Quote:
Originally Posted by DavidGlover
The main profit in the NBA is made when the team sells, (ask Schultz), public subsidies and beneficial leases. City officials admit they will go from $500,000 a year plus at the Ford to maybe breaking even. I understand the zeal. The Sonic's own expert shows the campaign on citizens and legislators was disingenuous. Not the best way to set public policy, but who cares about all the that, in this case not the majority of voters that showed up.
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One cannot count on making a profit when the team is sold. Case in point. Neither Paul Allen (Trailblazers) nor Michael Heisley (Grizzlies) have been able to even find a buyer for their teams, much less make a profit. Why? Both teams are stuck in their respective cities and they're money losers. Howard Schultz was only able to make the profit he did because there was an option to move the team if a new arena was not built (which is why it is so hypocritical of him to be protesting now). He'd be another $40 million in the hole and still have the team if there hadn't been an option to move. If it were such a financial windfall, people would be falling all over themselves to buy those three teams.
Also, as we have learned from the housing market, one cannot always count on rapid appreciation in value, even if it has occurred in the past.
The Sonics' owners are taking a financial risk. That's why I was and am in favor of the city doing it's part.