I would think sports franchises don't make money consistently, per se, but the value of the team goes up a lot and then when sold that is where the money is realized.
Depends on your operating margins. For example, if you buy a team for 200 million dollars, consistently lose 10 million a year for 20 years and then sell the team for 350 million that's not exactly much of an investment.
I dunno. I think with today's revenues coming from TV deals and similar agreements, I don't know how most teams in the big three major sports wouldn't be profitable these days. Even the poor teams are getting big chunks of revenue-sharing.
According for Forbes Magazine, the Blazers have lost about $10M/season for the past 10 or so, except for 2010 when they had a $10M profit. Their expenses appear to be 2x the players' salaries. What that money is spent on is really important, too. During the last CBA negotiations (and lockout), the league claimed the teams as a whole lost $300M the previous season. Forbes values the Blazers at $450M. The team was last sold (to Paul Allen) for $70M. See: http://www.forbes.com/teams/portland-trail-blazers/
Good point. Even if not leaving town, new owner will not want a big payroll if the organization is run poorly and losing money.
http://www.youtube.com/watch?v=v_0di2IL440[video=youtube;v_0di2IL440]http://www.youtube.com/watch?v=v_0di2IL440[/video]
True, but you get write-offs. I read once that team owners depreciate players on their taxes. Sort of like they were race horses.
I blame PapaG always putting down his philanthropy and being "The Accidental Billionaire." Well, we won't have to read PapaG anymore.
It "loses" $10M because of accounting tricks. 1) Company expenses for the owner and relatives to live an extravagant lifestyle. 2) The team's big expenses, their vendors and suppliers, buy stuff from the owner's other companies. In exchange for making money from the team, they scratch his back by giving business to his other businesses. Paul Allen may not play that game, I don't know, but for most people worth over $50M, that's how it's done.
HCP wants everyone to know that he's pissed off that the thread is no longer about him. Seriously, how do we know he didn't kill himself? Does anyone know anyone living with him to ask?
Personally I think he left because he knew how much shit he was going to get for his prediction that Phoenix wouldn't win more than 8 games this year. I am pissed he is gone.
A female friend who skins rabbits for a hobby told me she saw his traps laid out in the woods. So it appears HCP has abandoned civilization.
I haven't read the entire thread, and I don't usually participate in "farewell" posts because it's usually someone who had a meltdown and wants us all to beg him to reconsider, but in this case, I will actually miss this particular poster. I will miss his insights into the players and other personalities associated with the team. His connection to the players and the team made me feel closer to them, that they are real people, not just numbers on jerseys. I don't ever recall him posting anything that crossed any lines about the players or the organization. If he was told to cease and desist by the organization, I suspect it was a prophylactic measure to prevent any possibility he could ever post anything that would damage the organization in some way. However, if they really want to maximize profits they should be doing everything they can to connect with their fan base, not alienate them and put up barriers. First that ridiculous Comcast deal that has alienated thousands of fans, and now removing a popular poster (assuming the team made him stop posting here) from a very large and active forum dedicated to the team. Increasing ticket prices, concession prices, etc. will only work if people actually are willing to pay those prices. If fans feel personally connected to the team and think of them fondly as Rip City, they will be willing to open their wallets and support the team they love. If the fan base feels like organization is cold and distant and only cares about how much money they can extract from each fan, they will think of them as Rip OfF City and lose their desire to support the team. Look at how many long time fans they've already lost thanks to that incredibly short sighted and ill conceived Comcast deal. I know it's early in the season, but they didn't sell out a Friday night home game last night. Butts in seats, buying overpriced food, beer and team merchandise is the best way to maximize profits. I'm not saying losing HCP's participation is going to bankrupt the team, but losing that personal connection to the team is a step in the wrong direction IMHO. BNM
If someone with the Blazers is responsible for The HCP receiving a cease and desist order barring him from on-line posting, that person's mother should have used a "prophylactic measure". Preferably an abortion.
