They did in 2019-20

Yes they are listed but it's quite easy for them to hide any loses etc, even if MU make a profit, again similar to loses you can make revenue appear it's coming from a certain source. Each qtr SEG will release a 4C, the next reporting season will be end of July.
I'm not sure what SEG objectives are with MU, the ASX and other capital markets and companies have some different objectives. For instance some companies and their shareholders are after growth and not dividend. All in all as long as the share price is heading north a majority of shareholders won't give a rats, you can even be losing a stack of money (eg Afterpay) but as the share price continues to surge all is well.
So to find the answer if MU makes a profit not sure SEG will shed much light sorry mate, would be good to see which clubs etc do turn a profit.

Yes fair call but at the the of the day afterpay is going up on the expectation that it will make profits in the future.

Most asx listed companies will be making investments on this basis.

expectations that Afterpay will make a profit and actually making a profit are 2 different things. A lot of share holders for APT now will not be around for when it may make a profit, that will be a different set of share holders, these share holders are the type that work on dividends.
Now let's take SEG, circa $50M MC and I believe EBIT positive (will need to check out financials to confirm) so this leads us to why then invest into a basketball team losing money?
Sometimes it could be as simple as adding value to the vertical, balance sheet building. It may be that the investment is based on tranches and MU hitting certain milestones, minimum advertising spend or VIK investment made by SEG into MU.
I doubt SEG would have a 249d taken against them from share holders regarding their investment into MU.

I understood precisely none of that!

it's financial talk, to answer would SEG need to disclose any MU profit as they are a listed company and why would share holders invest in SEG.

I'm not so much asking about disclosure of United or wildcats profits, just trying to understand the rationale behind the investment. As I understand it nbl clubs struggle to make a return in the traditional investment sense that presumably is accepted for publically listed companies.

I also don't know what VIK is

With the Wildcats, they're buying a ready made profitable brand to tie into their exiting sporting entry into WA, and with the added bonus of tax write-offs

2018-19: loss of 0.76m
2019-20: loss of 0.02m

Not bad to achieve a break even result in 19-20. Although 2020-21 results will be worse with covid impacts

So the 19-20 years weren't COVIF effected? Bullshit. They should be far less than quoted.

VIK = Value in Kind.

Very true Zodiac, I would imagine the investment is more than based on profit of MU. SEG had underlying EBIT of circa $8.5M so I would say that SEG is trying to build out their balance sheet with intangible asset value with the aim that their equity stake increases through higher franchise value. Generally when a public listed company would invest into another business for the purpose of profit (also known as buying revenue) it's a business with year after year profitability. When you are a listed company you have different multiples for company valuation or PE (price earnings) hence giving your business a higher market cap value.
Not sure MU would give SEG the market cap increase in this case so as Zodiac said I think this deal is more than profit, it's a bigger longer term play.

So for Perth fans, they need not be worried that Hutchy and Co are in it to fuck things up?

How, exactly, do you think COVID affected a season that concluded before COVID happened? How did Perth win the Finals?

Anon #767 wrote:

"It may be that the investment is based on tranches and MU hitting certain milestones, minimum advertising spend or VIK investment made by SEG into MU."

This appears to be correct. Crocmedia only paid around $1m of cash from the looks of things.

Anon #798 wrote:

"How, exactly, do you think COVID affected a season that concluded before COVID happened? How did Perth win the Finals?"

They were referring to Melbourne United's season. COVID impact was only from Game 2 onwards of the Grand Final series. United lost in the semi-finals.

"2018-19: loss of 0.76m
2019-20: loss of 0.02m"

So what is the explanation for the $700k loss then?

So on staff like Perth spends? Players? More info needed. This was pre the pay cuts so thats not a reason.

This acquisition by SEG is clearly not an income play but for capital growth. With every man and his dog buying into the NBL I'm starting to think it isn't just LK hype anymore and something is around the corner.

I agree