GSW sign Iguodala to 3 more years

[footey]

The richer stay rich.

[Greenbean]

Rich or Cap Poor? this is surprising to me but I havent done the cap math. How can they p---ibly keep this group together with iggy making 15 mil plus??

[hodgy03038]

Eventually this will fall apart. First off, KD their best player has to sacrifice while Curry makes a half million per regular season game over the next 5 years. Then what happens when Klay is due for a contract? Should he and everyone sacrifice for Curry? I doubt it. Eventually this will break down.

[Greenbean]

Eventually this will fall apart. First off, KD their best player has to sacrifice while Curry makes a half million per regular season game over the next 5 years. Then what happens when Klay is due for a contract? Should he and everyone sacrifice for Curry? I doubt it. Eventually this will break down.

I keep thinking the same thing. Maybe after the high of winning the title this year wears off for Durant hell realize that no one really gives him credit for winning there and he wont find it as satisfying and want to leave after this next year.

Or maybe gsw owners get relistoc about having to pay crazy tax bill and theyll trade klay to us for ab and lakers pick

 

[LGC88]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

[Surferdad]

Eventually this will fall apart. First off, KD their best player has to sacrifice while Curry makes a half million per regular season game over the next 5 years. Then what happens when Klay is due for a contract? Should he and everyone sacrifice for Curry? I doubt it. Eventually this will break down.

I keep thinking the same thing. Maybe after the high of winning the title this year wears off for Durant hell realize that no one really gives him credit for winning there and he wont find it as satisfying and want to leave after this next year.

Or maybe gsw owners get relistoc about having to pay crazy tax bill and theyll trade klay to us for ab and lakers pick

 

This.  I could see the animosity growing in that locker room.  Durant (and Livingston) take discounts while Curry signs a world record contract.  They all have their rings now.  Time for family in-fighting. 

[ETNCeltics]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

Unless their owner has plans to sell soon, $135 million tax is a huge problem. You're adding up payroll and tax penalties far in excess of their revenue. Most owners can't afford to absorb a $100 million loss on a regular basis. Most of these teams operate on a budget, and Forbes' calculated value of the franchise doesn't pay a single bill.

[mctyson]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

Unless their owner has plans to sell soon, $135 million tax is a huge problem. You're adding up payroll and tax penalties far in excess of their revenue. Most owners can't afford to absorb a $100 million loss on a regular basis. Most of these teams operate on a budget, and Forbes' calculated value of the franchise doesn't pay a single bill.

They can always raise ticket and concession prices...

[hodgy03038]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

Unless their owner has plans to sell soon, $135 million tax is a huge problem. You're adding up payroll and tax penalties far in excess of their revenue. Most owners can't afford to absorb a $100 million loss on a regular basis. Most of these teams operate on a budget, and Forbes' calculated value of the franchise doesn't pay a single bill.

They can always raise ticket and concession prices...

Sure. That is a great idea. Maybe when they pay $300-$400 for a couple tickets and concessions there will be an option to just take half of that money spent and just go courtside and hand the cash to Steph so you can get some personal satisfaction from the money spent.

[saltlover]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

Unless their owner has plans to sell soon, $135 million tax is a huge problem. You're adding up payroll and tax penalties far in excess of their revenue. Most owners can't afford to absorb a $100 million loss on a regular basis. Most of these teams operate on a budget, and Forbes' calculated value of the franchise doesn't pay a single bill.

They can always raise ticket and concession prices...

Sure. That is a great idea. Maybe when they pay $300-$400 for a couple tickets and concessions there will be an option to just take half of that money spent and just go courtside and hand the cash to Steph so you can get some personal satisfaction from the money spent.

San Francisco has a lot of money.  The people that can afford to regularly go to Warrior games are making over $250k (no one else has any disposable income after paying for housing).  They already charge a lot, and the prices still rise on the secondary market.  There is definite room to increase revenue at the gate and at concessions.

[dreamgreen]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

No idea how factual those numbers are but lets just say you're correct. Value doesn't = ROI but lets say it's a 10% ROI on value that would mean $260m after paying salaries and no luxury tax. Pay higher salaries and now start paying luxury tax that ROI starts to drop like a rock. Worth it to us fans cause it's not our $ and we want championships. IMO reading about pro sport ownership's in the past the ROI is much less than 10%. Most owners make their money by building up that value and selling it.

[More Banners]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

m

Unless their owner has plans to sell soon, $135 million tax is a huge problem. You're adding up payroll and tax penalties far in excess of their revenue. Most owners can't afford to absorb a $100 million loss on a regular basis. Most of these teams operate on a budget, and Forbes' calculated value of the franchise doesn't pay a single bill.

They can always raise ticket and concession prices...

Sure. That is a great idea. Maybe when they pay $300-$400 for a couple tickets and concessions there will be an option to just take half of that money spent and just go courtside and hand the cash to Steph so you can get some personal satisfaction from the money spent.

San Francisco has a lot of money.  The people that can afford to regularly go to Warrior games are making over $250k (no one else has any disposable income after paying for housing).  They already charge a lot, and the prices still rise on the secondary market.  There is definite room to increase revenue at the gate and at concessions.

And teams are selling advertising on jerseys and other places, like GE with the C's this coming year. That's serious revenue.

[Surferdad]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

Unless their owner has plans to sell soon, $135 million tax is a huge problem. You're adding up payroll and tax penalties far in excess of their revenue. Most owners can't afford to absorb a $100 million loss on a regular basis. Most of these teams operate on a budget, and Forbes' calculated value of the franchise doesn't pay a single bill.

It doesn't but they can take out a long term line-of-credit against the value of the franchise.  For example, my current company has a debt of $325mm and nobody is panicking because the bank knows we will have new products in the next 5-10 years worth more than that in sales annually.

[MBunge]

The franchise was worth 2.6 billions as of february 2017.
How much they are worth now with another title?
Do you think a 135 millions luxuary tax will be the problem?
I say, the owners are doing their math very well.
Worse case scenario, they'll trade Klay for young talents to reload.

Unless their owner has plans to sell soon, $135 million tax is a huge problem. You're adding up payroll and tax penalties far in excess of their revenue. Most owners can't afford to absorb a $100 million loss on a regular basis. Most of these teams operate on a budget, and Forbes' calculated value of the franchise doesn't pay a single bill.

It doesn't but they can take out a long term line-of-credit against the value of the franchise.  For example, my current company has a debt of $325mm and nobody is panicking because the bank knows we will have new products in the next 5-10 years worth more than that in sales annually.

Except the Golden State Warriors aren't going to be making an extra $100 million any time soon.  They're certainly not going to be making it five years from now, when Durant is 33 and Curry is 34.  So, they're going to be paying back that $100 million WITH INTEREST in a future where their revenue and franchise value may have actually decreased because they're not winning any more titles.

Sure, a market like San Francisco can handle a luxury tax better than Oklahoma City but I don't think any NBA franchise is the sort of business that can just take on an extra $100 million in expenses and shrug it off by adding more debt.

Mike

[Fred Roberts]

Back of the napkin math:
Curry $40M/yr
Durant $30M/yr
Klay $18M
Green $17M
Ig  $15
Shaun $8
West $3M???
4 or so Rookie contract guys $6M
Rough Total: $137M / yr for 11 guys
Cap: $99M
Luxury Threshold: $119M

Is this relatively accurate? With min salary players, the payroll should cross $143M. Sounds like they're finally paying up!