Wendy Byrd
Two years ago

ESPN article on NBA players investing in NBL

Very positive article on ESPN's American site about former NBA players investing in the NBL.

Says that NBA players are attracted to the NBL as they see it as a "mini NBA" and the article reports that the bullets sale to Kevin Martin valued the franchise at around $9-10 million.

The article also said that Kevin Durant was seriously considering buying Brisbane and remains interested in a future NBL investment.

https://www.espn.com/nba/story/_/id/28358420/where-nba-players-go-afford-billion-dollar-team

Topic #46608 | Report this topic


MACDUB  
Two years ago

Are the $9m - $10m valuations for an NBL team accurate you reckon? Did those investors pay overs?

Is it predicated on a potentially large tv deal? a valuation drawn by potential more than current substance?

Seems like a very high valuation figure for teams that I wouldn't think are making huge amounts of money? Spending has gone through the roof across the board remember and there's a new baseline spend to at least be competitive and its probably only going to increase.

Thoughts?

Reply #782593 | Report this post


PlaymakerMo  
Two years ago

In Larry Kestelman we trust.

Reply #782602 | Report this post


LARRYBIRD33  
Two years ago

Way overs ! The next team for sale will be the Hawks, they pull an average of 3k per game at an average of $18 per ticket which roughs out at approx $684k p/a in ticket revenue (12 HOME GAMES) plus what ever they pull from the league in merchandise sales and other income. So estimate T/O $1M approx.


$1M Income
- $1M Player Salary (which is under estimated)
- $150k Coaches
- $150k Front Office Staff
- $???? Venue Hire
- $???? Travel/accommodation
- $???? Misc Expenses

Have to be at least $600k-$800K in the hole!

Pro Sports teams really are for the ultra rich who dont mind pissing some $$$ away!

Reply #782604 | Report this post


PeterJohn  
Two years ago

Larrybird33 - the unknown is how much income a club might get from corporate sponsors and similar sources. E.g., I believe Cairns gets an annual grant to run its indigenous basketball program and Nathan Jawai is an ambassador, enabling some of his salary to be covered by that grant.

Reply #782609 | Report this post


PeterJohn  
Two years ago

Unless you're making more than $200,000 a year, net, on your $10,000,000 investment, I’d have thought you’re better off buying half a dozen houses in Sydney or Melbourne and renting them out. Or else you feel pretty confident about the business plan for NBL, so your capital will grow substantially. Even so, real estate still looks good in comparison. Maybe these guys bought Telstra and Uber IPO shares too.

Reply #782611 | Report this post


KET  
Two years ago

Ownership and funding are two different things really.

It looks like sponsors are getting value across clubs: see Melbourne and Adelaide having BSolar and Harcourts as sponsors for example.

The NBL is obviously working hard to improve revenue and that means utilising clubs together, that increases the value of the clubs a bit

Reply #782614 | Report this post


Anonymous  
Two years ago

"Pro Sports teams really are for the ultra rich who dont mind pissing some $$$ away!"

Buying sports teams certainly doesn't seem like a typical investment but I guess we don't get to see all the numbers like an annual report of a publicly listed company so it's hard to say for sure.

The valuations for NBA franchises seems to keep growing, though.

Reply #782616 | Report this post


Anonymous  
Two years ago

United were meant to be on the market for $10mill. And the Bullets $5mill according to LK himself.

So clearly way over the odds.

Reply #782624 | Report this post


Anonymous  
Two years ago

Not sure if a rigorous cost:benefit analysis is needed.

This is a micro version of the mega-rich buying NBA franchises. It'a a club they want to be part of, affords access to the well-known players etc. Granted that makes money...

...but - to me it totally makes sense that current and recently retired NBA players would buy a NBL team. It costs much less, it gives them a bit of a play thing and great holidaying opportunity, and I wouldn't be surprised if there was a tax planning element to it. Park your money in a team that plays in a league of growing relevance, be an owner of a boutique franchise at 1% of the price of an NBA team. It’s entry level mogul moves.

Reply #782627 | Report this post


Perthworld  
Two years ago

If you read the quotes from Martin in his case he wants to be involved in the back office of an NBA team one day and sees owning an NBL club as experience for a role.

Reply #782628 | Report this post


Anonymous  
Two years ago

Some idiot said " Maybe these guys bought Telstra and Uber IPO shares too"
Yeah Telstra has done so well since opening haven't they.
These throwaway lines that purport to be true are getting so OTT.

Reply #782631 | Report this post


Go Dees  
Two years ago

Brisbane was on the market for $4-5mil with no takers for 12 months till Martin bought in

Reply #782636 | Report this post


KET  
Two years ago

If you're an NBA player/former who loves basketball and wants to be involved in the business of basketball with an eye towards NBA front office roles in the future and you’ve earned $50 odd million, NBL is a good way to get that experience and level of control

Reply #782637 | Report this post


Anonymous  
Two years ago

Lets get Donald Sterling to buy a team, will get NBL on front page!

Reply #782639 | Report this post


twenty four  
Two years ago

Some idiot said " Maybe these guys bought Telstra and Uber IPO shares too"
Yeah Telstra has done so well since opening haven't they.
These throwaway lines that purport to be true are getting so OTT.


Huh?

Reply #782648 | Report this post


Anonymous  
Two years ago

Read the original post re the Uber and Telstra Ipo. Then you still will be none the wiser.

Reply #782649 | Report this post


UseTaHoop  
Two years ago

Comparing team ownership to real estate ownership?

Only if the game times don't clash with open houses.

Where our resident real estate expert at?

Reply #782768 | Report this post




 

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