Glen Taylor Retains Firm To Sell Timberwolves

[RealGM Wiretap]

Glen Taylor has retained The Raine Group to sell the Minnesota Timberwolves.

Taylor bought the team for approximately $88 million in 1995.

Taylor is seeking at least $1.2 billion for the franchise that Forbes says is worth $1.38 billion.

Via Scott Soshnick/Sportico

[RipCityKJ]

KG get out the check book

[Michael Jackson]

KG get out the check book

May not be the best time to buy. He also doesn’t have the capital to buy the team and handle operating expenses, so he would need an investment group. Now it might end up being a steal to buy them now, yet for the first time in decades buying a team might actually be a risky investment because of Covid. I am also a firm believer that Balmer ended up creating a bubble of NBA team values when he overpaid for the Clippers.

[arasu]

KG get out the check book

May not be the best time to buy. He also doesn’t have the capital to buy the team and handle operating expenses, so he would need an investment group. Now it might end up being a steal to buy them now, yet for the first time in decades buying a team might actually be a risky investment because of Covid. I am also a firm believer that Balmer ended up creating a bubble of NBA team values when he overpaid for the Clippers.

Notice the markets going up, even while most countries registered negative growth? Central banks are printing money, which makes asset bubbles inflate like crazy. If the NBA can prove itself in its own kind of restart "bubble", then it will be a prime place for billionaires to stash their cash. Ballmer will look like a super genius if team evaluations jump into the $100 billion range over the next 10 years. If KG can get in at the ground floor, he'll be in a good position as well. It's time for the NBA to have more player involvement on the ownership side, and now could be the best time to get in. As the old investment saying goes, "Buy when there’s blood in the streets".

[DoctorDunc]

Sports teams have had a huge run that is long term unsustainable. they are going to struggle for cashflow for the foreseeable future and the current owners may want to sell before the capital gains tax rate goes up. Good time to sell while people still believe in the asset. Good luck KG but be careful.

[mastermixer]

KG get out the check book

May not be the best time to buy. He also doesn’t have the capital to buy the team and handle operating expenses, so he would need an investment group. Now it might end up being a steal to buy them now, yet for the first time in decades buying a team might actually be a risky investment because of Covid. I am also a firm believer that Balmer ended up creating a bubble of NBA team values when he overpaid for the Clippers.

KG wouldn’t own more than 5% of the team, optimistically. They put together investment groups but like to have a KG as the face of it for good will.

[jlokine]

looks like someone is looking to cash out and leave minneapolis..

[Shaka_Zulu]

Finally, as Wolves fan, I really hope this happens.

[Dr Huge Pecs]

I'll start the bidding at $3...

[Dr Huge Pecs]

Cut that estimated worth in half...at least. The nba is doomed.

[Michael Jackson]

KG get out the check book

May not be the best time to buy. He also doesn’t have the capital to buy the team and handle operating expenses, so he would need an investment group. Now it might end up being a steal to buy them now, yet for the first time in decades buying a team might actually be a risky investment because of Covid. I am also a firm believer that Balmer ended up creating a bubble of NBA team values when he overpaid for the Clippers.

Notice the markets going up, even while most countries registered negative growth? Central banks are printing money, which makes asset bubbles inflate like crazy. If the NBA can prove itself in its own kind of restart "bubble", then it will be a prime place for billionaires to stash their cash. Ballmer will look like a super genius if team evaluations jump into the $100 billion range over the next 10 years. If KG can get in at the ground floor, he'll be in a good position as well. It's time for the NBA to have more player involvement on the ownership side, and now could be the best time to get in. As the old investment saying goes, "Buy when there’s blood in the streets".

While I u defat and your theory how will it get there? Revenue is down and will continue to be. China’s NBA money is drying up. The next TV deal will not be as lucrative as there are sooooo many viewing options. Players are going to demand larger profit shares at the next CBA. It might turn and go gangbusters but the outlook isn’t great at the moment. You would need huge capitol to withstand the eventual turn around, which a Ballmer has but not everyone does. Tim Fertitta for instance was struggling with cash flow before Covid. He was also many times more wealthy than the generations that invested in teams earlier (say Reinsdorf or Dr Buss). It is a super huge ticket to buy in now. It is more in the range of oil shiek money who buys teams as trophies than it is for those who are savvy businessmen.

[Cookin Baskets]

$88 Mill to 1.2 Bill is a mindblowing profit. Damn Dude, like a Billion dollar plus profit.

[deeps6x]

Someone in Vancouver needs to buy them.

[deeps6x]

$88 Mill to 1.2 Bill is a mindblowing profit. Damn Dude, like a Billion dollar plus profit.

It is an 11% annualized return, for 25 years. Power of compounding gains over time. Its ok, but in 1995 dollars it is probably less than 4% per year.

[RaptorHusky]

$88 Mill to 1.2 Bill is a mindblowing profit. Damn Dude, like a Billion dollar plus profit.

It is an 11% annualized return, for 25 years. Power of compounding gains over time. Its ok, but in 1995 dollars it is probably less than 4% per year.

Still quite OK, don't you think?

[ontnut]

$88 Mill to 1.2 Bill is a mindblowing profit. Damn Dude, like a Billion dollar plus profit.

It is an 11% annualized return, for 25 years. Power of compounding gains over time. Its ok, but in 1995 dollars it is probably less than 4% per year.

That's just sale value for the Wolves, I'm sure they made money along the way to line their pockets. That return rate beats just about every investment out there since the S&P 500 annualized return is around 10% historically. From 1995 til now, the SPY has gone from roughly $40 to $320, so 8x initial value. The Wolves have gone up 13.63x assuming a sale of $1.2 billion. That's 70% better than investing in the S&P 500 during the exact same timeframe. I mean...that's pretty damn good.

[Wolves_Fan]

As a frustrated wolves fan. Thank you GOD!

[arasu]

May not be the best time to buy. He also doesn’t have the capital to buy the team and handle operating expenses, so he would need an investment group. Now it might end up being a steal to buy them now, yet for the first time in decades buying a team might actually be a risky investment because of Covid. I am also a firm believer that Balmer ended up creating a bubble of NBA team values when he overpaid for the Clippers.

Notice the markets going up, even while most countries registered negative growth? Central banks are printing money, which makes asset bubbles inflate like crazy. If the NBA can prove itself in its own kind of restart "bubble", then it will be a prime place for billionaires to stash their cash. Ballmer will look like a super genius if team evaluations jump into the $100 billion range over the next 10 years. If KG can get in at the ground floor, he'll be in a good position as well. It's time for the NBA to have more player involvement on the ownership side, and now could be the best time to get in. As the old investment saying goes, "Buy when there’s blood in the streets".

While I u defat and your theory how will it get there? Revenue is down and will continue to be. China’s NBA money is drying up. The next TV deal will not be as lucrative as there are sooooo many viewing options. Players are going to demand larger profit shares at the next CBA. It might turn and go gangbusters but the outlook isn’t great at the moment. You would need huge capitol to withstand the eventual turn around, which a Ballmer has but not everyone does. Tim Fertitta for instance was struggling with cash flow before Covid. He was also many times more wealthy than the generations that invested in teams earlier (say Reinsdorf or Dr Buss). It is a super huge ticket to buy in now. It is more in the range of oil shiek money who buys teams as trophies than it is for those who are savvy businessmen.

In many respects teams have always been trophies. As for team evaluations going up, it's never been solely about revenue. It's been about wealthy people needing a place to stash their money that won't depreciate. Since governments keep printing money, excess money will continue to be out there. And as long as there are eyeballs watching and supply is kept artificially low (no expansion franchises) and monopolized (no serious competing leagues), teams will have massive value as a form of investment.

In your example, the older owners have been continuously outbid by wealthier and wealthier owners as values escalate, and ability to withstand losses jumps into higher wealth brackets. We can compare this gain without sufficient revenue concept to climbing Vancouver real estate values. Many investors buy in and keep the buildings empty. They have zero revenue from the properties, and they take technical losses in the form of taxes, upkeep, and such, that must be written off, but the values keep escalating. So long as they can afford these losses, they hang on, making up for the losses and much more on the back end. If they reach a point where the numbers are too much, they sell, and take massive profit, just like NBA owners have been doing for decades. While there likely will be corrections along the way, and a major change in the financial environment could stop this escalation dead in its tracks, for now, the economic environment is pro-capital bubbles. These bubbles prevent general inflation by hiding within certain assets (like stocks or real estate), yet the money printing also forces the constant money movement that can keep an economy going. I don't think it can last forever, but possibly years or decades longer. And we've seen billionaire investor groups take over this space, as more and more billionaires rise up in the economy. We don't need sheikhs for this to continue.