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Do you believe NBA franchise valuations are currently a bubble?
Posted: Fri May 30, 2014 7:04 pm
by RealGM Polls
1. Yes
2. No
Re: Do you believe NBA franchise valuations are currently a
Posted: Fri May 30, 2014 11:26 pm
by masgi
Simplistic question and terminology. A bigger market franchise, regardless of said "bubble", will always trump the value of a smaller market team. But at the same time, the value of small market franchises will continue to rise, because as many people have pointed out, owning a sports team is not only a business investment, but also entrance into a very exclusive club. Only 30 people can own NBA basketball teams. Entering into said club, can create all sorts of business advantages and relationships down the road.
Re: Do you believe NBA franchise valuations are currently a
Posted: Sun Jun 1, 2014 12:55 am
by Themistocles
No. Simple economics: Supply is low, and demand is high, so teams are valuable. Plus NBA teams will make you a lot of money, so it's also a good long-term investment. Don't forget that Donald Sterling bought the Clippers for 12 million back in 1981 (30 mil in today's money). Even with inflation, that's a return of over 6,000%.