Everything I'm reading shows that the franchise makes a nice profit. Where are you seeing that Gayle loses money owning the Pels?
 |
| . |
|
Everything I'm reading shows that the franchise makes a nice profit. Where are you seeing that Gayle loses money owning the Pels?
Good positive energy.
But also, yo mama's fat.
Three years? I’m in for $200.
I would say you are either getting info from a bad source or are floating pure speculation in hopes of being right years down the road.Originally Posted by UNO Gracias
I'm still hung up on the "operates at a loss" thing. From what I'm reading, the Pels have steadily been increasing revenue in the past 15 years.....from $95Mill in 07/08 all the way $224Mill in the 18/19 season. No way is this franchise losing money.
I don?t think they are operating at a loss (I don’t think I wrote that, I said that it wasn’t her greatest performing asset). I think the ROI is low. An increase in revenue is offset by deterioration of the dollar/increase in expenses. If your revenue jumps by $240M and your expenses jump by $240M you aren?t in a better spot.
Regardless, does anyone know if that trust that she put the Saints/Pels into is a revokable trust (or what type of trust it is)?
If you Jimmer it, they will come.
Yeah, I'm thinking that you're right. The NBA is so flush with tv money and now that there is a solid revenue sharing model, small market teams that DON'T pay a luxury tax, are pretty much guaranteed profit.
That being said, Covid changed things a bit. Everyone took a loss last year but the owners are getting the full 10% in player escrow money until it evens out to a 50/50 split over the course of the remaining years on this collective bargaining agreement.
For example, in a typical season, players put 10% of their salaries into an escrow account. When the season is over and both sides figure out how much revenue was generated, they figure out how much needs to go back to the players to create a 50/50 split so let's say the league generates $7 billion in revenue. After putting money in the escrow account, player intake comes to $3.3 billion. That is $200 million short of $3.5 billion which is half of $7 billion which would account for a 50/50 split. That $200 million then gets sent back to the players in form of checks.
Since Covid robbed arenas of fans last year, the owners collected the full 10% that they are allowed but even then, it still doesn't come to a 50/50 split so they'll roll it over and get the full 10% again this year. They'll keep doing the 10% thing until revenue split between players and owners since the beginning of the covid era reaches a 50/50 split.
In summation, unless Gayle starts getting really silly with the payroll, she will show a nice profit margin when the owners finally reach that 50/50 point sometime next season or the season after.
Done
You called it a "losing investment (in a financial sense)" in one post and a "money pit" in a later one. You didn't just say it.....you doubled down. Lol
But even if it wasn't what you meant......I'm then not understanding your angle. The Pelicans are making a profit. They are a great return on investment AND that margin has more than doubled in 15 years......so why would the franchise being a great growing influence motivate Gayle to sell?
Last edited by msusousaphone; 12-30-2021 at 06:22 PM.
Perhaps I should have chose my words more carefully, I am not saying they are operating in the red, they just aren’t operating at a level that you might expect. Anyway, you taking the bet, or nah?
You all are talking about two different animals....
As a Profit Center, the team is probably performing poorly and operating at a loss. This means when you subtract the expenses in a given year from your revenue, the result is a loss. Uncle Sam doesn't like this.
As an Investment, the team is appreciating rapidly which makes it's a highly performing asset. The appreciation is considered unrealized gain on the books meaning that you don't recognize the gain for tax purposes until you liquidate the asset (sell the team). So unless you're hard up for cash, it behooves you to hold on to the asset and not share the appreciation with Uncle Sam unless you have losses from other investments to offet the gain.
Last edited by As I See It; 12-30-2021 at 09:07 PM.
The only way she keeps the team if she gets a new arena. Reading between the lines
https://www.fox8live.com/2021/10/01/...-will-be-sold/
We?re gonna have to find a long-term solution and you know, we?re talking about different ideas now and we?ll see where we go,? he said.Lauscha said when it comes to both options, everything is on the table. But he knows whatever option there is, there needs to be a winning team to occupy that arena.
“You owe it to this market to put a winner on a court. We haven’t done that yet. Really this franchise has not done that. I mean, we’ve had some starts and stops over the entire course since the Hornets got here,” Lauscha said. “But we have not had a sustained winner like we’ve had with the New Orleans Saints.”
“I think before you can make any requests, you know, or make any long-term decisions about this franchise, you owe it to put a winning product on the court.”
“I think before you can make any requests, you know, or make any long-term decisions about this franchise, you owe it to put a winning product on the court.”
I also see this as meaning they really can't make a long-term decision about this market until they actually put a consistently winning product on the court. Its hard to say a franchise can't make it in NOLA if you don't give the people a product to support.
Why not make it more fun than just straight cash? I'll bet a bar tab at any bar in the city open to any poster on this board. Loser foots the entire bill
Look who got into real estate
https://www.nola.com/news/business/a...fb02d5f6f.html
https://www.bizneworleans.com/gayle-...porate-realty/
I don’t drink.
You can order a soda or ginger ale at the bar though
Then there's really no excuse for these bets you're making...
I'll assume the date of payment is 12/29/24 which is three years from when I accepted my portion of the bet.
Yes. $200?
Yes. Any more than that and it gets a little weird for me either way. Lolz.
Looks like we'll have NAW, Naji, and Jose back....might have BI and Hart (reported day to day) but JV will be out the next 5 days.
Happy New Year.
damn... meanwhile the roots are being planted to become one of the better teams in the league. i can feel it.
dont even tell me this team wont be a winner next year. we nailed this draft, plus we got players developing nicely
I again want to point out to everyone that NOLA has an elite group of people who pretend to be insiders.
NOLA does not have insiders.
New people can search back to any news event and note that our "insiders" were in the dark for everything.
OK, you can go back to the Shinn days with 42 and Harvey Hornet and find inside info, but ever since the Bensons took over, there has never been a move leaked by "insiders" before it happened.
The team is profitable so Gayle is not going to sell it. She's local so this team isn't moving. This is a well run organization that wants to win. Using absolutes about the future success of the franchise is just more confirmation that the lack of insider status has led to bitterness.
WELL SAID
+1
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote