MLB Network Radio: Arte about to sell?

[Docwaukee]

and in my opinion, if anything derailed the sale of the team last year it was the uncertainty of the TV deal.  There was probably a fair amount of distance between what the seller and buyer felt that should be valued at.  If that delta was say 50m per year and the valuation of the team is like 10x then we're talking about half a billion dollars difference.  

Even if that total came up 100m between last year and this year it's still a win.  

And another thing.  The net value that Shohei brought to the franchise was gone last year.  Or marginal.  

[Inside Pitch]

10 hours ago, johndw52 said:

Smells like a buyers market right now. With Shohei and his cast of millions gone, Mike T and Rendon contracts sucking up payroll ,  Arte's is probably going to take a significant hit from the 2.5B value. Hope I'm wrong. After years of delusional hope, my conclusion is that Arte is the Barney Fife of owners. All talk with no bullets.

The roster depreciation allowance makes existing or even added payroll a non factor, it may actually increase the value given it gives the owner a bigger depreciation.

https://greenberglawoffice.com/roster-depreciation-allowance/#:~:text=The RDA permitted a team,income on an amortized basis.

https://sabr.org/journal/article/the-roster-depreciation-allowance-how-major-league-baseball-teams-turn-profits-into-losses/

This is the most current RDA allows teams to come close to depreciating 100% of the purchase price over the span of 15 years...  It's a huge tax win.

 

[CaliAngel]

17 hours ago, Taylor said:

Buying a cyber truck proves you have zero intelligence.

I guess it's out of your realm of possibility to consider that people sometimes buy things just for fun, regardless of their practicality?

Dunno about anybody else, but 0-60mph in less than 3 seconds sounds like quite a bit of fun to me. 

Maybe consider therapy to tune up that 'tude. 

[Taylor]

Just now, CaliAngel said:

I guess it's out of your realm of possibility to consider that people sometimes buy things just for fun, regardless of their practicality?

Dunno about anybody else, but 0-60mph in less than 3 seconds sounds like quite a bit of fun to me. 

Maybe consider therapy to tune up that 'tude. 

 

[ELEVEN]

[Inside Pitch]

18 hours ago, Taylor said:

Buying a cyber truck proves you have zero intelligence.

I haven't followed it's path to actual production, what makes someone stupid for buying the Cyber Truck? Are they just bad?  I can't see myself going full EV yet.  Hybrids have really come along nicely.

If the Cyber Truck were a baseball player, who would it be?

[tdawg87]

Just now, Inside Pitch said:

I haven't followed it's path to actual production, what makes someone stupid for buying the Cyber Truck? Are they just bad?

If the Cyber Truck were a baseball player, who would it be?

Rendon.

[Inside Pitch]

Just now, tdawg87 said:

Rendon.

LOL!  So, reliability issues.  

Hopefully they don't start at 38 mil.

[Taylor]

27 minutes ago, Inside Pitch said:

I haven't followed it's path to actual production, what makes someone stupid for buying the Cyber Truck? Are they just bad?  I can't see myself going full EV yet.  Hybrids have really come along nicely.

If the Cyber Truck were a baseball player, who would it be?

Just do some Google searches into how they're designed and what it takes to maintain a Cyber Truck. Plus it looks f'ing stupid.

[tdawg87]

It looks like a Nintendo 64 polygon ass car.

[Docwaukee]

It looks like they tried to build a delorean in minecraft.  

[Lhalo]

I know multiple successful people who have purchased Cybertrucks. One has a founder's edition being delivered soon.

If I had to guess, Taylor probably drives a fucking pink Nissan Leaf.

[Dtwncbad]

I just saw one for the first time in person.  One drive by near my house a couple days ago.  It’s sure stands out as different.

[Dtwncbad]

Just now, Lhalo said:

I know multiple successful people who have purchased Cybertrucks. One has a founder's edition being delivered soon.

If I had to guess, Taylor probably drives a fucking pink Nissan Leaf.

I would guess 7 year old Prius.

[Inside Pitch]

34 minutes ago, Taylor said:

Just do some Google searches into how they're designed and what it takes to maintain a Cyber Truck. Plus it looks f'ing stupid.

It def looks stupid. 

 

[tdawg87]

22 minutes ago, Lhalo said:

I know multiple successful people who have purchased Cybertrucks. 

[Lazorko Saves]

5 hours ago, Inside Pitch said:

This is the most current RDA allows teams to come close to depreciating 100% of the purchase price over the span of 15 years...  It's a huge tax win.

Oh no, not the moronic "depreciation is a benefit to business owners" nonsense again.

Does the "Award-Winning Attorney" in his article explain what depreciating purchase price does to your capital gains tax when it comes time to sell the team?  Oh he didn't did he?  So he lied by omission to push a stupid myth about depreciating nontangible assets are some special carve-out that benefits sports team owners.

And he even implies that player salaries can be double deducted as operating expense and depreciable asset, with no offset.  This is an outright lie.  The player contract depreciation has an offset in the capital gains tax the owner will pay when he sells the team.  The capital asset gets written down to zero by year 15.  When the owner sells the team, the cost basis is reduced by that same amount.

Note to self: Do not hire Martin J. Greenberg to do any work for me.  Not even to mow my lawn.

[Stradling]

Asked my buddy about Arte selling, the exact quote, “don’t hold your breathe” 

[tdawg87]

3 minutes ago, Stradling said:

Asked my buddy about Arte selling, the exact quote, “don’t hold your breathe” 

Very sad.

[jsnpritchett]

17 minutes ago, Stradling said:

Asked my buddy about Arte selling, the exact quote, “don’t hold your breathe” 

So your buddy misspelled breath?

[Taylor]

39 minutes ago, Stradling said:

Asked my buddy about Arte selling, the exact quote, “don’t hold your breathe” 

Did he say "breath" or "breathe"?

[Taylor]

21 minutes ago, jsnpritchett said:

So your buddy misspelled breath?

Dammit

[Slegnaac]

14 hours ago, Docwaukee said:

my guess is he's gonna get about 3b.  

here's some probably oversimplified fun with numbers.  The Angels operate at a loss almost every year but since they don't have to disclose their financials, who's to say that Arte and/or others in his family haven't been taking substantial bonuses or getting hefty salaries every year?   

Arte puts 20m in his pocket?  Angels go from a 10m profit to a 10m loss.  

Also seems interesting that they often claim to be operating at a loss when they have zero debt service.  

Point is, what the team looks like on the field at the time of a sale probably doesn't impact the valuation of the franchise by all that much.  

Any success on the field on a year to year basis probably just translates into straight cash into his pocket as opposed to an overall increase in franchise value.  Meaning that he probably didn't pay disney any more money because they won a world series the year before.  

You can bet that baked into the sales price is the opportunity to draw 3 million fans every year whether they're currently doing that or not.  

Which is basically what Frank McCourt did with the Dodgers.

[Lazorko Saves]

5 minutes ago, Taylor said:

Dammit

What word are you trying to spell there?

[jsnpritchett]

2 minutes ago, Lazorko Saves said:

What word are you trying to spell there?

 

Breathe.