Should Jazz intentionally exceed cap?

[finnegan]

Why?

[finnegan]

I once bought a building lot, and it appreciated a fair amount. I moved out of State for a while, and a guy called me up offering to buy. He had approached me a few times before, but this time I was actually open to selling it, because I had found another property that I was interested in. However, I told the guy that I had to do some home work, because there were a couple of mandatory conditions, before I would sell. One of those conditions is that the transaction had to be eligible for a 1031 exchange, so that I could roll the proceeds into the other property.

The guy didn't have cash, so he wanted to make payments. After doing some research, I found out that an installment sale (i.e., payments instead of 100% cash) disqualifies the transaction for a 1031 exchange.

One other note that you need to know, is that this guy made most of his financial decisions with his gut. The benefit is that he owned a business. Sometimes he made good decisions and sometimes bad. He had a high net worth, but a tremendous amount of debt. Me on the other hand, I make all of my decisions with my mind. The upside is that they are generally well informed and rarely over extended, the downside is that I was a little too conservative to dive into business opportunities, that in the end would likely have been very profitable.

So back to the story. When I told him that I couldn't sell the property under the terms he specified, he absolutely flipped out. He started telling people that I was dishonest and lied to him, and it went on for about a year. He somehow was completely blinded to the conditions which I specified in our first and subsequent conversations. He honestly believed that I was a bad and terrible person. Since it was an emotional motivation to purchase the property (he didn't need it as he already owned several others), he had a strong emotional reaction when it didn't happen.

I am not sure why the information that I am sharing bothers you so much DWill_daShizzle, but maybe instead of being so annoyed by my complaints about the Jazz's failure to manage their risk, you can instead recognize that although a person may have a 100% different point of view of the world than you, and they evaluate and process information differently, that it doesn't necessarily make them wrong or evil.

[BarneyGumble]

I once bought a building lot, and it appreciated a fair amount. I moved out of State for a while, and a guy called me up offering to buy. He had approached me a few times before, but this time I was actually open to selling it, because I had found another property that I was interested in. However, I told the guy that I had to do some home work, because there were a couple of mandatory conditions, before I would sell. One of those conditions is that the transaction had to be eligible for a 1031 exchange, so that I could roll the proceeds into the other property.

The guy didn't have cash, so he wanted to make payments. After doing some research, I found out that an installment sale (i.e., payments instead of 100% cash) disqualifies the transaction for a 1031 exchange.

One other note that you need to know, is that this guy made most of his financial decisions with his gut. The benefit is that he owned a business. Sometimes he made good decisions and sometimes bad. He had a high net worth, but a tremendous amount of debt. Me on the other hand, I make all of my decisions with my mind. The upside is that they are generally well informed and rarely over extended, the downside is that I was a little too conservative to dive into business opportunities, that in the end would likely have been very profitable.

So back to the story. When I told him that I couldn't sell the property under the terms he specified, he absolutely flipped out. He started telling people that I was dishonest and lied to him, and it went on for about a year. He somehow was completely blinded to the conditions which I specified in our first and subsequent conversations. He honestly believed that I was a bad and terrible person. Since it was an emotional motivation to purchase the property (he didn't need it as he already owned several others), he had a strong emotional reaction when it didn't happen.

I am not sure why the information that I am sharing bothers you so much DWill_daShizzle, but maybe instead of being so annoyed by my complaints about the Jazz's failure to manage their risk, you can instead recognize that although a person may have a 100% different point of view of the world than you, and they evaluate and process information differently, that it doesn't necessarily make them wrong or evil.

So do you want a cookie?

I think the fact that nobody is answering you or cares about this thread should tell you the reason "why" I suggested you stop speculating on the future financial decisions of the league. I dont care how many buildings you've bought or how much investment research you've done. Anyone who spends millions of dollars hoping that a bunch of rules changes will help them out later is just begging to end up broke and laughed at.

[HammerDunk]

Holy stupid thread alert batman!

[GP]

Don't the jazz have the 6th highest payroll? If so you would think that they would be hit by the hard cap more than other teams. However, I don't think the players will ever ok a hard cap, they stand to lose too much money. I personally, would like it if they shortened the season to around 60 games. I love basketball, but I think the season is too long. Shorter season, less injuries, individual games mean more. Of course this also isn't ever going to happen.

[finnegan]

Anyone who spends millions of dollars hoping that a bunch of rules changes will help them out later is just begging to end up broke and laughed at.

I will repeat. Not all risk is bad, and not all risk is extreme.

Risk has benefited both Miami and Lakers, but has been to the detriment of the Knicks. The difference -- knowing when to take a chance!

[finnegan]

Don't the jazz have the 6th highest payroll? If so you would think that they would be hit by the hard cap more than other teams. However, I don't think the players will ever ok a hard cap, they stand to lose too much money.

It will be interesting to see how this plays out. At the end of the day, the owners can go a long time without generating any income from their NBA franchises, but for players nothing else come close to their NBA income, except those few with major endorsements.

The bottom line will be how much the salaries would have to be rolled back. Would most players take a 10%-15% pay reduction to keep playing, considering the economy? I'm thinking yes. Would they take 50% pay cuts? Probably not.

Considering most other industries have been affected by the economy, a hard cap doesn't seem entirely unreasonable. If the economy really went bad, teams should be able to have a hard cap and be able to adjust payroll downward, just like every other corporation in America.

I assume the cap will go up as annual NBA revenue goes up.

[BarneyGumble]

[finnegan]

Is that Phoenix, LA, or Miami?