Golden State Warriors sell for $450 Millions

[RandallA]

News Headlines

Wow, $450 Millions and the buyer is not Ellison.

 

[dangue]

The bright side is that anyone should be better than Cohen.

 

[RandallA]

The bright side is that anyone should be better than Cohen.

You're 1000% correct.

 

[HD MM]

From the article...

The price for the team is $450 million, beating the previous NBA record—$401 million, which was the amount Robert Sarver paid for the Phoenix Suns in 2004.

Just another reason why no one cares when the owners complain their franchises are "losing money". (yeah right!)

 

[DodgerKing]

How is it possible for a sorry basketball team that owns nothing, be work nearly half a billion, while the Dodgers (who own their own stadium) is only worth about 3/4 of a billion?

 

[HD MM]

How is it possible for a sorry basketball team that owns nothing, be work nearly half a billion, while the Dodgers (who own their own stadium) is only worth about 3/4 of a billion?

The cost for operating an NBA team is more fixed than a baseball team. Thus, it's a safer investment as you're better able to predict your revenue each and every year.

In baseball, since there is no salary cap, you have no idea what the operating cost will be from year to year since it can change so frequently depending on the market.

In short, owning an NBA team is akin to owning a house on a 30-year fixed mortgage, while owning an MLB team is like owning a condo on a fluctuating interest rate mortgage along with high association fees.

Also, I'd think an indoor arena is better suited to earn additional money outside of just what the sports team generates. Concerts and other attractions can add to the profitability of a arena owner vs. what an outdoor baseball stadium owner could generate outside of just baseball.