For anyone interested about the franchise's finances
Posted: Fri Feb 28, 2014 4:50 pm
http://finance.yahoo.com/news/michael-j ... 00093.html
I'd say that we are doing pretty well. And it was a no-brainer for Jordan to buy the franchise, and he'll be a huge benefactor several years from now.
But from a business sense, Jordan might hit another game-winner with his ownership of Charlotte.
Jordan became majority owner of the Bobcats in 2010 in a deal that valued the team at just $175 million. Jordan also agreed to put up cash to cover operating losses the team was piling up. But after five straight years of heavy losses, the Bobcats turned an operating profit (earnings before interest, taxes and depreciation) of $7 million last season. The team benefits from the new collective bargaining agreement that reduced the players’ cut of revenues from 57% to 50%. The CBA also tripled the revenue sharing going from the NBA’s haves to have-nots. Charlotte is one of the biggest beneficiaries with revenue sharing that should reach $18 million a year.
NBA teams are also on the verge of a massive cash infusion with new TV deals set to be negotiated this year. The current pacts with ESPN/ABC and TNT are worth $930 million annually and insiders think the next round of agreements will be worth at least twice as much. The value of the Bobcats, which Jordan owns 80% of, was up 30% over the last year to $410 million in Forbes' latest look at the business of basketball. Mark Cuban thinks every NBA team will be worth $1 billion within 10 years.
I'd say that we are doing pretty well. And it was a no-brainer for Jordan to buy the franchise, and he'll be a huge benefactor several years from now.