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re: Is this trade for Melo realistic?

Posted on 8/5/10 at 11:01 pm to
Posted by Beastwood
Baton Rouge
Member since Jun 2009
1302 posts
Posted on 8/5/10 at 11:01 pm to
I would think the ownership transition would need to be finalized in order to for the team to go back over the tax threshold.

From a value standpoint, I'd hate to give up all our assets (youth/expirings) but if it means locking up Melo and (presumably) Paul long-term then that may be what we're looking at realistically. Scott's no longer here to clash w/ JR and Birdman would be a nice athletic big off the bench. But we'd have no backup point.

Paul/filler
JR/QPon
Melo/Posey/QPon
West/Brackins
Okafor/Birdman
Posted by AlejandroInHouston
New Orleans
Member since Apr 2007
18776 posts
Posted on 8/5/10 at 11:03 pm to
quote:

But we'd have no backup point.


Yeah it's the "Miami" problem that Bill Simmons kept harping about - how are they going to fill out their roster without being like $50MM over the luxury tax, but guys would be clamoring to come play here and fill that spot on the cheap just like in Miami. I think it would organically take care of itself.
Posted by AlejandroInHouston
New Orleans
Member since Apr 2007
18776 posts
Posted on 8/5/10 at 11:07 pm to
quote:

I would think the ownership transition would need to be finalized in order to for the team to go back over the tax threshold.


Really think about this. As it stands we're going to average 12,500 fans per game next season (ballpark) with not all suites sold, and only 70% of premium seats sold. Let's be optimistic and say we host 3 first round home playoff games at $2MM gate revenue each game.

Now the trade scenario: We average 18,000 fans per game next season, 90% suites are sold, 90% premium seats are sold. Let's say we host 3 first round home playoff games at $2MM gate revenue each game, 3 second round home playoff games at $2.5MM gate revenue each, and 3 WCF games at $3MM gate revenue each.

You're easily talking about an extra $25 to $30MM in ticket sales next season alone with the improved roster. That's not even addressing new corporate sponsorships, merchandise sales, a better media deal (I think this one is almost up).

I know you'd have to do a way more scientific and thorough cost/benefit analysis to assess the risk/reward but on the surface it seems like a no brainer.
This post was edited on 8/5/10 at 11:10 pm
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