Fair enough but has anyone done the due diligence to see if one would even be sustainable here? Chances are they cannot and will cost us the taxpayer money subsidizing them. Here is a sample of a facebook conversation I had with Councilman Johnson and just one more reason why he and others don't seem to get it.
It comes down to basic math and basic business.Dan Johnson everywhere there is a professional team in America they are the most liked thing in that city.
Ed Springston The issue isn't whether they are liked the issue is whether they are affordable. I like lots of things but that doesn't mean I can pay for them all.
Dan Johnson well watch them on TV and buy a big mac when McDonalds advertises on the game and you will be helping. A pro teams market is a lot bigger than Louisville and it will be successful and not subsidized by tax dollars they pay tax dollars
Ed Springston 40% lose money now in better markets than Louisville. How do you say they pay tax dollars. 40% don't pay for sure the other 60% are subsidized (Note this figure was a rough estimate before I did the research after this and found that the losing teams are greater than 56%)
Dan Johnson Who says well have one of the 40 percent and the market as it is drawn will be tenth in the nba,
Ed Springston there is no basis of truth to back that statement up
Dan Johnson just as there is no basis of truth to back you up
Ed Springston No basis of truth to back me up? Have you studied NBA teams and their financial's? The FACT is that 40% are losing money which means they pay no taxes. That sir is the truth. To deny that means you haven't done your homework.
Dan Johnson You are not an owner and the players will pay taxes on their labor in this town that will amount to over 6 million.
Ed Springston while we subsidize the team owner with $10 million or so? A net loss of $3 million. It really is basic math......
Dan Johnson you DO NOT KNOW UNTIL WE HAVE ONE AND IT HAS BEEN IN BUSINESS. I HAPPEN TO KNOW THIS ONE WILL BE WILDLY SUCCESSFUL FOR THE OWNERS BECAUSE THEY INTEND TO BROADCAST THIS TEAM TO THEIR COUNTRY WHICH IS BIGGER THAN OURS BY FAR. IT WILL MAKE MONEY.
Ed Springston You just stated the obvious Dan. YOU DO NOT KNOW. I love the caps as it says a lot about an open discussion and your ability to handle it. If one does not know should they not research all available information and make an educated calculated decision on whether it will work or not? You just stated you DO NOT KNOW UNTIL WE HAVE ONE AND IT HAS BEEN IN BUSINESS. That sir explains the whole situation. I don't want my tax dollars used for a pipedream based on that mentality. And neither do the majority.
Why would I say that? Because it is documented that most NBA teams lose money even after receiving tax incentives from the State. While many would contend that I am wrong here are some basic facts.
17 of 30 teams lost money in 2010 The Business Of Basketball, 2011. Or perhaps we can read this article. Forbes ranks NBA team's value, most lost money KING5.com Seattle Sports News and Information.
Anyone remember our quest to land the Charlotte Hornets? They ultimately went to New Orleans because they had an arena already available. Those who wanted the KFC Yum arena built even used this as a reason why we needed a new arena of our own. To get an NBA team.
Well the Hornets have already all but folded as the NBA bought the Hornets themselves last year at a cost of $310 million. Which was an immediate loss of $30 million as the Hornets only have an estimated value at $280 million.
This after the Hornets lost money yet again last year of $6 million.
Why did the Hornets move in the first place? Because the people of Charlotte denied a referendum to build a new arena for them. The owners said they needed to relocate to avoid millions of dollars in annual losses, in part from drastically declining attendance.
Notice the words "drastically declining attendance." If this was the excuse and they could not make money because people did not want to see the product they offered, how in the world would a multi million dollar new arena paid for with our tax dollars change that fact?
No the owners wanted public funds to subsidize them with a new arena for their private business. It would give them bragging rights but be a poor decision by our officials with our tax money. It is their inherent problem to provide a place for their teams to play and market. It is not the problem of us citizens to provide a building for each and every business that wants one. Hence a private business not a public one.
Ultimately the Hornets ended up in New Orleans even after we offered tax incentives only to become a burden there as well. They went there because Gov. Mike Foster promised and delivered legislative approval of millions of dollars in incentive expenditures for the team: $10 million to upgrade the state-owned New Orleans Arena, which was empty at the time thus not having to schedule against a team like U of L, plus several million more to be generated each year from the New Orleans area hotel tax. USATODAY.com - Owners approve Hornets' move to New Orleans.
Yep public tax money went to subsidize the Hornets who ultimately never made a dime for the tax paying citizens and had to be taken over by the league itself. Ultimately many believe the league will now disband the Hornets and send the players to other teams.
So much for the New Orleans investment.
This is just the tip of the iceberg on this story folks. I can write and cite many other examples but you get the drift.
The NBA was not interested in Freedom Hall and wanted anew arena in the first place. Now what is the incentive for them to play at Freedom Hall with a new KFC Yum arena downtown? They want control over scheduling and they cannot obtain that at the new arena because U of L has that control right now.
Speaking of which has anyone ever noticed that even U of L in a college sports town cannot fill the seats at Football and basketball in most cases without free ticket giveaways?
That isn't conducive to a good business model and certainly is just one more example of why we cannot afford an NBA team. If we cannot afford a college game thanks to this low wage service economy Abramson built, then we most certainly cannot sustain an NBA team in a league where most lose money without tax dollars.
Sorry Councilman Johnson you can have your dream. We simply cannot afford to pay for your dream.
Some of us live in the real world......