the minority owner of the team is a businessman from my hometown and a family friend. If people don't think the Hornets are in a little financial wad, then they are just choosing to look at only what they want to see. There are definitely some issues there. 1. Poor attendance 2. No major corporate sponsors 3. No naming rights sold to the Arena 4. Cheap-O owner The Hornets asked the NBA for a loan for a reason.
"""The luxury tax is something that all teams are concerned about, not small-market teams, not teams in New Orleans, not teams owned by George Shinn, but all teams are concerned about the luxury tax because it is punitive," Weber said. "I think the real question is if we have to go over the luxury tax to be competitive, will we? And the answer is yes. At the same time, you have to ask yourself the question if you don't have to, we won't. ... A lot of the speculation is that (getting under the luxury tax) is the priority, and it's not." Who better to know the financial condition of the New Orleans Hornets than the New Orleans Hornets. The Hornets had an estimated operating income of 3 million last year: #28 New Orleans Hornets - Forbes.com You said the Hornets didn't have the "support." The support is there...all 98+ of it fan wise. Even attendance factored into total revenue, gate receipts only account for 25% of the Hornet's total annual revenue.
I agree with 2,3 and 4. Attendance wasn't an issue last year. It was the previous year. ""We accepted the loan that the NBA made available to all its teams to keep our options open in case these funds are needed in the future, " Weber said in a statement. "The opportunity to secure this kind of loan during such tough economic times shows the strength and confidence that financial institutions have in the NBA." ""We are experiencing unprecedented success in ticket sales and sponsorships, and by no means was this loan acquired to subsidize our daily operating expenses." "Weber said the Hornets were in sound financial shape but were considering the loan because of its surprising availability. "It's not needed, " Weber said. "It's a facility (the NBA) is setting up not because teams need it, it's because teams can't go out on their own and do it. Banks have been so incredibly restrictive." New Orleans Hornets are fiscally sound, but NBA loan arrangement too sweet to pass up - Hornets Beat
The support to sustain the team is not there, they should be selling out every game if the arena is that much smaller. I never said they were dirt broke, but definitely in a tight spot and over the salary cap, which doesnt help.
In team VALUE....value is not whats at play here. The long term viability of the Hornets rest's on the team's ability to make money....They are currently succeeding at that.
Sorry, but the messages with quotes from people inside the front office are not valid to me, imo. What's he supposed to say on record. "OMG, WE'RE GOING TO FOLD," said Hornets owner George Shinn. "We're as poor as California." Of course, they will spin it. The team is doing OK, but had Chris Paul not been drafted to this franchise, they'd already be dead and gone. And when one player dominates whether or not you have a franchise, you're in trouble.
SHould the following teams move beacuse they are not selling 100% of their tickets? The hornets sold 98.7 PERCENT OF THEIR TICKETS. Ten teams sold sub 90%. ONE THIRD OF THE LEAGUE! 6 LA Lakers 7 Detroit 9 Oklahoma City 10 Chicago 11 New York 12 Orlando 13 Cleveland 14 San Antonio 15 Houston 16 Golden State 17 Toronto 18 Miami 19 Denver 20 Atlanta 21 LA Clippers 22 Washington 23 Milwaukee 24 Philadelphia 25 Indiana 26 Charlotte 27 New Jersey 28 Minnesota 29 Sacramento 30 Memphis
I never said they should move, I said it was a good move to trade Butler because it helps with their cap and that they dont have the support to pay the luxury tax every year. That was my statement and I believe it to be correct. Never said they should move
So then, who can judge a NBA team's financial viability? People with no knowledge of the inner financial world? Won't disagree...but it's irrelevant....Chris Paul was drafted to the franchise. That's like saying Phil Mickelson would have won more majors if not for Tiger Woods...well no kidding...but its still irrelevant because Tiger is still there. And when one player dominates whether or not you have a franchise, you're in trouble.[/QUOTE] The only reason the franchise was in "serious" trouble was because of Katrina. You think OKC would have supported the 12 (or whatever too lazy to look it up) season without CP3?
