The Warriors *Can* Afford a $300m Payroll

[likashing]

https://www.forbes.com/sites/patrickmurray/2018/09/17/can-the-golden-state-warriors-afford-a-300m-payroll/#ccc8e6424fd3

Just think this deserves its own thread. It is a great article compared to the low intelligence ESPN talking heads claiming "oh the lux tax..." and they don't even know anything about business.

The smarter one Bobby Marks writes more informative pieces, but he assumes McCaw makes $8m etc and everyone gets their absolute 5 year max contracts, not 1 dime less, Jimmy Butler style, so he can reach a huge $400m number as click bait.

[HiRez]

This is pretty interesting, probably the only team in the league that can afford to do this because of all the factors mentioned (maybe the Lakers could?). Gotta love Lacob, he will sacrifice hundreds of millions of dollars to keep it rolling if he has to (not that they will lose money, as the article points out). Even if other owners could do it, I bet most of them wouldn't because it would cut into their profits too much.

Iguodala is going to be tricky though, he might end up costing them like $50M (with the salary plus the repeater taxes on that salary) and not even be able to play. It's week 1 and he's already injured this year. Yes, he's super important for the playoffs, but if you can't count on him being able to go when needed he looks awfully expensive. It hurt us vs. the Rockets last year when he couldn't play and maybe the only reason we advanced is Chris Paul went down at the same time. That said, I really don't know who you replace him with and he's probably not a really attractive trade target for anyone either, unless someone needs an expiring contract to make a trade happen, but I don't see us letting him go that way.

[likashing]

This is pretty interesting, probably the only team in the league that can afford to do this because of all the factors mentioned (maybe the Lakers could?). Gotta love Lacob, he will sacrifice hundreds of millions of dollars to keep it rolling if he has to (not that they will lose money, as the article points out). Even if other owners could do it, I bet most of them wouldn't because it would cut into their profits too much.

Iguodala is going to be tricky though, he might end up costing them like $50M (with the salary plus the repeater taxes on that salary) and not even be able to play. It's week 1 and he's already injured this year. Yes, he's super important for the playoffs, but if you can't count on him being able to go when needed he looks awfully expensive. It hurt us vs. the Rockets last year when he couldn't play and maybe the only reason we advanced is Chris Paul went down at the same time. That said, I really don't know who you replace him with and he's probably not a really attractive trade target for anyone either, unless someone needs an expiring contract to make a trade happen, but I don't see us letting him go that way.

The Lakers can afford it, but they won't. The Lakers' profit is basically Jeanie, Jimbo, and the family's paycheck. They are not going to run a payroll that will eat too much into the Lakers' profit. Otherwise who will pay for their private jets and stuff?

The Warriors are fine until Kirk etc take over from Joe.

Iguodala only have 2 seasons left including this one. He already made a difference in the last playoffs and helped us earn another ring. We are on track to contend again this season and he looks fine when he is on the court. I will not complain much even if he falls off next season. If he falls off we won't need to pay him after 19-20.

[Scoots1994]

As fans we should remember to appreciate where we are right now. Let's not pick apart every possible future negative without first understanding and appreciating the gift we've got of having not just a good team, not just a title winning team, but an all-time great team.

On topic, the Warriors owners are unlike many other NBA team owners, they are speculators who look not just at the fun of having a franchise, and not at short term profit but at long term profit and increasing the value of the company. They are totally willing to lose money now for a return on the investment, and the Warriors valuation after a couple titles in SF will pay for that payroll a few times over I suspect.

[Warriorfan]

With the increase in ream valuation and contracted revenue of over 2 billion warriors long term are in a strong financial position .

Team is probably cash strapped due to private financing of the Chase center. So I expect some cost cutting but they will pay the stars.

[Scoots1994]

With the increase in ream valuation and contracted revenue of over 2 billion warriors long term are in a strong financial position .

Team is probably cash strapped due to private financing of the Chase center. So I expect some cost cutting but they will pay the stars.

They are going to make a LOT of money from day 1 the Chase center opens. It is the ONLY premier indoor arena of that size in SF. The acts playing there and the prices of the tickets are going to be impressive.

[wco81]

So far this year, the networks have shifted most of the attention to the Lakers. It'll be interesting to see if the Warriors still get the highest ratings in national games and whether Curry and KD jersey sales will still be at the top.

If the Warriors win the title this season, the owners will be hard-pressed not to pay Klay and KD, because they'd be going for an historic 4 titles in a row next year.

But Draymond could be the odd man out unless they win 4 in a row and are poised to go for 5 straight.

[Scoots1994]

So far this year, the networks have shifted most of the attention to the Lakers. It'll be interesting to see if the Warriors still get the highest ratings in national games and whether Curry and KD jersey sales will still be at the top.

If the Warriors win the title this season, the owners will be hard-pressed not to pay Klay and KD, because they'd be going for an historic 4 titles in a row next year.

But Draymond could be the odd man out unless they win 4 in a row and are poised to go for 5 straight.

I would be STUNNED if Lakers are not all over the top of the merch sales.

[wco81]

Kevin Arnovitz reported that Warriors are expecting as much as $200 million in additional BRI revenues over what they make at Oracle.

They’ve also sold off 55% interest in an adjacent 580k sq. Feet office building, the proceeds of which would not count in BRI.

So they should have the financial resources.

Now to make sure the players don’t hate each other.

[wco81]

Wiretap story that Warriors are projecting a 9-figure increase in revenues annually.

But no sourcing.

[cpower]

I guess its all about the income, from Lacob's point of view , how much more money he will get with winning more rings? The guy will figure it out and decide based on that.

[ILOVEIT]

I guess its all about the income, from Lacob's point of view , how much more money he will get with winning more rings? The guy will figure it out and decide based on that.

For men with more money they can ever spend, I would hope that Lacob is more about how to clearly beyond all doubt stamp the Warriors as THE greatest team of all time. The only way to do that without a doubt, IMO, is to make a run like 8 of 10.

I'm guessing the question is not if they can afford 300M, it's who do they want to pay that 300M.

I'm so F'ing greedy...hehe....what imagine if all 5 said...sure..pay cut...bring in AD

Curry, Klay, Green, Durant, AD...smack smack smack

[LeonGenesis]

Everyone should make a sign for tonight's game "AD - Bay Area loves you"

[likashing]

So far this year, the networks have shifted most of the attention to the Lakers. It'll be interesting to see if the Warriors still get the highest ratings in national games and whether Curry and KD jersey sales will still be at the top.

If the Warriors win the title this season, the owners will be hard-pressed not to pay Klay and KD, because they'd be going for an historic 4 titles in a row next year.

But Draymond could be the odd man out unless they win 4 in a row and are poised to go for 5 straight.

National attention going to the Lakers mean nothing to the Warriors bottom line.

[likashing]

http://www.espn.com/nba/insider/story/_/id/21652258/can-golden-state-warriors-afford-dynasty-price-unprecedented-nba

I am re-reading this old article of Bobby Marks again and laughed my ass off. Dude can't even have the right title for his articles - "Can the Warriors afford a dynasty?" They **** can.

He makes assumptions that we will pay McCaw $6m-$8m *per season*, and one of Klay/Draymond will make the super-max, while the other will get the 5-year w/ 8% raises not a dime less.

No wonder he is now with ESPN and without a front office job after the Nets. He is just a number cruncher who can't run a team and has no business acumen. He also wishes every day the Warriors will break apart because of the payroll, with completely no understanding that the Warriors' business side can fund a super team. This guy is even a former assistant-GM?

Even the Forbes writer is smarter than this dude.

[Coxy]

Meanwhile, back at the Lacob estate....

[Mylie10]

Here's former Warriors owner Chris Cohan;

[likashing]

Here's former Warriors owner Chris Cohan;

$450m is not shabby but it must suck to be Cohan knowing the Warriors are worth ~$3b now. Even if he kept the Warriors and we kept sucking, the Clippers fetched $2b so we should still be worth $1b-$1.5b without the current success...

[wco81]

Does anyone know what their current revenues are?

They have to have one of the highest ticket prices in the NBA but their local TV deal is probably not as lucrative as the deals several other NBA teams have.

Be interesting to see what kind of change there is from Oracle to Chase in terms of basketball revenues. For sure non NBA revenues will go from virtually nothing to probably at least tens of millions.

But it seems the team may be limiting spending on the coaching staff, training and front office personnel. Unless Lacob is really overpaying his sons.

[KevinMcreynolds]

In Joe we trust