Yesterday, 10:35 AM
(Yesterday, 10:11 AM)TheLeonardLeap Wrote: Yes, because they own a $5.5b stadium. Look at the list of the most valuable teams, and they own the stadium they're in.
Valuation is not the same thing as profitability though. If you have a $5.5b expense, it'll take awhile before you pay off that debt.
Simplified example... You open up a small business. You have $50k, you get a loan for another $200k and you put it all towards a building and equipment. You now have a business that's worth $250k. Next door there's a smaller business that has a building and equipment worth only $100k, but they have no debts because they've been operating for a long time now and have already paid it all off and made back their initial stake. On the first day you pull in $1k and the smaller business pulls in $500. You are not profitable yet, because you spent $250k that you haven't made back yet and still need another $249k. They ARE profitable because they already made back their initial investments and paid off their debts and the $500 is pure profit despite being less than what you brought in.
Kroenke I can assure you is not even thinking along the lines of profitability or the challenging years years following a start up....but I fully understand what you are saying.....His purchase of the team for 775 million..moving to LA and So Fi Stadium has made him an even more wealthier man than he was when he purchased the team..Startup cost is incidental to him..Regardless..this non story about the Bengals maybe moving is just that.. fiction .....The plans we were shown a few months back..were reasonable..it is time for some Paycor upgrades and indoor training facility..compared to other cities and their owners demands ..reasonable and responsible...But..and again I doubt this is even being considered by Katie and her family..if they did move ..there are many cities that would welcome them with open arms and provide them tremendous incentives and facilities and the value of the franchise would continue to grow appreciably..My only sports concerns at this time are our Reds and their lack of hitting and the upcoming draft..we need a guard, DL and linebacker..Have a great day
