AROUND the NBA: LAL Hire McMillan and Brooks as Asst. Coaches | Celtics up for sale!

[DallasMaverick]

In 2022/23 season Mavs revenue was 430 mil and operating income was over 80 mil. I don't think this is considered as bad business

True, in recent years they've actually shown a small net profit.

https://www.statista.com/statistics/2860...sociation/

...although the Operating Income number excludes some expenses, like rent payments on their arena.

...and I'd argue that a $3 billion dollar asset should produce better than a 2.5% income, if it's cash flow you're after.  And if you total the last 22 years' worth of income, it's about a 1% annual cash return.

So I'll stand by my argument that it's much more like a zero-coupon bond, or maybe raw land, than a business or a commercial building, for example.

This is one of the reasons the NBA only wants owners with strong balance sheets.  They don't want the owner counting on any cash flow while they own the franchise.