NBA losing 300 mil this season?

Pancho_Pantera · Post #1 » by **Pancho_Pantera** » Sat Apr 23, 2011 12:53 am

WTF I don't even.

All season long they've been constantly talking about how this season has been one of the greatest seasons the NBA has had economic wise and now Real GM has a story how the league is out 300 million? I'm glad they care to explain how they ended up in the red.

Beith Kogans · Post #2 » by **Beith Kogans** » Sat Apr 23, 2011 12:55 am

i just saved a bunch of money on my car insurance by switching to geico

LascelleL · Post #3 » by **LascelleL** » Sat Apr 23, 2011 12:57 am

I call bull

colts18 · Post #4 » by **colts18** » Sat Apr 23, 2011 1:10 am

Accountants can make any situation look amazing or horrible. That's why they are accountants. They could easily show the NBA with a 100 Million profit with a few moves.

daniel3 · Post #5 » by **daniel3** » Sat Apr 23, 2011 1:25 am

Marlins made no money again too

.

Darain · Post #6 » by **Darain** » Sat Apr 23, 2011 1:31 am

They had to pay for the new paint when Griffin stepped on the Kia?

wilbo · Post #7 » by **wilbo** » Sat Apr 23, 2011 1:56 am

If this is real why would anyone buy an NBA team? Why would the NBA even be in business if they have been losing this much money for years?

Teen Girl Squad · Post #8 » by **Teen Girl Squad** » Sat Apr 23, 2011 2:01 am

It was alleged $400 million last year so were going in the right direction at least, regardless of book cooking or not.

wilbo wrote:If this is real why would anyone buy an NBA team? Why would the NBA even be in business if they have been losing this much money for years?

Several reasons. First of all, most owners don't buy sports teams for profit, they don't give great ROI compared to other avenues. Secondly, NBA teams are a low price now because of the annual loss, but interest in the NBA has been improving significantly and a CBA will be more profit friendly, making it an ideal time to buy.

Gordon Bombay · Post #9 » by **Gordon Bombay** » Sat Apr 23, 2011 2:05 am

i hope the players association makes the nba prove all these money loss allegations that stern throws out there

Bearsfan1989 · Post #10 » by **Bearsfan1989** » Sat Apr 23, 2011 2:07 am

Who cares.....

no D in Hibachi · Post #11 » by **no D in Hibachi** » Sat Apr 23, 2011 2:08 am

colts18 wrote:Accountants can make any situation look amazing or horrible. That's why they are accountants. They could easily show the NBA with a 100 Million profit with a few moves.

That's why the Federal government created the Financial Accounting Standards Board who instituted Generally Accepted Accounting Principles so that financial statements could be presented fairly and accruately. In addition the NBA records have been independently audited. It annoys me when people rag on accountants like they can move the bottom line by $400 million with a nip or tuck here. There are way too many rules and regulations in place that they can't swing the pendulum very much without facing incredible penalty. Do you realize many people who commit financial fraud spend more time in jail than criminals who commit murder? The government, and the court of public opinion, take this very seriously.

Dry_Fish · Post #12 » by **Dry_Fish** » Sat Apr 23, 2011 2:23 am

Financial crisis laugh at accounting rules and principles. Bank owns a mortgage that owner of the underwater house isn't paying? Don't foreclose yet so it doesn't hit our books.

hard49 · Post #13 » by **hard49** » Sat Apr 23, 2011 2:35 am

You know it is a lie. That means that they are losing $10 million per team with no team making a profit.

jax98 · Post #14 » by **jax98** » Sat Apr 23, 2011 2:39 am

Gordon Bombay wrote:i hope the players association makes the nba prove all these money loss allegations that stern throws out there

They have to. The NBA loses face if they don't open up their books. With the speculation already in place on a national scale, it'd be a dumb move by the NBA to deny the NBPA access to their calculations.

bona fide rube · Post #15 » by **bona fide rube** » Sat Apr 23, 2011 2:46 am

It's possible. Teams like the Lakers, Celtics, Heat, etc. are obviously making money. What about teams that aren't very good? $300 million seems a bit high, but it's possible that teams which aren't drawing fans could lose money quick. I'm assuming there's a lot of expenses that go into owning a team.

D-31 · Post #16 » by **D-31** » Sat Apr 23, 2011 2:49 am

Morten Jensen wrote:
Gordon Bombay wrote:i hope the players association makes the nba prove all these money loss allegations that stern throws out there

They have to. The NBA loses face if they don't open up their books. With the speculation already in place on a national scale, it'd be a dumb move by the NBA to deny the NBPA access to their calculations.

They already have. Stern was warning about a huge dip 3 years ago, hasn't happened.

Vertical Limit · Post #17 » by **Vertical Limit** » Sat Apr 23, 2011 2:55 am

Honestly sounds like BS to me but Stern better note one thing during these negotiations: you lose even more if there's no season.

no D in Hibachi · Post #18 » by **no D in Hibachi** » Sat Apr 23, 2011 2:58 am

Morten Jensen wrote:
Gordon Bombay wrote:i hope the players association makes the nba prove all these money loss allegations that stern throws out there

They have to. The NBA loses face if they don't open up their books. With the speculation already in place on a national scale, it'd be a dumb move by the NBA to deny the NBPA access to their calculations.

David Stern said on Mike and Mike a week ago that the NBA gave the players union the 2009 and 2010 certified financial statements. Which means the NBA books have been independently audited and presented in accordance with GAAP for the review of the players union.

jax98 · Post #19 » by **jax98** » Sat Apr 23, 2011 3:04 am

Thank you no D. When did the league hand over those statements, and was anything said of a timetable in which the NBPA would respond to said statements?

reapaman · Post #20 » by **reapaman** » Sat Apr 23, 2011 3:05 am

From my understanding thats a 300 mil loss on team operation that some individual teams didn't make up own their own with regular season ticket sales and things like merchandise that the team sells to people directly usually in their areana. That loss or profit is computed at the end of the regular season.

They make it up with outside retailer merchadise sales (i.e. Walmart or Nba store), playoff ticket sales, tv revenue, luxary tax allocation ect... but that doesn't come till sometime after the playoffs. It may not seem like a big deal to some people since they typically get it back or more later on in the year but to some less wealthy owners, waiting months to get your money back can be restricting to your operations.