[NY Times] N.B.A. Players Union Files Complaint With Labor Board

Thanks for that article, Mango. That, of course, is the conversation the league doesn't want to have -- that the big city franchises need the other teams in the league to play against but don't share the revenues enough to keep them afloat. The league wants the players to pay as much as they can extract to keep the Bucks in the black, instead of having the Knicks do it.

The other thing I wanted to say on the subject is that these franchise valuations are a bit of an artifice. Occassionally, a new owner buys in and you have a market price to look at. But, most of these valuations we're quoting are generated by a model that Forbes or someone put together that reflects a bunch of best-guess forecasting of cash flows and historical relationships. I have to think that a lot of that model is depending on assumptions on how much the owners will win in this CBA.

Supposing that the owners lost big-time in this negotiation and everyone is operating in the red; if they run that model again, those valuations will suddenly drop because the reality didn't actualize as they had forecasted. It's shorthand to just quote those valuation numbers, but most of those aren't reliable until they sell in the marketplace at that price. And, when conditions change, the value also changes.

 

Wonder how they are factoring in the fact that a lot of stars have the "big 3" mentality that Lebron, Wade, and Bosh started. It is bad for the league to have all its top stars distributed within a handful of teams. And its a domino effect. If (when imo) Miami wins the finals, other stars will be forced to bunch up in order to contend. Can you imagine in about 2 or 3 years we could end up with....

- Lebron, Wade, Bosh (Miami)
- Anthony, Stoudamire, D-Will (2012) (NY)
- Howard (2012), CP3 (2012), Kobe (Lakers)
.
.
.
.
.

- Griffin, Durant, Rose (Houston)

I can dream can't I?

 

I would take it even further. the "value" of sports franchises has increased exponetially since the value of tv contracts in the nineties and also the boom in new stadiums and arenas in all sports.

I would bet from 1975 to 1990 that the value of major league sports franchises across the board remained stale with the lack of tv revenue and new stadiums.