Forbes #'s and team debt levels

Post #1 » by **HartfordWhalers** » Thu Jan 27, 2011 1:28 pm

Team debt levels...

Ranged from 0 to 69% for the repossessed Hornets (ignoring Nets).
Average 38% of team values (averaged by team, not value). 31% excluding the Nets.

Total Team debts of 3.8 Billion (3.1 excluding Nets ergo the exclusions above).

For the how long can a lock out go and what are the difference between past Forbes and Stern numbers, you are looking at something around 300 million yearly in interest, which before any team expenses would be accrued.

Teams with exceeding high debt (ignoring the already repossessed NO and NJ):

Dallas 200 million (46%)
Cleveland 199 (56%)
Atl 186 (63%)
Phx 185 (45%)
Indy 151 (56%)
Memphis 149 (56%)
Charlotte 149 (53%)
GS 149 (41%)
OKC 141 (43%)

Given revenue only in the range of 100 million per team...

Dunkenstein · Post #2 » by **Dunkenstein** » Fri Jan 28, 2011 6:26 pm

Dwain Price of the Fort Worth Star-Telegram: "Mark Cuban doesn’t give any credence to Forbes Magazine’ recent story listing the value of NBA teams. The Dallas Mavericks’ owner gave the story absolutely no value. 'That’s just useless,’ Cuban said before Thursday’s game against Houston. 'There’s nothing useless as evaluation than what Forbes does. It’s worthless, it’s meaningless and worthless. You can quote me on that. . . No one ever looks at buying or selling a franchise based off of Forbes’ numbers,’ Cuban said. 'You might as well go to a second grader and ask him how high can they count.’ "

Post #3 » by **HartfordWhalers** » Fri Jan 28, 2011 6:31 pm

Sounds fair as a complaint about the value. Franchises aren't exactly sold frequently to begin with.

But does that have any bearing on operating income or debt levels? I wouldn't think so.

Warspite · Post #4 » by **Warspite** » Tue Feb 22, 2011 7:44 am

Cuban is right about team resale value. However having more debt than a yrs revenue and being in the red is a reciepe for disastor. You no longer can get loans at that debt to income ratio.

jimm1909 · Post #5 » by **jimm1909** » Fri Jan 13, 2012 8:52 pm

Warspite wrote:Cuban is right about team resale value. However having more debt than a yrs revenue and being in the red is a reciepe for disastor. You no longer can get loans at that debt to income ratio. bad credit loans

Cuban always hits the nail on the head in these business/sports issues. Wish we had more owners like him in the league, and in all of sports.

-Jim