VanWest82 wrote:Hope the deal includes the real estate. Otherwise...yikes!
Edit: I predict these 4B+ sports franchise valuations are going to look terrible sooner rather than later (if not immediately). Using Forbes numbers (2019 Nets = ~50M NI) and an aggressive discounted cash flow analysis over ten years instead of five @ only 5% discount rate, Nets should be worth ~400M.
Perhaps you might argue that's an impractical valuation method because these franchises are really rare pieces of art and hold value beyond the financials. Sure, except there are ~2000 billionaires in the world. Let's assume that 5% are die hard NBA fans and want to own an NBA team regardless of supporting financials. So 100 potential owners, many of which wouldn't be able to come up with the full 4B, and many of which already own an NBA team. Where is the NBA going to get all these future "collectors"?
They don't need to have a full four billion - these are joint ventures. To become an NBA owner you just need a plurality not a majority I think.