Alex Rodriguez having issues buying the Timberwolves

[dhsilv2]

Not surprising. A-Rod and JLo were a power couple. A-rod by himself is no nearly as powerful.

It’s true. J Lo is worth more than Arod and Ben Affleck combined. She also brings status more than arod can imagine

Wow...I'll never understand music and how these people make so much money. Or why so many people know them...

[sip]

He probably lost a ton in the market this year.

He has a massive real estate portfolio so the vast majority of his wealth is not liquid. I think most of it is in Miami which is a market I'm not overly familiar with but I believe it is cooling but still a really solid market.

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[bstein14]

JLO is worth $400 million and ARod is worth about $350 million. ARod has enough to buy about half the Minnesota Wild but not the TWolves.

[old skool]

This is why if you're Lebron do you really want to put your money into owning a majority(which is probably what he'll want) in a major sports franchise? Of course he has more money than A-Rod but to put in at minimum 200 million liquid is a lot of dough plus these team valuations are probably only going to increase over time

With the revenue sharing and changed BRI split in the 2011 CBA it is damn near impossible to lose money on an NBA team. Which is a big reason the valuations have shot up the last decade, I doubt that changes any time soon, and there are not many other investments you can make that you can say that.

I would not be surprised if small market teams still routinely experience annual negative cash flow. Teams that go into the luxury tax are paying more than their share of the team share of BRI. Financially they do great in the long run when they sell, but in the meantime, they have to cover their cash shortfalls. (Yes, the NBA has a fund that makes long term loans available to franchises that have cash flow issues, but they still need the initial capitalization to buy a team at market value.)

I think changes to the BRI split in the 2011 CBA has less impact on profitability than the explosive growth in TV revenue, but does not guarantee that every franchise turns an operating profit every year.

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[Ryoga Hibiki]

This is why if you're Lebron do you really want to put your money into owning a majority(which is probably what he'll want) in a major sports franchise? Of course he has more money than A-Rod but to put in at minimum 200 million liquid is a lot of dough plus these team valuations are probably only going to increase over time

With the revenue sharing and changed BRI split in the 2011 CBA it is damn near impossible to lose money on an NBA team. Which is a big reason the valuations have shot up the last decade, I doubt that changes any time soon, and there are not many other investments you can make that you can say that.

you might not lose money in the pnl but the investment is enormous and, at some point, team valuation might show to be overpriced.

___
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[The Rebel]

This is why if you're Lebron do you really want to put your money into owning a majority(which is probably what he'll want) in a major sports franchise? Of course he has more money than A-Rod but to put in at minimum 200 million liquid is a lot of dough plus these team valuations are probably only going to increase over time

With the revenue sharing and changed BRI split in the 2011 CBA it is damn near impossible to lose money on an NBA team. Which is a big reason the valuations have shot up the last decade, I doubt that changes any time soon, and there are not many other investments you can make that you can say that.

I would not be surprised if small market teams still routinely experience annual negative cash flow. Teams that go into the luxury tax are paying more than their share of the team share of BRI. Financially they do great in the long run when they sell, but in the meantime, they have to cover their cash shortfalls. (Yes, the NBA has a fund that makes long term loans available to franchises that have cash flow issues, but they still need the initial capitalization to buy a team at market value.)

I think changes to the BRI split in the 2011 CBA has less impact on profitability than the explosive growth in TV revenue, but does not guarantee that every franchise turns an operating profit every year.

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While the TV contract didn't hurt, you have to realize that the cut in BRI percentage amount by 6-8% turns out to be about $15-18 million a year, add to that the revenue share of local TV and radio money to ensure just that category of income covers the entire salary cap for every team, made it hard to lose money with an NBA team if you are even slightly fiscally responsible.

[old skool]

The nine year TV contract pays the NBA $2.7-billion annually. That is an average of $90-million per team per year. With a dozen teams posting revenues below $200-million, that national TV contract is a huge component of financial health league-wide and is considerably more significant than the increased share of BRI.

Forbes reports that in 2022 Golden State had Operating Income (losses) of -$44-million and Brooklyn at -$80-million. (Operating Income is earnings before interest, taxes, depreciation and amortization.)

They report the other 28 teams all had positive Operating Incomes, but the following teams had smallish Operating Incomes that could easily result in negative cash flows when interest payments are added:

Toronto - $2.1-million
Indiana - $4.1-million
Cleveland - $11-million
Milwaukee - $11-million
Memphis - $12-million
Philadelphia - $13-million
Denver - $15-million
Phoenix - $15-million

I think it is likely that the NBA wants to ensure that owners entering the league are not saddled with burdensome interest obligations day one, especially in a small market like Minnesota.

[Lalouie]

can't go to his left?

i always said he was nothing without jeter

[JoseRizal]

The Gobert trade effect...

[Antinomy]

We don’t need another Tillman in this league.

[andyhop]

This is why if you're Lebron do you really want to put your money into owning a majority(which is probably what he'll want) in a major sports franchise? Of course he has more money than A-Rod but to put in at minimum 200 million liquid is a lot of dough plus these team valuations are probably only going to increase over time

I doubt he is going to try and buy a majority stake in a team , he will be a minority partner with FSG

[Mavrelous]

The nine year TV contract pays the NBA $2.7-billion annually. That is an average of $90-million per team per year. With a dozen teams posting revenues below $200-million, that national TV contract is a huge component of financial health league-wide and is considerably more significant than the increased share of BRI.

Forbes reports that in 2022 Golden State had Operating Income (losses) of -$44-million and Brooklyn at -$80-million. (Operating Income is earnings before interest, taxes, depreciation and amortization.)

They report the other 28 teams all had positive Operating Incomes, but the following teams had smallish Operating Incomes that could easily result in negative cash flows when interest payments are added:

Toronto - $2.1-million
Indiana - $4.1-million
Cleveland - $11-million
Milwaukee - $11-million
Memphis - $12-million
Philadelphia - $13-million
Denver - $15-million
Phoenix - $15-million

I think it is likely that the NBA wants to ensure that owners entering the league are not saddled with burdensome interest obligations day one, especially in a small market like Minnesota.

Clippers turned profit?

[LakersLegacy]

Do the Packers thing and sell stock in the team

[Long2_noD]

Maybe his shares should be diluted between him and Andy Roddick.

[CometGM]

It's not just ARod buying the Wolves. It's him and Marc Lore.
I'm sure this is just a click-bait and the deal will get done.
Gives the haters on this thread a chance to hate before the deal is completely finalized.
If Arod has to take a smaller percentage of the team, so be it. Marc Lore can make up the rest.

That's why they didn't state "Marc Lore having issues buying the Timberwolves."

They were supposed to be 50/50 owners, so Rodriguez turning into a minority owner would be a fairly significant development.

I don't know about significant in the sense that it would mean anything for the common basketball fan. Most people won't know it "was supposed to be" 50/50. ARod is a known star compared to Marc Lore and there is benefit for both of them to be partners, at whatever percentage, and the issue I have is that tweets like this make it seem like the deal might not get done at all.

[Colbinii]

can't go to his left?

i always said he was nothing without jeter

He was a better baseball player than Jeter for a majority of his prime...

[CometGM]

It's not just ARod buying the Wolves. It's him and Marc Lore.
I'm sure this is just a click-bait and the deal will get done.
Gives the haters on this thread a chance to hate before the deal is completely finalized.
If Arod has to take a smaller percentage of the team, so be it. Marc Lore can make up the rest.

Exactly who are the "haters" you speak of?

Maybe you and I have different definition of haters, but if you read the thread you'll see things like this:

He needs to cheat once again to be good at his job.

From A-Roid to A-Fraud...

[jokeboy86]

This is why if you're Lebron do you really want to put your money into owning a majority(which is probably what he'll want) in a major sports franchise? Of course he has more money than A-Rod but to put in at minimum 200 million liquid is a lot of dough plus these team valuations are probably only going to increase over time

I doubt he is going to try and buy a majority stake in a team , he will be a minority partner with FSG

I think for an NBA team he would want to be a majority stake holder. Maybe not now or shortly after his career is over but I could see him wanting this when he's older. Jordan and Lemieux are the standard that probably most ex-athletes with ownership goals may want to aspire(if they have the cash) to and I can't see Lebron being a partial NBA owner like some of the other recent guys especially since his net worth dwarfs most other ex-athletes/businessmen including Magic.

[CometGM]

It's not just ARod buying the Wolves. It's him and Marc Lore.
I'm sure this is just a click-bait and the deal will get done.
Gives the haters on this thread a chance to hate before the deal is completely finalized.
If Arod has to take a smaller percentage of the team, so be it. Marc Lore can make up the rest.

Article literally says it’s Arod that is the struggling to come up with funds, not Lore. Lore already covered for ARod in July and if it keeps occurring instead of a 50/50 split it may end up being that Arod is a minority stake holder under Lore.

It’s completely accurate to say Arod is struggling to buy the Wolves.

Obviously it's ARod that's "struggling", which is why I mentioned that Lore would cover the rest if needed. You're literally repeating what I said. My issue is with tweets like this which make it seem like the deal won't get done at all, which makes the "haters" come out of the woodworks. Maybe if it said something like, "ARod having issues coming up with his 50% share", "ARod might have to take minority stake in Timberwolves."

But you know, it draws clicks to say "ARod having issues buying Timberwolves". Slight difference makes a big difference.

[Klomp]

It's not just ARod buying the Wolves. It's him and Marc Lore.
I'm sure this is just a click-bait and the deal will get done.
Gives the haters on this thread a chance to hate before the deal is completely finalized.
If Arod has to take a smaller percentage of the team, so be it. Marc Lore can make up the rest.

Article literally says it’s Arod that is the struggling to come up with funds, not Lore. Lore already covered for ARod in July and if it keeps occurring instead of a 50/50 split it may end up being that Arod is a minority stake holder under Lore.

It’s completely accurate to say Arod is struggling to buy the Wolves.

Obviously it's ARod that's "struggling", which is why I mentioned that Lore would cover the rest if needed. You're literally repeating what I said. My issue is with tweets like this which make it seem like the deal won't get done at all, which makes the "haters" come out of the woodworks. Maybe if it said something like, "ARod having issues coming up with his 50% share", "ARod might have to take minority stake in Timberwolves."

But you know, it draws clicks to say "ARod having issues buying Timberwolves". Slight difference makes a big difference.

Correct. But it's the Post, so par for the course.

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