Phoenix LXVI: Get Your Kicks On Thread LXVI
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12-17-2012, 05:41 PM
Join Date: Oct 2011
Location: Scottsdale, AZ.
Originally Posted by
Stix and Stones
That's what I thought as well. 15 million per year to run the arena. If the Yotes miss an entire year he has to give back about 2.5 million. Giddyup what's the hold up?
So for 2.5 million per year he can forget about the Yotes entirely and just accept 12.5 million per year to manage the place. Again I couldn't sign fast enough. The paper might combust.
You forgot one very important expense- cost of capital! The money needed to purchase the team costs a lot of money each year. Lets just say that it is junk bond quality so a cost of capital could well be 5-8%. At 5%, the cost of the money is ($170MM purchase price) is 8.5MM per year. The coaches and and a skeleton staff still cost $6MM++ so tell me where is GJ making money without his team playing? Real answer: he isn`t!!!
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