Black Mamba
Member
giri said:You forget, Detroit is up for sale, Charloette just got sold, Wariors just got sold, New Orleans can't find a buyer (in NO). There's plenty of these guys who have gotten out of it purely because it's a loss. Kings are moving and rebranding. That's 5 teams. And OKC Just moved/got sold 2 or 3 years ago.
Then you have guys like sterling that turns players over because he won't pay them, because that would drive the clippers into a loss making situation.
So a lot of owners ARE getting out of the whole thing.
The lakers are the exception to the rule, and the knicks (god knows how) seem to be also, charging the highest ticket prices in the league. The run on the large market theory, and reap the rewards of it. There's only one team in the league with a $3b tv rights deal, not 30.
Did you see how much Charlotte and GSW got sold? They are making money. My point was that these franchises wouldn't be able to sell at these prices if they weren't making money.
I totally believe Detroit is one of the few teams losing money because that city is pretty messed up right now. And NOH is defintely not making money. I'm not claiming there are no teams losing money, but I don't believe it's widespread or close to $300 million.
Sterling doesn't turn players over because of that. He does it because he's risk averse. If the Clippers were a contender, they'd make a lot of money even with a high payroll. This is Los Angeles. We pay the McCourts more than anyone to see them put out the Dodgers despite a lower payroll than what it should be. But if Sterling did try to contend, he runs the risk of failing and getting the high payroll and making less money (but still making money!) than sucking and drawing fans in with false hope.
And I know Lakers are an exception, but it's still $300 million a year. Whatever it is for other teams, it's still high. That's my point. Very few teams are losing money. The reality is that if teams were losing money we wouldn't be seeing these terrible contracts and sales of franchises for many more times their purchase value (adjusted for inflation).
90% of the time when a team says it is "losing money," what it's really saying is "I'm making less profit this year." They fudge the books around to make it look like a loss. What this CBA is truly about is the owners want to protect themselves from themselves to reduce risk so when bad contracts happen, they don't diminish growth/earning potential for too long.