The Clippers recently conducted a financial audit during the offseason, and the accounting firm issued a financial report.
The report shows that the Clippers are in good financial condition and turned a profit in the 2009-2010 season, making a profit of more than 5 million US dollars!
The market value increased by 60 million yuan, reaching 360 million yuan.
No wonder Rosser called Min Congda very excitedly after the financial report came out and said he wanted to report some good news.
Hearing the word "good news", Min Congda's head almost exploded, and then he looked at the financial report sent in the mailbox:
$5 million profit!
A profit of 5 million US dollars is not a lot for a team with a market value of more than 300 million US dollars.
However, the current economic background of the United States is a recession. Last year, the total losses of NBA teams reached a huge US$400 million.
This is equivalent to an average loss of 13 million per team. Under such circumstances, the Clippers were able to buck the trend and make a profit of 5 million US dollars, which is already very remarkable.
Moreover, the Clippers are not only profitable, but also entered the playoffs, which is a great benefit to the team's valuation.
Because excellent players are the team's best assets, the guarantee for future ticket sales and increased ratings.
Coupled with the fact that the entire NBA is gradually repairing their losses, the Clippers' market value has also increased, by as much as 60 million.
This US$5 million also played a role in increasing the valuation. It proved to the capital market the Clippers' profitability and was a weather vane.
Although at the end of the season when the market value dividend was settled by the system, Min Congda already knew that the Clippers' market value had increased by 60 million.
But when he actually saw the financial report, Min Congda still felt hurt.
Min Congda evaluated the investment projects he made last season:
The documentary "Basketball and the Gays" invested 10 million, and the current actual income is 30 million. There are also invisible goodwill and traffic bonuses. It is not known what kind of benefits it will bring in the future.
Failed miserably.
The "Red Head Boots" restaurant attracted Anschutz's investment, and the $500,000 loan was fully paid off.
Not only that, the bank also gave the Clippers a new working capital credit line of US$20 million, which can be loaned at any time.
Now Red Head Boots has become the star restaurant of Staples, and the revenue is non-stop because Staples plays so many games.
Failed miserably.
The "Three Treasures Plan" is currently being implemented enthusiastically. According to Fan Chen's report, the Shanghai Youth Basketball Tournament has been organized in August.
However, no talented basketball teenagers have been found so far. Let alone the NBA, the CBA is quite difficult.
Cash flow crusher in the next five years, but the plan is implemented late and has not yet entered the loss stage.
It takes persistence.
The "Siku Plan" is not an investment project because there is no capital cost. It all depends on Min Congda's words.
The core purpose is to use NBA-Batman to attack the Clippers' goodwill, but the current results are average.
Moreover, the backend is about to explode with private messages every day wanting to advertise and collaborate.
Min Congda felt his head hurt even after looking at it.
However, he still insists on updating it as one of the joys of life.
Neither failure nor success.
"Afanggong Plan", long-term investment, the second ultimate weapon of the Clippers' destruction plan.
Everything is still under imagination. Based on several exchanges with Anschutz, he believes that if he wants to build a new arena, he should consider buying the Great Western Forum Arena first.
Because in the entire Los Angeles area, the area near the Great Western Forum is the most suitable for a new arena.
It can complement the Great Western Forum and become a new sports and entertainment center in Los Angeles in the future.
Min Congda is actively promoting this idea, but he won't be able to do it for a while.
Because if you want to buy it, others are not willing to sell it. Buying an arena depends on the timing.
In the bud, Min Congda's hope lies.
These plans are currently either under implementation and unable to show results.
Either it's already a disastrous defeat, and Min Congda can't end them yet
It is said that it is not easy to make money by investing. Why does Min Congda think it is not easy to lose money by investing?
In addition to investment, Min Congda increased the team's ticket prices, and the box office revenue last season was very good.
This season hasn’t even started yet, but season ticket renewals have already reached 120%, exceeding last season.
That is to say, the season hasn't even started yet, and the Clippers have already received tens of millions of liquidity!
This makes Min Congda very desperate. Should we increase the wages of Clippers employees again?
No, the same trick system is no longer allowed. It is obviously against the rules of the market for you to keep adding.
Give players better hotels and better transportation during the summer league?
No, it won't cost much at all. Spending tens or hundreds of thousands of dollars is simply not enough in the face of tens of millions of dollars.
Seeing that the income will be more and more, but the place to spend money will be less and less.
Either you can’t spend it, or you can’t spend it at the moment, or you can get back more after spending it.
Min Congda was in a hurry at home and was not in the mood to cook, so he ordered takeout every day.
This profit of 5 million US dollars is really eye-catching. With 5 million dollars, there is no way to defeat it?
The Clippers are currently in an embarrassing period in terms of capital expenditures, because the team's biggest expense is actually the luxury tax.
For example, the Cleveland Cavaliers still suffered losses last season despite having LeBron James as a ticket-selling weapon.
It's not because their income is not high enough, but because they spend too much on player wages and pay too much luxury tax.
Over the past four years, the Cavaliers have paid $71 million in luxury taxes in order to build a championship lineup for James.
The average tax payment alone is close to 20 million per year. All the profits are used to pay taxes, and there is nothing left.
The Clippers are different. Their salary situation was very healthy last season.
This season, Min Congda's two big contracts have been locked up, which has locked up the space.
In the future, when players such as Curry, Harden, Gasol and others face contract renewals, they will definitely sign over the cap.
By then, it is certain that the team's total salary exceeds the luxury tax line, and the team will have to pay luxury tax to the league.
For every dollar over, there is a dollar in tax.
When the luxury tax rules were first implemented in the 2002-2003 season, the Portland Trail Blazers paid $52 million in luxury tax!
The salary cap that year was only $47 million. It can only be said that the Blazers boss was really rich and willful.
When the Clippers' various contract renewals come, Min Congda will definitely make the Clippers' luxury tax explode!
By then, Min Congda does not believe that the Clippers will not suffer losses or go bankrupt.
The problem is, judging from Curry's contract extension, at least it will have to wait until 2012, which is still two years away.
In the past two years, Min Congda couldn't just wait without doing anything, right?
This $5 million is so eye-catching, how should we think of ways to get rid of it?
While Min Congda was thinking hard, the league office called him.
They informed Min Congda that after the judges' selection, he successfully won this year's James Walter Kennedy Citizenship Award.
Let him go to New York to receive the award!
Min Congda almost forgot about this incident. He only remembered the $50,000 donation that made him extremely heartbroken!
He was scared, so he called David Stern and asked, "I'm just going to receive the award, right? Do you want to make a donation?"
Stern said: "I'm just here to receive the award. The foundation has begun normal operations. If you want to donate, we won't stop you."
No, I don’t want to. I’d better support the development of Chinese youth and children’s basketball.
Now that the headquarters has sent out the invitation, Min Congda, who has been sitting at home thinking about investment options, can only go downstairs and take a walk.
He asked the system on a whim: "Can I donate the team's 5 million profit to the African Children's Basketball Development Foundation?"
【cannot. 】
"I am Gan Liliang! There is no love at all for this system."
(End of chapter)
