Some of the statements and figures are inaccurate. Jordan owned ~30% of the stock and sold ~25% to another partner. I'm not sure what % of the team Snyder owned.
Precisely. The whole premise of the OP is invalid.
There are 4 typos and grammar mistakes in his short post:
1. "He just sold team for $6 billion" 2. "he made an avarege of $216.6 million per year" 3. "Michael Jordan bout the Hornets" 4. "My Princeton econ degree doesn't understnad that."
There is plenty of revenue to be had in TV advertising and marketing. Plus, every new owner thinks he is the second coming and hopes to bring home a trophy or two. There are no limits on vanity. Playing with a few zeros on the checkbook means nothing.
There are 4 typos and grammar mistakes in his short post:
1. "He just sold team for $6 billion" 2. "he made an avarege of $216.6 million per year" 3. "Michael Jordan bout the Hornets" 4. "My Princeton econ degree doesn't understnad that."
Trying to not be negative, but rojo asked for it. I appreciate that the brojos are so willing to demonstrate that not only do you not have to have brains and talent to go to an Ivy League, but once you go there and graduate, you can still have the brains of a donkey.
Next time you hear people complain that an asian kid with a 7.2 GPA and a 1700 SAT had to go to their safety school maybe don't direct anger toward black people or the two Native Americans that got into Harvard. Maybe you can consider that an order of magnitude more kids got in because they had rich parents or because their daddy used to paddle people's nuts with George Bush at Phillips Academy.
Snyder purchased the Redskins and Fed Ex field for $800 million in 1999. He just sold team for $6 billion, meaning he made an avarege of $216.6 million per year.
Michael Jordan bout the Hornets for $175 million in 2010 and just sold them for $3 billion, meaning he made an average of $217.7 million per year.
Can someone tell me why these teams, both of whom were absolutely awful from a performance standpoint, are worth so much?
The Hornets price blows my mind. The team a) sucks and b) the NBA is less popular than it was 13 years ago yet the team is worth WAY WAY more? My Princeton econ degree doesn't understnad that.
just wait until you see how much the NBA players are paid...
They earn way more than NFL players, but NBA is nowhere near as popular as the NFL.
Yeah, they play more games, but so do MLB players.
MLB is as popular as the NBA (not popular at all)
as to answer your question, it's probably money laundering, as most things sports-related
Go check the size of a NBA roster and the fact that the best players play like 70% of the game minutes and get back to us.
The answer to the original questions starts with the rather basic economic concept of scarcity, even my public high school taught me that. There are only 30 NBA franchises and they pretty much only become available for sale one at a time, so any mega-rich guy who wants to buy a team has to compete with other billionaires and groups of rich guys for it. Notice that the price is in the billions for non-marquee teams/markets, just imagine what Chicago or New York or LA would cost.
The professional sports leagues are very stable investments because, more than anything, people are buying into the league rather than an individual team. It also helps that they are fun investments for billionaires whose cold, black hearts can pretend they are men of the people, which they don't get by investing in IBM. They are pretty much guaranteed to be around for decades and, so long as the ocean doesn't swallow up Madison Square Garden, the Knicks will be around for another 50, 100 years. You can't say the same for most investments. The years of teams folding or pro leagues competing with the ABA, WHL, or USFL are long gone with TV deals and elite player scarcity raising the barriers to entry for competing leagues. And MLB franchise values have a helpful assist from the Supreme Court with its antitrust exemption (next time a baseball owner pleads poverty consider that their franchise value probably appreciated tens of millions of dollars just that year).
Finally, are we sure the NBA is less popular than years past? Basketball has exploded in popularity globally. China loves the NBA and more players are coming from Europe and Africa than ever before. Domestically, popularity is usually measured in TV ratings but fewer people watch TV than in years past. It seems to me that just as many people care about the NBA as 10, 20 years ago. It's not growing like F1 but I don't think it is ceding its cultural significance like baseball has.
Weighing in as a longtime and beleaguered Washington sports fan. Snyder is by far the worst owner in American pro sports, and I don't think it's particularly close. There are literally no positives to his approach. He has completely alienated the fan base, has put a poor product on the field for 23 years, has not invested in facilities or a new stadium, has not even been able to maximize profits to enrich himself. He's basically put himself in a spot where no one will finance a new stadium with/for him (which is a pretty hard position to get yourself into as an NFL owner, and in the very wealthy DC area), and neither DC, MD, or VA is willing to put a single cent into building a new stadium in their municipalities. Reports are also that he is in pretty poor financial shape, which is amazing when you consider he's owned what should be a cash cow for over two decades. It actually takes work to get people this pissed off at you, as well as to mismanage a franchise this badly.
The crazy thing is, the above is just a synopsis. It would literally take pages to list out all of the underhanded, sleazy, nasty, petty, or downright illegal things Snyder has done during his tenure.
The thing propping up broadcast and cable TV is sports, especially NFL, NBA, MLB. You should now figure out why all of track and field is worth less than one bad NBA team (I think it's because the track stars only compete a half dozen times a year, if that).
Rojoke do you really think wins/losses determine a teams financial value? The billionaire class all want to own a franchise and only 30 (or 32 in the NFL) toys out there. Plus with the national TV and merchandise revenues and league revenue sharing it really doesn’t matter if the team is a title contender or not. They all make money.
I should start another thread on this as to call Jordan out is unfair. The point of the thread was it disgusts me that owners make so much money on these awful teamsm particularly when we the taxpayers help them by building their stadiums.
I"m closing this thread to new posts and will start a new thread on this after the holiday on Tuesday.
This post was edited 1 minute after it was posted.