07-01-2024, 01:24 PM
(07-01-2024, 01:18 PM)DallasMaverick Wrote: 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.
But it is not cash you are after, it is growth.
What the numbers show is that Mavs (or any other franchise) are a positive business, they don't need rich owners pumping cash into them. All the while their value is growing at a very high rate.