Lakers Sale Misunderstanding
I feel like I should say something about this because a lot of people are just flat out wrong. Okay, first off, the Lakers were not sold for 10 billion. That was the valuation. In reality, the Bus family got about half of that. They sold 51% of their 66% in shares. Now, we’re still talking billions here. Still a lot of money, but some misleading headlines floating around out there. Second, perhaps more important, to the LinkedIn influencers copying and pasting yet another post here. You know those guys that are stating that Jerry Bus would have been better off if he invested that money in the S&P 500. Someone needs to take your keyboard. And this is just wrong. The $67 million deal that included a lot more than the Lakers and included the LA Kings. It included the Forum and included a 13,000 acre monster of a ranch in the Sierra Neadas. The Lakers were only about 16 million of that deal. So if we look at that number, that makes the return a lot higher here. Lastly, we have to account for income. You would not evaluate a piece of real estate or a real estate investment without considering what income it is producing. That is a huge part of the equation. You wouldn’t do it there. You definitely wouldn’t do it [Music]
31 Comments
Thanks for the insight Michael 💯
So from what I gathered in the recent MLB scouting video, financial planning is your actual career qualification. Thanks for clearing things up.
Thanks for the clarification. Although, something tells me the ppl who needs this most don’t follow you. 😂
We've crossed the Rubicon, "Well, actually" guy is no longer an annoying know-it-all, he's now a crucial part of understanding basically any news because it's all click bait bullshit. I hate living in the future, take me back 🥲
« Linkedin influencers » are the most pretentious, narcissistic, pricks on the planet. Wouldn’t spend a minute with em.
TALK TO EM!!! 👏🏿
And the Lakers generate a LOT of revenue
Thanks for letting me know about the sale lol, had no idea
Great coverage and editing
They forget the passthrough losses, the additional k-1 income, depreciation benefits, and revenue from the sports teams. I hate these lazy financial advisor posts on LinkedIn purposely missing the point.
This was a breath of fresh air after being bombarded by LinkedIn posts completely neglecting the income produced by one of the most valuable sports teams in the world.
So what is the value of all the items the Buss family got in the deal? Id like to know if they made more off the lakers vs kings vs ranch (if sold).
Also, how much profit are they making? I think this would be a cool video idea to show 'what do owners get out of owning a team/arena/etc' outside of rep. I'd listen to 20-30 minutes of you diving into it.
SPY returns include reinvested dividends btw. They can't just cherry pick data and compare apples to oranges.
It's like comparing tech stocks to industrials, but only on price return.
Industrials are actually pretty close! Maybe it's a little less tax efficient because of the dividends, but you don't have to freak out a couple timea every decade when the market takes a sh*t or tech bubbles burst
Informative. Didn't know that the deal actually $5 billion and the stuff about the original deal (a ranch seems kind of random in conjunction with sports teams). Thanks for the short.
i really like your videos michael, i like the data-driven, nuanced analyses that you do in your videos. you show us what the evidence says, not what the people say. gotta take people’s opinions on linkedin very carefully…
Investbros are cringe, Linkedin investbros are the Avengers of cringe.
Yeah the S&P500 Bros look at everything from an Excel spreadsheet perspective. Even if that whole value thing WAS true how about the unique value of OWNING THE FREAKING LAKERS.
Owning the lakers also paid dividends that they are not accounting for
So what was the actual return given the $16 million investment and throwing the revenue generated by the franchise up until now into the equation?
Please talk about these topics more, learned alot!
and more then half is taxed
Arizona dreaming
Thank you!
💯 not only do you need to include the billions of dollars in revenue The Lakers have produced over the last 45 years, you also need to include the tax benefits owning their professional sports team. You can write off player/ coaches salaries, facilities maintenance, etc as losses to lower your tax burden.
LinkedIn bros posting a verifiably absurd, somewhat business adjacent mistruth is an every hour thing now a days. Never the less, thanks for the added info
I have been losing my mind over this for a while and stopped commenting correcting people…i am not shocked the media is lying about it(by the way they arent wrong they are intentionally lying) they still say trump called white supremacists good people in Charlottesville
What’s the misunderstanding? Oh Americans having the worse financial literacy of all time lol
For the guys that got the numbers wrong, it's no big deal for your part. Just keep flipping your burgers at McDonald's and living in your mom's basement.
I have a feeling that Lakers have a negative income in at least 1/4 of those years? Sports teams are notorious for not turning in income for years, lucky if they break even.
Glad I have been under a rock today only to get this news correctly from you. Kudos for keeping it 100.
When he bought the Lakers, was Jerry Buss trying to beat the S&P500?
Yeah…I had no idea they were sold.