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12-17-2012, 05:53 PM
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Originally Posted by mesamonster View Post
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!!!
Well if he has to borrow 100% of the purchase price the league will never sell him the team. If the other expenses are indeed 6 million this season, the league is really taking it. This Phoenix episode not costing them anything, would have to be a miracle

Last edited by Confucius: 12-17-2012 at 06:13 PM.
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