Sixers sold in middle of lockout

[nickagneta]

The NBA Board of Governors sent out a release Tuesday morning saying it had "unanimously approved the sale of the Philadelphia 76ers to an investment group led by Joshua Harris and David Blitzer."

That cleared the way for  new owner Harris to take charge of the team, as well as Blitzer and former NBA player agent/attorney Jason Levien, and for Tuesday's news conference.

The new owners named former Philadelphian Adam Aron CEO. Among those investing in the team are actor/singer Will Smith and wife Jada Pinkett Smith.

"My partners and I are thrilled to have become owners of the Sixers,' said Harris in a release. "It's an honor to be part of this storied franchise. We want to build on the team's momentum and be world class and cutting edge in everything we do."

Harris, a leveraged buyout specialist, ranked 655th on Forbes magazine's list of the world's billionaires (at $1.5 billion) in March 2010. He earned his undergraduate degree at Penn, as well as an MBA from Havard.

The deal is reportedly for $300 million, but doesn't include the Wells Fargo Center where the team plays. Former team owners Comcast-Spectacor still own the arena and the NHL's Philadelphia Flyers.

http://www.phillyburbs.com/sports/sixers/sixers-sale-complete/article_11ffd062-bd18-5b31-8413-3fe7ca89fc85.html

Not a bad turn given that Harold Katz sold Ed Snider the 76ers for only $130 million just 15 year ago.

(As a frame of reference, the Sixers' current ownership spent $130 million to acquire the team from Harold Katz in April 1996; Katz bought the team from the late F. Eugene Dixon for about $12 million in July 1981.)

http://www.lofts640.com/press_dnews_inasale.html

$300 million for a team that may not have a season and would obviously lose money from this and for a team that constantly ranks in the bottom 5-7 teams in regards to attendance.

http://espn.go.com/nba/attendance/_/year/2011

And now they are going to make themselves even more profitable by slashing ticket prices by as much as 50% for some 9000 seats:

http://www.bizjournals.com/philadelphia/news/2011/10/18/new-76ers-owners-promise-to-slash.html

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

[Chris]

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

But they are determined to fix that problem with the new CBA, and profit sharing.  So, franchises should be much more valuable going forward (providing the two sides can agree).

It is very curious timing though.  I would think that someone as media savvy as Stern would have put a hold on this until the lockout were worked out.

[BballTim]

The NBA Board of Governors sent out a release Tuesday morning saying it had "unanimously approved the sale of the Philadelphia 76ers to an investment group led by Joshua Harris and David Blitzer."

That cleared the way for  new owner Harris to take charge of the team, as well as Blitzer and former NBA player agent/attorney Jason Levien, and for Tuesday's news conference.

The new owners named former Philadelphian Adam Aron CEO. Among those investing in the team are actor/singer Will Smith and wife Jada Pinkett Smith.

"My partners and I are thrilled to have become owners of the Sixers,' said Harris in a release. "It's an honor to be part of this storied franchise. We want to build on the team's momentum and be world class and cutting edge in everything we do."

Harris, a leveraged buyout specialist, ranked 655th on Forbes magazine's list of the world's billionaires (at $1.5 billion) in March 2010. He earned his undergraduate degree at Penn, as well as an MBA from Havard.

The deal is reportedly for $300 million, but doesn't include the Wells Fargo Center where the team plays. Former team owners Comcast-Spectacor still own the arena and the NHL's Philadelphia Flyers.

http://www.phillyburbs.com/sports/sixers/sixers-sale-complete/article_11ffd062-bd18-5b31-8413-3fe7ca89fc85.html

Not a bad turn given that Harold Katz sold Ed Snider the 76ers for only $130 million just 15 year ago.

(As a frame of reference, the Sixers' current ownership spent $130 million to acquire the team from Harold Katz in April 1996; Katz bought the team from the late F. Eugene Dixon for about $12 million in July 1981.)

http://www.lofts640.com/press_dnews_inasale.html

$300 million for a team that may not have a season and would obviously lose money from this and for a team that constantly ranks in the bottom 5-7 teams in regards to attendance.

http://espn.go.com/nba/attendance/_/year/2011

And now they are going to make themselves even more profitable by slashing ticket prices by as much as 50% for some 9000 seats:

http://www.bizjournals.com/philadelphia/news/2011/10/18/new-76ers-owners-promise-to-slash.html

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

  I saw the part in the article about slashing prices, but does it say that will make them more profitable? Are they profitable now?

[nickagneta]

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

But they are determined to fix that problem with the new CBA, and profit sharing.  So, franchises should be much more valuable going forward (providing the two sides can agree).

It is very curious timing though.  I would think that someone as media savvy as Stern would have put a hold on this until the lockout were worked out.

Or maybe there isn't a problem and they are just trying to get a larger piece of the pie now and in the future. For instance, the Celtics have found a way to make money through their television rights by buying a 20% non-controlling interest in CSNNE. So all monies made through broadcasting their own games doesn't count to the BRI and they get to keep it.

This can't be an uncommon thing which means the owners are making money through other ventures by owning their teams and are just hiding that info while presenting tax friendly P & Ls to the players that include interest deductions on their loan payments to purchase the team and depreciation of the players as assets.

And of course, they never talk about how much money they make on the sale of the team when they do sell it. Snider will still own 10% of the Sixers, he will own the arena they play in and making money of the lease the Sixers pay and he will have turned a $170 million profit on the sale of the team for a 15 year investment.

I am just not believing a word the owners have cried about a broken system and never have. This sale at this time only fortifies my beliefs.

[KGs Knee]

The NBA Board of Governors sent out a release Tuesday morning saying it had "unanimously approved the sale of the Philadelphia 76ers to an investment group led by Joshua Harris and David Blitzer."

That cleared the way for  new owner Harris to take charge of the team, as well as Blitzer and former NBA player agent/attorney Jason Levien, and for Tuesday's news conference.

The new owners named former Philadelphian Adam Aron CEO. Among those investing in the team are actor/singer Will Smith and wife Jada Pinkett Smith.

"My partners and I are thrilled to have become owners of the Sixers,' said Harris in a release. "It's an honor to be part of this storied franchise. We want to build on the team's momentum and be world class and cutting edge in everything we do."

Harris, a leveraged buyout specialist, ranked 655th on Forbes magazine's list of the world's billionaires (at $1.5 billion) in March 2010. He earned his undergraduate degree at Penn, as well as an MBA from Havard.

The deal is reportedly for $300 million, but doesn't include the Wells Fargo Center where the team plays. Former team owners Comcast-Spectacor still own the arena and the NHL's Philadelphia Flyers.

http://www.phillyburbs.com/sports/sixers/sixers-sale-complete/article_11ffd062-bd18-5b31-8413-3fe7ca89fc85.html

Not a bad turn given that Harold Katz sold Ed Snider the 76ers for only $130 million just 15 year ago.

(As a frame of reference, the Sixers' current ownership spent $130 million to acquire the team from Harold Katz in April 1996; Katz bought the team from the late F. Eugene Dixon for about $12 million in July 1981.)

http://www.lofts640.com/press_dnews_inasale.html

$300 million for a team that may not have a season and would obviously lose money from this and for a team that constantly ranks in the bottom 5-7 teams in regards to attendance.

http://espn.go.com/nba/attendance/_/year/2011

And now they are going to make themselves even more profitable by slashing ticket prices by as much as 50% for some 9000 seats:

http://www.bizjournals.com/philadelphia/news/2011/10/18/new-76ers-owners-promise-to-slash.html

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

  I saw the part in the article about slashing prices, but does it say that will make them more profitable? Are they profitable now?

Are they profitable now?  Looks to me like a $170m profit.

But that probably isn't good enough for these greedy owners.

And just one question.  That $170m profit, do any of the players who played for Philly during the now previous ownership get to share in the profit from the sale of the team?

If not (which they obviously don't), the players should not be asked to shoulder any of the risk involved in the purchase of the team.

[Fan from VT]

The NBA Board of Governors sent out a release Tuesday morning saying it had "unanimously approved the sale of the Philadelphia 76ers to an investment group led by Joshua Harris and David Blitzer."

That cleared the way for  new owner Harris to take charge of the team, as well as Blitzer and former NBA player agent/attorney Jason Levien, and for Tuesday's news conference.

The new owners named former Philadelphian Adam Aron CEO. Among those investing in the team are actor/singer Will Smith and wife Jada Pinkett Smith.

"My partners and I are thrilled to have become owners of the Sixers,' said Harris in a release. "It's an honor to be part of this storied franchise. We want to build on the team's momentum and be world class and cutting edge in everything we do."

Harris, a leveraged buyout specialist, ranked 655th on Forbes magazine's list of the world's billionaires (at $1.5 billion) in March 2010. He earned his undergraduate degree at Penn, as well as an MBA from Havard.

The deal is reportedly for $300 million, but doesn't include the Wells Fargo Center where the team plays. Former team owners Comcast-Spectacor still own the arena and the NHL's Philadelphia Flyers.

http://www.phillyburbs.com/sports/sixers/sixers-sale-complete/article_11ffd062-bd18-5b31-8413-3fe7ca89fc85.html

Not a bad turn given that Harold Katz sold Ed Snider the 76ers for only $130 million just 15 year ago.

(As a frame of reference, the Sixers' current ownership spent $130 million to acquire the team from Harold Katz in April 1996; Katz bought the team from the late F. Eugene Dixon for about $12 million in July 1981.)

http://www.lofts640.com/press_dnews_inasale.html

$300 million for a team that may not have a season and would obviously lose money from this and for a team that constantly ranks in the bottom 5-7 teams in regards to attendance.

http://espn.go.com/nba/attendance/_/year/2011

And now they are going to make themselves even more profitable by slashing ticket prices by as much as 50% for some 9000 seats:

http://www.bizjournals.com/philadelphia/news/2011/10/18/new-76ers-owners-promise-to-slash.html

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

  I saw the part in the article about slashing prices, but does it say that will make them more profitable? Are they profitable now?

Are they profitable now?  Looks to me like a $170m profit.

But that probably isn't good enough for these greedy owners.

And just one question.  That $170m profit, do any of the players who played for Philly during the now previous ownership get to share in the profit from the sale of the team?

If not (which they obviously don't), the players should not be asked to shoulder any of the risk involved in the purchase of the team.

Correct me if i am wrong, but in addition to 170m profit, each season the old owners owned that team, they were also deducting "depreciation" on the franchise/players, and gaining the subsequent tax breaks/removing that from the BRI calculations!

[KGs Knee]

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

But they are determined to fix that problem with the new CBA, and profit sharing.  So, franchises should be much more valuable going forward (providing the two sides can agree).

It is very curious timing though.  I would think that someone as media savvy as Stern would have put a hold on this until the lockout were worked out.

Or maybe there isn't a problem and they are just trying to get a larger piece of the pie now and in the future. For instance, the Celtics have found a way to make money through their television rights by buying a 20% non-controlling interest in CSNNE. So all monies made through broadcasting their own games doesn't count to the BRI and they get to keep it.

This can't be an uncommon thing which means the owners are making money through other ventures by owning their teams and are just hiding that info while presenting tax friendly P & Ls to the players that include interest deductions on their loan payments to purchase the team and depreciation of the players as assets.

And of course, they never talk about how much money they make on the sale of the team when they do sell it. Snider will still own 10% of the Sixers, he will own the arena they play in and making money of the lease the Sixers pay and he will have turned a $170 million profit on the sale of the team for a 15 year investment.

I am just not believing a word the owners have cried about a broken system and never have. This sale at this team own fortifies my beliefs.

Agreed.  TP for you

The owners are just fudging numbers to make it look like they are losing money as a means to justify their attempted money grab.

It's blatantly obvious, and pathetic.

[nickagneta]

The NBA Board of Governors sent out a release Tuesday morning saying it had "unanimously approved the sale of the Philadelphia 76ers to an investment group led by Joshua Harris and David Blitzer."

That cleared the way for  new owner Harris to take charge of the team, as well as Blitzer and former NBA player agent/attorney Jason Levien, and for Tuesday's news conference.

The new owners named former Philadelphian Adam Aron CEO. Among those investing in the team are actor/singer Will Smith and wife Jada Pinkett Smith.

"My partners and I are thrilled to have become owners of the Sixers,' said Harris in a release. "It's an honor to be part of this storied franchise. We want to build on the team's momentum and be world class and cutting edge in everything we do."

Harris, a leveraged buyout specialist, ranked 655th on Forbes magazine's list of the world's billionaires (at $1.5 billion) in March 2010. He earned his undergraduate degree at Penn, as well as an MBA from Havard.

The deal is reportedly for $300 million, but doesn't include the Wells Fargo Center where the team plays. Former team owners Comcast-Spectacor still own the arena and the NHL's Philadelphia Flyers.

http://www.phillyburbs.com/sports/sixers/sixers-sale-complete/article_11ffd062-bd18-5b31-8413-3fe7ca89fc85.html

Not a bad turn given that Harold Katz sold Ed Snider the 76ers for only $130 million just 15 year ago.

(As a frame of reference, the Sixers' current ownership spent $130 million to acquire the team from Harold Katz in April 1996; Katz bought the team from the late F. Eugene Dixon for about $12 million in July 1981.)

http://www.lofts640.com/press_dnews_inasale.html

$300 million for a team that may not have a season and would obviously lose money from this and for a team that constantly ranks in the bottom 5-7 teams in regards to attendance.

http://espn.go.com/nba/attendance/_/year/2011

And now they are going to make themselves even more profitable by slashing ticket prices by as much as 50% for some 9000 seats:

http://www.bizjournals.com/philadelphia/news/2011/10/18/new-76ers-owners-promise-to-slash.html

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

  I saw the part in the article about slashing prices, but does it say that will make them more profitable? Are they profitable now?

I can't confirm their profitability, only the Sixers could and they aren't making those numbers public. My point was sarcasm. I don't see how slashing prices on 9000 seats in an arena with 20000 seats when you are filling 15000 of the 20000 seats is going to generate more money. Sure, you might now be able to sell the empty 5000 seats but you are still taking a hit on 4000 seats that you were already selling at the higher prices.

Depending on the details I guess it could generate more money if they sell out every game and the people filling the seats formerly empty seats are buying more concessions and parking and the team is getting a cut of any increased concessions and parking revenues. But those details aren't included.

[greenpride32]

According to CPI inflation numbers $300m today could buy $180m worth of goods 15 years ago.  It really isn't as much profit as you think it is.  When I was a kid a school milk cost a quarter.  For my parents it was a nickel.  Today I'm only guessing it's probably a dollar.

Not EVERY team in the league is doing poorly.  I'm not sure how the 76ers fall in terms of profits and losses right now, but the franchise has a rich history and the city has a die hard sports fan base. So a team from a major sports league can certainly survive there.  

Bottom line is the owners collectively lost millions.  No matter how you spin it, even if the Lakers, Bull, and Knicks shared their profit with other teams it still comes out to a loss.  That's why the players argument of increased revenue sharing alone does not fix the problem alone.

[BballTim]

The NBA Board of Governors sent out a release Tuesday morning saying it had "unanimously approved the sale of the Philadelphia 76ers to an investment group led by Joshua Harris and David Blitzer."

That cleared the way for  new owner Harris to take charge of the team, as well as Blitzer and former NBA player agent/attorney Jason Levien, and for Tuesday's news conference.

The new owners named former Philadelphian Adam Aron CEO. Among those investing in the team are actor/singer Will Smith and wife Jada Pinkett Smith.

"My partners and I are thrilled to have become owners of the Sixers,' said Harris in a release. "It's an honor to be part of this storied franchise. We want to build on the team's momentum and be world class and cutting edge in everything we do."

Harris, a leveraged buyout specialist, ranked 655th on Forbes magazine's list of the world's billionaires (at $1.5 billion) in March 2010. He earned his undergraduate degree at Penn, as well as an MBA from Havard.

The deal is reportedly for $300 million, but doesn't include the Wells Fargo Center where the team plays. Former team owners Comcast-Spectacor still own the arena and the NHL's Philadelphia Flyers.

http://www.phillyburbs.com/sports/sixers/sixers-sale-complete/article_11ffd062-bd18-5b31-8413-3fe7ca89fc85.html

Not a bad turn given that Harold Katz sold Ed Snider the 76ers for only $130 million just 15 year ago.

(As a frame of reference, the Sixers' current ownership spent $130 million to acquire the team from Harold Katz in April 1996; Katz bought the team from the late F. Eugene Dixon for about $12 million in July 1981.)

http://www.lofts640.com/press_dnews_inasale.html

$300 million for a team that may not have a season and would obviously lose money from this and for a team that constantly ranks in the bottom 5-7 teams in regards to attendance.

http://espn.go.com/nba/attendance/_/year/2011

And now they are going to make themselves even more profitable by slashing ticket prices by as much as 50% for some 9000 seats:

http://www.bizjournals.com/philadelphia/news/2011/10/18/new-76ers-owners-promise-to-slash.html

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

  I saw the part in the article about slashing prices, but does it say that will make them more profitable? Are they profitable now?

Are they profitable now?  Looks to me like a $170m profit.

But that probably isn't good enough for these greedy owners.

And just one question.  That $170m profit, do any of the players who played for Philly during the now previous ownership get to share in the profit from the sale of the team?

If not (which they obviously don't), the players should not be asked to shoulder any of the risk involved in the purchase of the team.

  That's asset appreciation though. If I own a restaurant that loses %2k a month but I sell it for $50k more than I paid for it, is the restaurant profitable?

[nickagneta]

According to CPI inflation numbers $300m today could buy $180m worth of goods 15 years ago.  It really isn't as much profit as you think it is.  When I was a kid a school milk cost a quarter.  For my parents it was a nickel.  Today I'm only guessing it's probably a dollar.

Not EVERY team in the league is doing poorly.  I'm not sure how the 76ers fall in terms of profits and losses right now, but the franchise has a rich history and the city has a die hard sports fan base. So a team from a major sports league can certainly survive there.  

Bottom line is the owners collectively lost millions.  No matter how you spin it, even if the Lakers, Bull, and Knicks shared their profit with other teams it still comes out to a loss.  That's why the players argument of increased revenue sharing alone does not fix the problem alone.

Who cares what the inflation rate is. I take 4130 million and put it into an investment vehicle. If 15 years later I am pulling out $300 million, I have made a $170 million profit.

There isn't a businessperson in the world that wouldn't love to have that type of return on their investment and there are no businesspeople in the world who would not do that type of investment because the CPI inflation index would say that they money they receive 15 years later won't be worth as much.

And again, I don't believe they are losing money. The figures they show are P&Ls given to the government for tax purposes that include all sorts of depreciation on players and deductions for interest payments on loans taken out to purchase the team and any other type of creative accounting to hide having to pay taxes. I doubt those P&L's truly reflect the game's true fiscal situation.

[Donoghus]

From a timing standpoint, why the heck would the NBA allow this to go through or, at least, be publicly announced?

The owners just open themselves up to be scrutinized at every end based on something like this.

You're in the midst of collective bargaining negotiations.  Anything and everything is going to be used for leverage.

[dtrader]

According to CPI inflation numbers $300m today could buy $180m worth of goods 15 years ago.  It really isn't as much profit as you think it is.  When I was a kid a school milk cost a quarter.  For my parents it was a nickel.  Today I'm only guessing it's probably a dollar.

Not EVERY team in the league is doing poorly.  I'm not sure how the 76ers fall in terms of profits and losses right now, but the franchise has a rich history and the city has a die hard sports fan base. So a team from a major sports league can certainly survive there.  

Bottom line is the owners collectively lost millions.  No matter how you spin it, even if the Lakers, Bull, and Knicks shared their profit with other teams it still comes out to a loss.  That's why the players argument of increased revenue sharing alone does not fix the problem alone.

Who cares what the inflation rate is. I take 4130 million and put it into an investment vehicle. If 15 years later I am pulling out $300 million, I have made a $170 million profit.

There isn't a businessperson in the world that wouldn't love to have that type of return on their investment and there are no businesspeople in the world who would not do that type of investment because the CPI inflation index would say that they money they receive 15 years later won't be worth as much.

And again, I don't believe they are losing money. The figures they show are P&Ls given to the government for tax purposes that include all sorts of depreciation on players and deductions for interest payments on loans taken out to purchase the team and any other type of creative accounting to hide having to pay taxes. I doubt those P&L's truly reflect the game's true fiscal situation.

How many teams DONT have either a rich history or a die hard fanbase? I'd say Bobcats, Clippers, Grizzlies, Twolves, Bucks, Kings, and Pacers. Thats only 7 teams that wouldnt have at least 1 of the characteristics cited for success, and three of them (clips, grizzlies, twolves) will almost definitely make $ in the next season (clips finally have a star in griffin, grizzlies are positioned to be the next OKC, and the wolves have Rubio and derrick williams coming to join love and beas).  That leaves just 4 teams that I'd say legitimately should need help to survive

And looking at the sixers appreciating to 300 from 130 mil shows a very solid gain.  If adjusting for Inflation would make 300mil today 180mil in 1996 dollars, then that's a 50mil profit on the 130mil the team actually cost in 96.

[nickagneta]

Here's another bit of info, Harold Katz bought the Sixers for $12 million, I think in 1971, and sold it for $130 million to Snider in 1996.

[nickagneta]

The NBA Board of Governors sent out a release Tuesday morning saying it had "unanimously approved the sale of the Philadelphia 76ers to an investment group led by Joshua Harris and David Blitzer."

That cleared the way for  new owner Harris to take charge of the team, as well as Blitzer and former NBA player agent/attorney Jason Levien, and for Tuesday's news conference.

The new owners named former Philadelphian Adam Aron CEO. Among those investing in the team are actor/singer Will Smith and wife Jada Pinkett Smith.

"My partners and I are thrilled to have become owners of the Sixers,' said Harris in a release. "It's an honor to be part of this storied franchise. We want to build on the team's momentum and be world class and cutting edge in everything we do."

Harris, a leveraged buyout specialist, ranked 655th on Forbes magazine's list of the world's billionaires (at $1.5 billion) in March 2010. He earned his undergraduate degree at Penn, as well as an MBA from Havard.

The deal is reportedly for $300 million, but doesn't include the Wells Fargo Center where the team plays. Former team owners Comcast-Spectacor still own the arena and the NHL's Philadelphia Flyers.

http://www.phillyburbs.com/sports/sixers/sixers-sale-complete/article_11ffd062-bd18-5b31-8413-3fe7ca89fc85.html

Not a bad turn given that Harold Katz sold Ed Snider the 76ers for only $130 million just 15 year ago.

(As a frame of reference, the Sixers' current ownership spent $130 million to acquire the team from Harold Katz in April 1996; Katz bought the team from the late F. Eugene Dixon for about $12 million in July 1981.)

http://www.lofts640.com/press_dnews_inasale.html

$300 million for a team that may not have a season and would obviously lose money from this and for a team that constantly ranks in the bottom 5-7 teams in regards to attendance.

http://espn.go.com/nba/attendance/_/year/2011

And now they are going to make themselves even more profitable by slashing ticket prices by as much as 50% for some 9000 seats:

http://www.bizjournals.com/philadelphia/news/2011/10/18/new-76ers-owners-promise-to-slash.html

I thought the NBA business model was broken and teams couldn't make a profit. Bought for $130 million sold for $300 million while having one of the most marketable NBA stars during that era and a trip to the Finals?

Stories like this make me think the NBA owners are full of it with their claims of more than $300 million in losses each year.

  I saw the part in the article about slashing prices, but does it say that will make them more profitable? Are they profitable now?

Are they profitable now?  Looks to me like a $170m profit.

But that probably isn't good enough for these greedy owners.

And just one question.  That $170m profit, do any of the players who played for Philly during the now previous ownership get to share in the profit from the sale of the team?

If not (which they obviously don't), the players should not be asked to shoulder any of the risk involved in the purchase of the team.

  That's asset appreciation though. If I own a restaurant that loses %2k a month but I sell it for $50k more than I paid for it, is the restaurant profitable?

Are you saying that is what happened or is this a rhetorical question?

Because unless you can show that the Sixers lost money every year in that 15 year span, you do not have a very good argument.