re: The SKC is about to start falling apart

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But we've had a 2nd round team

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Yeah, the year Boogie tore his Achilles, and the year they were fully prepared to pay the tax until that happened.

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we've had a 49 win team,

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Yeah, last season… were paying the tax this season to keep that team…

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I just read an article about going into the luxury tax and how she would have to sell off pieces of the team to fund it (to get cash).

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I would like to read that. Can you provide link? Seems a bit far fetched.

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The Bensons bought the team for $338 million. It is now worth over $1.6 billion.

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This is out of date. The Forbes list has them at $2.5 Billion now. I’m not sure when it was updated though because I’m pretty sure I remember a $1.5ish figure last October when it came out.
LINK

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LINK

From the article..

"The Bensons bought the team for $338 million. It is now worth over $1.6 billion. Investment groups do not pay premiums for non-controlling, silent stakes. Still, selling a 5% stake would likely fetch between $65-$80 million, according to several league sources familiar with these investments.

Granted, this money would not all go towards roster upgrades and luxury tax bills, but it would signal the fans that everything is being done to build a winning team. Someone willing to pay the luxury tax to ensure deep playoff runs for a few years."

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Did I miss it? I did not read where it said she would have to sell off assets in order to be able to raise the cash to pay the luxury tax.

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Did I miss it? I did not read where it said she would have to sell off assets in order to be able to raise the cash to pay the luxury

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Do you believe that the team has reserves that could cover additional costs? The team does not generate a ton of cash, in comparison to other teams. The most recent figure I saw for total revenue was 262M, which is well below league average. The players receive over 60% of the pie, operating costs are not cheap. Then people want her to build new facilities, enlarge payroll, fund an arena, and get the best staff. I don't see how all of that is viable. The money has to come from the team somehow..

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Do you believe that the team has reserves that could cover additional costs? The team does not generate a ton of cash, in comparison to other teams. The most recent figure I saw for total revenue was 262M, which is well below league average. The players receive over 60% of the pie, operating costs are not cheap. Then people want her to build new facilities, enlarge payroll, fund an arena, and get the best staff. I don't see how all of that is viable. The money has to come from the team somehow..

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Do you think large corporations run only on cash sitting in their drawers? If she needed cash, do you not think she would qualify for a line of credit? It is silly to think that she is so cash poor that she would have to start selling off assets to pay a luxury tax bill. That is an odd assumption.

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Do you think large corporations run only on cash sitting in their drawers?

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I believe that they are budgeted and only make moves that generate more revenue. I am sure that the team has cash on hand/reserves.

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If she needed cash, do you not think she would qualify for a line of credit?

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I'm sure people are lining up to lend the team cash, even at rates well below market. But I don't think they would take on any debt, that isn't short-term. Unless it is part of a larger plan, like a capital construction project that takes multiple years.

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It is silly to think that she is so cash poor that she would have to start selling off assets to pay a luxury tax bill. That is an odd assumption.

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I don't spend others people money or demand how they should allocate. If we want her to spend, the team needs to make more money. Or people need to exhibit how spending this money will generate greater results. If we go above the tax lime by 5M, we lose the bonus for being below (someone said it was 15M) plus whatever the tax penalty. Can you or any guarantee that extra 20-22M is going to result in more succes? That's a lot of money, even for a billionaire.

This is the reality for how small market teams, with responsible owners operate. Even the Warriors are smarting up and changing their model. They make almost triple the revenue of the Pelicans and are scaling back. There is definitely a time to gamble, to go for it. This team, right now, isn't that time..

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However, your claim that in order to pay the luxury tax, Gayle would have to sell off assets is what I completely disagree with and it is far from accurate.

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You and I obviously view a business in different ways. Yes, she has wealth and money. But that is separate from the team and how it is financed. The money would/should come from the organization. There are many ways that she can generate additional funds. Selling off shares is a primary source and a very common practice..

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Selling off shares is a primary source and a very common practice..

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Is it for NBA owners who own 100% of a team?

Can you provide examples and where I can read up on that?

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What were the Pelicans net profits last season?

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This is not disclosed by teams, they have an operating income online that adds up to around 400 million for the past 12 years since the Bensons purchased the team, but again that is not profits as operating income only includes what’s left after what it costs to run the team itself. It doesn’t include projects like building practice facilities, taxes, stadium expenses etc. If I had to give a rough estimate I would say the Pelicans average probably around 10-15 million a year in actual profits, and that is including the luxury tax payouts they have been receiving, which without those the team is likely losing money even if they don’t pay the tax.