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11-03-2012, 01:19 PM
  #92
Roy S
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Quote:
Originally Posted by Captain Bob View Post
Haha. Sure.. It's just a simple understanding of economics.

So tell me why players make so much money that 18 owners are losing money?

Is it because the players have no leverage?
The most important thing for the owners is the net worth or value of their franchise compared to what it was purchased at. From that perspective, most of the owners are doing very well and making a lot of money on paper.

The fact that 18 owners are losing revenue means that the previous CBA is not a sustainable business model for the long term and that is a goal they are trying to fix this time around.

But, that still doesn't mean the players have leverage- the owners have enough wealth that they can absorb those losses without much problem. The players can't afford to lose their income- their shelf life as a player is limited. People with business and financial savvy and hundreds of millions to billions of dollars have no shelf life and are a far rarer commodity than a professional athlete.

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