It’s kind of philosophical debate. Cause while the owners aren’t directly making money, they are losing money to fund an appreciating asset value. So indirectly they might be making dumb money.
But can you factor in unrealized gains in negotiations? Of course you can, that’s how big start ups pay top talent top dollars with small revenues. The equity value is based on future income, and the players of today are the ones creating that future income stream. In the nba they don’t even care about all that as it is a mature league, with large cash flows today. It’s like comparing working at JP Morgan or some new fintech company. JP Morgan can pay you cash comfortably and still make insane money, but the new fintech company might have pay you and increase their losses and also give you options.
So people think about this “losing money” in a very simpleton way.
But on the other hand, how much have they lost up until now, and shyt like that makes the discussion harder. As it varies greatly per owner. Also, as compared to the new fintech company, there’s really no better alternative. Capitalistically speaking, you get what you can negotiate for. It’s the entertainment business not healthcare, agriculture or something
But can you factor in unrealized gains in negotiations? Of course you can, that’s how big start ups pay top talent top dollars with small revenues. The equity value is based on future income, and the players of today are the ones creating that future income stream. In the nba they don’t even care about all that as it is a mature league, with large cash flows today. It’s like comparing working at JP Morgan or some new fintech company. JP Morgan can pay you cash comfortably and still make insane money, but the new fintech company might have pay you and increase their losses and also give you options.
So people think about this “losing money” in a very simpleton way.
But on the other hand, how much have they lost up until now, and shyt like that makes the discussion harder. As it varies greatly per owner. Also, as compared to the new fintech company, there’s really no better alternative. Capitalistically speaking, you get what you can negotiate for. It’s the entertainment business not healthcare, agriculture or something

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