ARod presented this budget is more evidence they don’t have the money to invest in the team.

Thank you. Somehow in ThinkTank's vivid imagination he thinks Dane proved something.

You two are both choosing to ignore what Dane said:

The projection is just one projection, it is non-binding, and it is not the future team salary budget.

It has zero value with regard to future speculation about our team salary.

If you don’t agree with that, than you’re just being stubborn.

Shrink, you said you messaged Dane. Did he get back to you? If yes, share it.

[KGdaBom]

Ok, here is where I am on this:





1. I believe both sources.

2. I think Dane is missing the point in his question. I agree with him, that teams probably have multiple budgets. But this one was SUBMITTED to Taylor, the other NBA owners, and the biggest thing I think people miss .. Carlyle! This is their funding source, and would require an accurate projection. Imagine going to get a loan for a new house, saying, “My projections are that I eat ramen noodle every night, don’t use any electricity, and don’t put $1 into maintaining the new house. Hell, I might sell some of it off!” Does the banker say, “well, since you told me that, we can loan you the money.”

3. If Lore and ARod have the money to invest in the team, why would they choose to present this as their budget? Don’t the other owners prefer to hear that a new owner will invest in the team? Don’t the new owners prefer a team that pays lux taxes, versus an owner that wants a check from them for a lux share? If Lore and ARod have the money to buy the team, I haven’t seen a rationale to explain presenting THIS budget.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux. Me too - it’s a poor business decision if they don’t invest in this team going forward. To me, the fact that Lore and ARod presented this budget is more evidence they don’t have the money to invest in the team.

Thank you. Somehow in ThinkTank's vivid imagination he thinks Dane proved something.

You two are both choosing to ignore what Dane said:

The projection is just one projection, it is non-binding, and it is not the future team salary budget.

It has zero value with regard to future speculation about our salary cap.

If you don’t agree with that, than you’re just being stubborn.

Shrink, you said you messaged Dane. Did he get back to you? If yes, share it.

I'm not being stubborn at all. The budget they chose to submit for the approval and lending process isn't binding, but it's what they chose to represent their vision for the Wolves future. Nothing was proven or disproven in Dane's podcast. Not one single thing.

[thinktank]

Thank you. Somehow in ThinkTank's vivid imagination he thinks Dane proved something.

You two are both choosing to ignore what Dane said:

The projection is just one projection, it is non-binding, and it is not the future team salary budget.

It has zero value with regard to future speculation about our salary cap.

If you don’t agree with that, than you’re just being stubborn.

Shrink, you said you messaged Dane. Did he get back to you? If yes, share it.

I'm not being stubborn at all. The budget they chose to submit for the approval and lending process isn't binding, but it's what they chose to represent their vision for the Wolves future. Nothing was proven or disproven in Dane's podcast. Not one single thing.

It is NOT their vision for the Wolves future. It’s not even a “budget”, so don’t call it that. That’s why Dane said “teams create hundreds of projections”. You just ASSUME it’s their future vision.

[shrink]

You two are both choosing to ignore what Dane said:

The projection is just one projection, it is non-binding, and it is not the future team salary budget.

It has zero value with regard to future speculation about our team salary.

If you don’t agree with that, than you’re just being stubborn.

Shrink, you said you messaged Dane. Did he get back to you? If yes, share it.

I definitely do not remember Dane saying “it has zero value with regard to future speculation about our team salary.” I included Dane’s quotes in my previous post.

And I think I made a pretty good case why that’s probably not true in my previous post as well. I have yet to hear anyone make the case why it is. Even if Lore and ARod have hundreds of projections (and I don’t believe they do), THIS is the one they chose to SUBMIT. One that does not cast them in a good light, with NBA owners or Timberwolves Fans. Why did they do this if it ISN’T true?

And yes, Dane got back to me, and I talked about it at the start of 4.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux.

[Klomp]

I don't think I ever saw this tweet brought over here.

Read on Twitter

All of this noise about projections or Connelly's opt-out or lockouts or anything else really is just that. Noise. It comes down to whether or not Lore and Rodriguez made the final payment on time or whether it was late. That will decide whether or not the contract was breached and who will ultimately be the team majority owner(s) going forward.

[Klomp]

In unrelated but possibly related news, did anyone see that ARod's real estate company (separate of Lore) sold the Eagan apartment complex they owned back in February?

As of Thursday afternoon, a certificate of real estate value with pricing details has not been made public. Finance & Commerce reported that Monument paid $22.5 million for Lexington Hills apartments in 2016.

https://finance-commerce.com/2024/02/a-rods-group-sells-eagan-apartment-complex/

[karch34]

On a side note for not being considered a meddling owner and kind of hands off, Taylor is key part of:
Labor agreement and lockout in 90s
Contracts being capped
Punishing teams by taking away picks

And soon no incremental team sales.

[Klomp]

On a side note for not being considered a meddling owner and kind of hands off, Taylor is key part of:
Labor agreement and lockout in 90s
Contracts being capped
Punishing teams by taking away picks

And soon no incremental team sales.

The true game-changer

[BlacJacMac]

You two are both choosing to ignore what Dane said:

The projection is just one projection, it is non-binding, and it is not the future team salary budget.

It has zero value with regard to future speculation about our team salary.

If you don’t agree with that, than you’re just being stubborn.

Shrink, you said you messaged Dane. Did he get back to you? If yes, share it.

I definitely do not remember Dane saying “it has zero value with regard to future speculation about our team salary.” I included Dane’s quotes in my previous post.

And I think I made a pretty good case why that’s probably not true in my previous post as well. I have yet to hear anyone make the case why it is. Even if Lore and ARod have hundreds of projections (and I don’t believe they do), THIS is the one they chose to SUBMIT. One that does not cast them in a good light, with NBA owners or Timberwolves Fans. Why did they do this if it ISN’T true?

And yes, Dane got back to me, and I talked about it at the start of 4.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux.

Do we know for a fact that they only submitted this one?

Is it possible they submitted numerous plans all based on different variables? And maybe this was the only one that Glen leaked because it was most beneficial to him?

[TimberKat]

You two are both choosing to ignore what Dane said:

The projection is just one projection, it is non-binding, and it is not the future team salary budget.

It has zero value with regard to future speculation about our team salary.

If you don’t agree with that, than you’re just being stubborn.

Shrink, you said you messaged Dane. Did he get back to you? If yes, share it.

I definitely do not remember Dane saying “it has zero value with regard to future speculation about our team salary.” I included Dane’s quotes in my previous post.

And I think I made a pretty good case why that’s probably not true in my previous post as well. I have yet to hear anyone make the case why it is. Even if Lore and ARod have hundreds of projections (and I don’t believe they do), THIS is the one they chose to SUBMIT. One that does not cast them in a good light, with NBA owners or Timberwolves Fans. Why did they do this if it ISN’T true?

And yes, Dane got back to me, and I talked about it at the start of 4.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux.

Do we know for a fact that they only submitted this one?

Is it possible they submitted numerous plans all based on different variables? And maybe this was the only one that Glen leaked because it was most beneficial to him?

That is my gut feel. Maybe the question is: "In the event your creditors listed in appx A doesn't loan you the money, what will be your plan?". Answer: we will lower the spending of the team to a level that our reserved funds will cover.

[Nick K]

So he’s not involved in running the club, he’s just expected to pay the bills?

I’m sure he’s glad you’re already spending his money.

That’s actually technically correct.

LP’s don’t have any legal right to input in how things are run.

That’s my point.

Why would a guy who doesn’t have controlling interest or even input in the team foot all the bills?

Who said he was footing all the bills? That is a total mischaracterization and part of the reason this thread has turned to bleep.

Show me any evidence that Lo/Rod can't meet payroll! Show me something that isn't conjecture from some idiot that plays sleuth detective on the internet.

Look, I've spent my entire career in the financial business and I still have plenty of friends in the business. One guy in particular is worth 8 zeros. He's been doing mergers and acquisitions for years. He told me Lore is worth at least a couple of billion. He said anybody that doesn't think Lore financially viable to own and run the team just doesn't have a clue. That's all I can tell you.

Who am I to believe?

[Nick K]

An interesting perspective on the situation:

GoldenVIKE
I am not an insider at all, but I am a senior executive with a Fortune 100 insurance company, so I have seen hundreds of 8-9-10 figure business disputes over my career. As a result I feel like I have a strong sense for how people like Glen Taylor (and A-Rod and Lore for that matter) operate in scenarios like this. Again, this is all speculation, but here's my best guess...

1. There was obviously some kind of clash of egos sometime between the lasagna dinner and Taylor's press release.

2. There's at least some contractual basis for Glen to feel he can cancel the sale. Perhaps it's just the "missed deadline" that everyone is focused on (and which Lore seems adamant they met, so we're clearly talking about a technicality or selective interpretations of an ambiguity in the language), but I'd bet there's a basis (at least in Glen's mind) for Glen's to take the actions he has. More on this later...

3. Glen is probably under a lot of pressure from his LPs (minority co-owners) on this deal because they're taking the same financial bath that he is (selling the asset for around 50% of its arguable value); and keep in mind that these are all likely prominent figures in Glen's world. I.e. not people that Glen wants to let down.

4. I bet Glen and his LPs have tried to extract extra value out of Lore/ARod prior to that press release. I bet he threatened many times something to the effect of, "You know, I gave you a really sweetheart deal based on [insert both contractual and informal promises and aspects of purported initial understanding], and now you've [insert whatever contractual breach technicalities or other purported infractions of their partnership you want to imagine]; and now we both know that the franchise is worth 2x, and I'm taking heat from my LPs over it. Tell ya what, how about we find common ground here. How about I still sell, but at a slightly higher (still "discounted") price? That way you still get your team; you still get a great deal; my LPs get something they can live with; my LPs don't want to murder me; and I still get to sail off in the sunset. How about that? How about an even $2B?"

5. I bet they went around in circles on this a few times, with Lore/ARod thinking it's a bluff and/or bull, and Taylor probably threatening to just cancel the whole contract. As they go around in circles, logic and financial details stay relevant, but the role of the egos get bigger and bigger. Eventually, Glen begins to believe his own story that he can cancel the sale. ARod and Lore increasingly don't want to give an inch out of both animosity, and a sense that they'd win in a contractual dispute/arbitration/suit. They hire a lawfirm to solidify that sense, and embolden their stance of not budging.

6. Eventually Taylor gets frustrated and decides to drop the bomb that he's canceling the sale.

7. We are here.

8. The outcome will be one of the following:

• If there's legit ambiguity in the contract, they'll probably settle by agreeing to increase the sale price by some amount that allows them both to declare victory. I'd guess something like $1.6-$1.9B.

• If the contract is as 'iron clad' as Lore claims, they go to arbitration and Taylor is eventually forced to sell the team--or at least a controlling interest in the team, perhaps at an adjusted price. Arbiters tend to split the baby rather than rule definitively for one side or the other. It's possible that he could take this to court in lieu of or in addition to arbitration (a zillion factors in play there), which would extend the timeline.

• If Lore/ARod were really in material breach of contract; or said something that was clearly an egregious violation of the principles of the agreement, then they may get kicked to the curb and have to just live as minority owners and/or sell their share. Examples of this could include if Glen somehow uncovered plans to move the team out of Minnesota; or something to do with Lore's actual commitment to the team given his other businesses that take up all of his time; a lack of financial resources or financial covenants that would demonstrate an ability to actually operate the team in the future (beyond just paying the purchase price); or an actual material breach of contract.

Not sure I said anything of value there; but if I had to guess we as fans will someday be happy with the outcome. Either ARod/Lore deserve the team and will get it. Or they don't deserve the team and won't get it. Unfortunately this could take many months or years to unfold.

https://www.canishoopus.com/timberwolves-scores-results/2024/4/11/24126192/wolves-vs-nuggets-final-score-recap-western-conference-playoffs-no-1-seed-anthony-edwards-jokic

Finally, this is a thoughtful and realistic scenario of what's happening. I'm glad you put this up. I do think Glen is trying to hold them up for more. No doubt. Glen really has nothing to lose in his mind by doing this. I think he will lose the arbitration.

BTW, there is nothing in here about the Lo/Rod group not having enough money so lets put that to rest. Its nonsense.

[BlacJacMac]

How about we wait and see what happens before talking in absolutes?

[Nick K]

Ok, here is where I am on this:

Woj’s quote is this: “In documents shared with Taylor, the NBA and The Carlyle Group, Lore and Rodriguez rendered a budget projection as potential majority owners that would’ve lowered team’s payroll to $171M beginning next season – below a projected $172M luxury tax threshold, sources tell ESPN.”

Dane’s quote: “This idea of submitting a budget was pretty easy to ask around about because it didn’t really line up logically in my head. I think the best way I can distill down in my head is this was A budget that was submitted but not THE budget. I talked to one team executive that said, ‘we have over 100 budgets in a year. They are all based on performance.’…It does suggest that their actual budget could be different.”

1. I believe both sources.

2. I think Dane is missing the point in his question. I agree with him, that teams probably have multiple budgets. But this was the one Lore and ARod SUBMITTED to Taylor, the other NBA owners, and the biggest thing I think people miss .. Carlyle! This is their funding source, and would require an accurate projection! Imagine going to get a loan for a new house, saying, “My projections are that I eat ramen noodle every night, don’t use any electricity, and don’t put $1 into maintaining the new house. Hell, I might sell some of it off!” Does the banker say, “well, if you’re being honest and don’t spend $1 more later, we’ll agree to your loan?” Bad for us fans.

3. If Lore and ARod have the money to invest in the team, why in the HELL would they choose to present this as their budget? Don’t the other owners prefer to hear that a new owner will invest in the team? Don’t the new owners prefer a team that pays lux taxes, versus an owner that wants a check from them for their split of the lux share? If Lore and ARod have the money to buy the team, I haven’t seen a rationale to explain presenting THIS budget.

4. I asked Dane for more information, and he said, “Sorry, I can’t elaborate too much.” Take that as you wish. Also note that he specifically stated “this is how I distill it in my head.” He is hopeful that both sides are willing to pay the lux. Me too - it’s a poor business decision if they don’t invest in this team going forward. To me, the fact that Lore and ARod presented this budget is more evidence they don’t have the money to invest in the team.

All valid. But, I think you missed two important points, one on your side, the other a counter point. Supporting you, under the revenue sharing agreement the top 15 grossing teams split 50% of their revenue with the bottom 15. The Wolves being more profitable this year than any past year might upset the balance and make us a giver rather than a taker. This hurts profitability even more long term.

The counterpoint is equally as important. When you become super successful you become super profitable. You get more national games which increase your tv money. You get better merchandise sales, charge more for tickets and season tickets, you sell more expensive concessions, ect… While half of that goes to revenue sharing, the other half pays off the owners costs. It is also true that A and L want a new building, while Glen is fine with TC. But the new building will bring in more revenue as well, (assuming it is tax payer funded.) Cutting costs and damaging competitiveness isn’t always a path profit. To borrow your house example above, people take mortgages even when they have the cash to buy a house, because sometimes the money can do better in the market than paying off the loan. In Lore’s case, he wants to build Wonder into a multi billion dollar company, and would rather use other people’s money to keep the team running as a secondary income source (long term investment.) Kind of like using renters to pay off a mortgage for you, then you own the house and the debt is gone. So it is plausible that the ownership group would have multiple budgets for prospective buyers and each would be a contingency based on expected profitability, which is of course based on performance.

Great post winforlose! This is the essence of how business financing is done. You always want to use as much of "other peoples money" as possible. It's NOT that Lo/Rod don't have the money. They have plenty in reserve. That is a silly argument.

Glen ASKED Lo/Rod to do this over a 3 year period. They could have raised the money sooner.

[Nick K]

You two are both choosing to ignore what Dane said:

The projection is just one projection, it is non-binding, and it is not the future team salary budget.

It has zero value with regard to future speculation about our salary cap.

If you don’t agree with that, than you’re just being stubborn.

Shrink, you said you messaged Dane. Did he get back to you? If yes, share it.

I'm not being stubborn at all. The budget they chose to submit for the approval and lending process isn't binding, but it's what they chose to represent their vision for the Wolves future. Nothing was proven or disproven in Dane's podcast. Not one single thing.

It is NOT their vision for the Wolves future. It’s not even a “budget”, so don’t call it that. That’s why Dane said “teams create hundreds of projections”. You just ASSUME it’s their future vision.

As I said before it was a PRO FORMA budget nothing more.

You are right as you have been in all of your posts.