Nets Luxury Tax Bill Is More Than The Raps Payroll!l

[LBF]

That is not a realized profit until he sells.

Until he sells, he is losing money.

Where he's losing money. He's gaining money somewhere else. So it would seem he's not all too concerned right now

[Soft Euro]

That is not a realized profit until he sells.

Until he sells, he is losing money.

No one who invests in something and has, let's say maintenance costs, while the value goes up more than the costs, consider himself to be losing money. That will only happen when the value goes down.

In this case I'd assume ownership and publicity and contacts that come with will probably be used for other business ventures as well (it's a guess though).

[Dino4life]

I'm in sciences, so i wont pretend to be a major buissness Savant. But one thing i do know, Billionaires dont become Billionaires by pissing 200 million away for no reason.

Its an investment, at very oppertune time. They just moved to New york, and NY seems to have peaked and will probably get a lot worse before they get better.

To make his investment Worth it, he doesn't need to win a title. He just needs to be better than the knicks year after year untill they steal a big enough of the piece of the PIE. Use that Championship talk as rallying cry to get the Fans behind the Nets instead of the knicks. Kind of Like TL is doing to us right now, like the Lakers have been doing for years. Just being in that conversation every year (well most years) in a big market turns their Tax bill into a joke.

You can't compare two subjects operating under different variables. Us going into the Tax just cause MLSE can afford it isn't gonna do us any favors without respectability, especially when MLSE already owns their Biggest competition: The Leafs (go Habs go)

[Xixak]

That is not a realized profit until he sells.

Until he sells, he is losing money.

Lol you tried to sound smart but kinda goofed here.

How do you know what the Nets' revenue is? Selling the team isn't the only way they make money.

[mcHAPPY]

No one who invests in something and has, let's say maintenance costs, while the value goes up more than the costs, consider himself to be losing money. That will only happen when the value goes down.

In this case I'd assume ownership and publicity and contacts that come with will probably be used for other business ventures as well (it's a guess though).

Lets assume you bought a house as a rental property. The house was $200K. The house is paying $2000 in rental income per month with mortgage/insurance/property taxes/repairs running, on average $2500 per month. At the end of the year you are down $6000. But market value has gone up significantly. The house is now worth $300K. You are losing on average $6000 per year but you've gained a net worth of $100k. What does that do for your operating expenses? Nothing. You're still operating at a $500/mo or $6000/yr loss. When you sell the property you'll get that $100K profit (minus the ongoing losses).


Or how about a stock? You bought 1000 shares of AAPL at $10 in 2003. Great! You held on to it for the last 10 years including the run up to $700 in September 2012. You turned your $10,000 in to $700,000. Unfortunately you still own AAPL today as it trades at $460. What happened to the $240,000 you once 'had'? Its gone because you did not realize (ie. sell) the profit.


If you want to say that owning AAPL stock allows you in to the corporate shareholders meetings where you meet some people who then give you business to your oil and gas exploration company which leads to investment in to your company.... well, sure, yeah, the Nets are raking Prokhorov is raking in money hand over foot despite losing up to an estimated $50M per year operating the team. Unfortunately, I'm not sure how one works that in to a corporate balance sheet and I'm also not sure the accounting principles used to realize that profit/loss.

http://www.netsdaily.com/2013/7/19/4...lion-this-year

[mcHAPPY]

Lol you tried to sound smart but kinda goofed here.

How do you know what the Nets' revenue is? Selling the team isn't the only way they make money.

How so? Because the realities do not back up your opinion?

http://www.netsdaily.com/2013/7/19/4...lion-this-year


Losing money year after year and saying it is OK is fine and dandy as long as the asset value continues to rise. When the asset value does not continue to rise or worse declines - or worse still declines dramatically - you have things such as a housing bubble. Wait a second, that sounds kind of familiar.


Prokohov has owned the Nets since 2010. In Jersey he was losing an estimated $85M per season. That is $170M in losses plus the $50M this season. He has lost $220M operating the team. Sure the value of the franchise has rise (along with the real estate value of Barclays Center) but he will not tap the actual profit until he sells the team.

Selling the team is the only way he makes money when it is losing money year after year. What other ways are there? Re-financing? Ummm, no. You see he still owes debt on that 'profit'.


Lets not confuse what the Nets are to Prokhorov: a toy and hobby. When you are valued at $13B and are making money hand over fist in other areas, you tend to not mind losing money on your toys and hobbies. For the average Joe, how many make money playing golf?

[Puffer]

...Lets not confuse what the Nets are to Prokhorov: a toy and hobby. When you are valued at $13B and are making money hand over fist in other areas, you tend to not mind losing money on your toys and hobbies. For the average Joe, how many make money playing golf?

Always with the reality checks Matt! It's why you are loved on the forum.

[mcHAPPY]

Always with the reality checks Matt! It's why you are loved on the forum.

Thanks, Puffer but I think your opinion is the exception. lol