Bucks Sold For $550M To Edens, Lasry

[cyrusdm]

Dude I am agreeing with your #3. I said for the average person like us, no one would really notice the $4. Just like for a billionaire, none of them would notice overpayment on something that really doesn't affect their wealth. But does it make it right to overpay for that gum that much? No. Would you generally like to pay $5 for a pack of gum? NO.

You're agreeing that your gum analogy is stupid. Perfect.
Q:"Does it make it right to overpay"
A:"Who cares"

Something's worth is determined by how much someone is willing to pay for it...if it sold for 550 mill then it's worth 550 mill. As for whether it's a good investment....they know, you don't.

I'm fine with $550 million...seems good. A pro franchise is a license to print money if done right

What the hell are you blabbering about? What do you mean a pro franchise is a license to print money? You realize printing money can only be done by the Federal Reserve and printing money causes inflation? It's illegal by anyone else.

And ok I get the whole fair value valuation but if I bought a blank piece of paper off you for $18 million, are blank pieces of paper now worth $18 million because that is what someone was willing to pay? No. It doesn't work like that.

You have absolutely zero understanding of economics.

I'm going to ignore your first paragraph because it's obvious trolling.

Your second paragraph is less trolling, more stupidity. Quit using stupid examples to back up your stupid opinions. The gum analogy was (Please Use More Appropriate Word) so you decide to use the paper analogy? Are you serious?

As for the teams worth, thats determined by professionals...not you. If they decided it was worth it, than it was worth it. I'm sure several of the other 8 bids were reasonably close to $550.

Now take your $5 dollar gum and $18 million dollar piece of paper and GTFO

[Knicks Universe]

You're agreeing that your gum analogy is stupid. Perfect.
Q:"Does it make it right to overpay"
A:"Who cares"

Something's worth is determined by how much someone is willing to pay for it...if it sold for 550 mill then it's worth 550 mill. As for whether it's a good investment....they know, you don't.

I'm fine with $550 million...seems good. A pro franchise is a license to print money if done right

What the hell are you blabbering about? What do you mean a pro franchise is a license to print money? You realize printing money can only be done by the Federal Reserve and printing money causes inflation? It's illegal by anyone else.

And ok I get the whole fair value valuation but if I bought a blank piece of paper off you for $18 million, are blank pieces of paper now worth $18 million because that is what someone was willing to pay? No. It doesn't work like that.

You have absolutely zero understanding of economics.

I'm going to ignore your first paragraph because it's obvious trolling.

Your second paragraph is less trolling, more stupidity. Quit using stupid examples to back up your stupid opinions. The gum analogy was (Please Use More Appropriate Word) so you decide to use the paper analogy? Are you serious?

As for the teams worth, thats determined by professionals...not you. If they decided it was worth it, than it was worth it. I'm sure several of the other 8 bids were reasonably close to $550.

Now take your $5 dollar gum and $18 million dollar piece of paper and GTFO

[cyrusdm]

The exchange rate is a huge part. Canada revenues would be in CAD$ while salary expenses would be in USD$ which is worth much more.

The US dollar is not worth much more than Canadian...it is sometimes on par, sometimes Canadian is worth more...usually the US dollar is 3 cents to 5 cents more valuable. So I'll give you a 5% difference. That's not a deal breaker and is more than made up for by having a monopoly over half of Canada and being able to pull from Seattle too.

They, like the Raptors, can't survive sustainably with that exchange rate.

Raptors can't survive? Some of the highest ticket prices yet still sold out....incredible corporate sponsorship and the 4th largest metropolitan area in North America....oh ya, they're really struggling.
The Raptors were found to be the 10th most valuable franchise, bringing in $138 million a year.


You're just mad that the Raptors are a far far far better team than the Knicks...this year and in the foreseeable future.

Enjoy the playoffs bud.

[cyrusdm]

I'm a troll

[Knicks Universe]

I'm a troll

Nice try genius.

[jizzme]

I'm a troll

Nice try genius.

hey look its little baby ret*rd

[Knicks Universe]

Nice try genius.

hey look its little baby ret*rd

Hey look your mom let you back on the internet again right before bedtime.

[jizzme]

Nice try genius.

hey look its little baby ret*rd

Hey look your mom let you back on the internet again right before bedtime.

whatever you say, little baby ret*rd

[slicedbread2]

I'm pretty sure the bucks are relocating to another city within the next decade. These hedge fund guys are ruthless - they probably overpaid for the team and made a promise to kohl to keep the team in Milwaukee but with a very attainable out clause. The out clause probably involves the bucks being able to sustain a limit in operating losses after ownership transfer and a target figure for the amount of public funding that must be provided by city of milwaukee to build a mandatory new arena. If both don't happen - than the ownership group likely pays a huge relocation penalty to the city but can move the team to a bigger market say seattle or san diego. This is a mirror image of what happened to the sonics when howard shultz sold the team to clay bennet.

Huge financial losses + No new arena + Relocation Penalty = New Team, New City

The financial losses can be blown up with dirty investment tactics like absorbing bad contracts to raise payroll costs and raising ticket prices for a team already lacking fan engagement to dissuade fans from coming to games. This has been done before in the sports industry. It's dirty but it works.

i would like to see Seattle retain it's spot. But I think it is stupid that Silver just doesn't allow every city who wants a NBA to have one, assuming they can provide their own stadium and ownership group willing to pay NBA for one.

Bucks don't deserve to lose a team, but there are better markets, and more hungry fans, with potentially much better management. If Seattle is the city, that means Northwest will have one added making it six, and they will have to find a way to fix the division for Central, maybe give Chicago a second team.

1. No way in hell will Reinsdorf allow a second team to compete with him for revenue. The NBA would not want to piss off one of the most valuable franchises in the league and they'd be crazy to go for it.

2. Seattle would be the ideal landing spot that the NBA uses to threaten teams to pay to play like the way the NFL uses Los Angeles. I think after the fiasco involving Seattle which sort of exposed the NBA and professional sports and general and proved to be a PR disaster, I highly doubt the NBA would want to go through another nightmare regarding that situation. See: Sacramento.

3. I think the NBA will make sure the Bucks are gift-wrapped a great player in the draft with the first overall pick the way that the now Pelicans were given for Anthony Davis when the guy who owns the Saints bought NOLA. If you want to bring in guys with deep pockets, getting them a guy to build around would be vital and the NBA will pull all the stops to do so.

4. I will admit this could be worrisome especially if you are Milwaukee knowing that the new ownership group are a bunch of hedge fund managers, but maybe if they play their cards right, this investment can turn out well. Obviously they'd rather be elsewhere, but I doubt that they take the PR nightmare for now.

[dkjjr]

hey look its little baby ret*rd

Hey look your mom let you back on the internet again right before bedtime.

whatever you say, little baby ret*rd

You need to work on your comebacks.

[SHFT]

Leave the poor man be...his team is in shambles.

[jizzme]

Hey look your mom let you back on the internet again right before bedtime.

whatever you say, little baby ret*rd

You need to work on your comebacks.

do i need to comeback?

[RaptorRed]

You're agreeing that your gum analogy is stupid. Perfect.
Q:"Does it make it right to overpay"
A:"Who cares"

Something's worth is determined by how much someone is willing to pay for it...if it sold for 550 mill then it's worth 550 mill. As for whether it's a good investment....they know, you don't.

I'm fine with $550 million...seems good. A pro franchise is a license to print money if done right

What the hell are you blabbering about? What do you mean a pro franchise is a license to print money? You realize printing money can only be done by the Federal Reserve and printing money causes inflation? It's illegal by anyone else.

And ok I get the whole fair value valuation but if I bought a blank piece of paper off you for $18 million, are blank pieces of paper now worth $18 million because that is what someone was willing to pay? No. It doesn't work like that.

You have absolutely zero understanding of economics.

I'm going to ignore your first paragraph because it's obvious trolling.

Your second paragraph is less trolling, more stupidity. Quit using stupid examples to back up your stupid opinions. The gum analogy was (Please Use More Appropriate Word) so you decide to use the paper analogy? Are you serious?

As for the teams worth, thats determined by professionals...not you. If they decided it was worth it, than it was worth it. I'm sure several of the other 8 bids were reasonably close to $550.

Now take your $5 dollar gum and $18 million dollar piece of paper and GTFO

There's actually no point in replying to that idiot. It's like talking to a wall. He will ignore your logic and continue with his idiotic points supported by hilarious analogies.

The funniest thing is , he claims to be an investment banker on Wall Street.

[JazzMatt13]

Whether or not they whore out teams to whoever, it is still unfair Seattle is still teamless. Most teams who lost their "team" have a new one, like New Orleans, Washington, Charlotte, Minnesota, and Brooklyn, however most had to get a new franchise. San Diego, Vancouver and Seattle are like the only ones who had a "NBA" team and don't have one now, also Kansas City is part of that group! I personally think all 3 American cities should get teams, it would just be a matter of getting 3 new teams in East to make it 6 teams per division. Kentucky, Mississippi, and Virginia could get teams.

[RandyBreuer]

Suck on that Seattle
Seriously though, Would like to see Seattle get an expansion team in the west and Louisville get one for the east. Kentucky should have one, they would be a free agent destination with the UK and LVille guys, and they would pull fans from Cincy as well.

[RxOxP]

How was this overpaying???

[RxOxP]

Vancouver had already had a team and they moved because they had no support. Why would they put a team there again?

Again, you're talking out of your ass.
Average attendance from 1995-2000

Vancouver - 15,703
new jersey - 15,888

And that includes the final 2 years of the Grizz where fans stopped coming out because they knew the team was leaving.

The Grizz didn't fail for lack of support...they failed because the owners didn't have deep pockets + the economy went in the **** + there was a lockout that also hurt finances.

It would be FAR better to relocate a team to Vancouver than to put one back in Jersey or anywhere else around New York.

While I now see that New Jersey may not be the best place to go, it is by far a better option for the league economically than putting ANOTHER team in Canada.

The state of New York has a 4% higher tax rate than Canada does and the USA is actually in debt to several other countries. Health care is free in Canada and our government offers a lot more financial support on all levels. Do some research next time before you fart on the keyboard.

[Matches Malone]

they got it for cheap.

teams will be sold for billions in the next 10 years...

If they move the team yes. If it stays in Milwaukee, no.

This shows your ignorance. Most people thought the Bucks would be sold for 300, maybe 400 million at MOST. The fact that they ended up selling for 550 million shows that the value of an NBA team will go up NO MATTER WHERE THEY ARE LOCATED!!! What don't you understand about that? The commissioner is not going to allow any franchise to drop in price sale. 550 million is probably the lowest a team will sell for moving forward no matter what team that is. Add on top of everything the possibility and more than likely eventual arrival of a new arena, that value will be much higher in 10 year IN MILWAUKEE!