tag:blogger.com,1999:blog-12703782.post7658533420964242757..comments2024-03-25T13:42:25.771-05:00Comments on Advance Indianaâ„¢: NBA Team Values Increase 30% Over Last YearGary R. Welshhttp://www.blogger.com/profile/15185079937305083438noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-12703782.post-59850571343075952712013-01-26T19:53:12.077-05:002013-01-26T19:53:12.077-05:00Not exactly. Teams in New York and Los Angeles hav...Not exactly. Teams in New York and Los Angeles have the highest value because they are in the largest media markets, period. They have the most potential fans, the most potential eyeballs for TV sets, the most potential purchasers of said teams, the most potential purchasers of merchandise, and the most potential income. Key word being "potential." They are also valuable simply by being one of a very few major league teams. It does not mean they have the most income. It does not mean they have the most profits, or any profits at all, or any income at all. My original comparison stands. Just because something is valuable does not mean it generates income, whether it's a diamond, a Picasso or a 1956 Chevy Bel Air. That the Pacers are valuable does not mean they are profitable. Their player salaries can easily outstrip their income from attendance, concessions, and TV and radio contracts. They can be and likely are losing money. The Cleveland Browns under Art Modell were one of the NFL's most valuable franchises, but were infamously losing money and nearly went bankrupt under Modell. The Pittsburgh Penguins were one if the NHL's flagships, yet they went bankrupt in 1999 due to a terrible arena lease. This does not mean I think the Pacers should have a subsidy or that the CIB should be bending over for them. But you cannot hope to successfully challenge the CIB or the Pacers or the Colts if you do not grasp how sports economics works.Jeff Coxhttps://www.blogger.com/profile/04896694141148386531noreply@blogger.comtag:blogger.com,1999:blog-12703782.post-44865475917395165922013-01-25T07:37:14.181-05:002013-01-25T07:37:14.181-05:00Your analogy is a false one, Jeff. Gems and precio...Your analogy is a false one, Jeff. Gems and precious metals aren't valued the same as a business. A diamond is a tangible, fixed asset whose value is driven by its size, cut, color and clarity, in addition to general rules of supply and demand. It's an investment, a hedge against inflation. An NBA's franchise is largely based on its value as a going concern, and the fact that it is able to operate free of the general anti-trust restrictions that apply to other businesses. The income they are generating is a driving factor in the team's value as evidenced by the fact that the three most valuable teams are in the largest markets, New York, Chicago and LA.Gary R. Welshhttps://www.blogger.com/profile/15185079937305083438noreply@blogger.comtag:blogger.com,1999:blog-12703782.post-43715659991379051622013-01-24T22:12:21.308-05:002013-01-24T22:12:21.308-05:00Just because something is worth a lot of money doe...Just because something is worth a lot of money doesn't mean it generates income. A diamond is worth a lot of money, but it generates no income and, if you factor in insurance and security for it, a diamond actually loses money. Team values are not an indicator of profitability.Jeff Coxhttps://www.blogger.com/profile/04896694141148386531noreply@blogger.comtag:blogger.com,1999:blog-12703782.post-84757195943730750612013-01-24T18:02:01.231-05:002013-01-24T18:02:01.231-05:00..."and the rich get richer..."and <b>the rich get richer</b>CircleCityScribehttps://www.blogger.com/profile/12691157547732269477noreply@blogger.com