A few months ago Atlanta Hawks owner, Bruce Levenson, put is team up for sale. A group of New York investors bought the Atlanta Hawks for five hundred million dollars. The investment group also bought the operating rights to the Hawk's home stadium. If the group would sales the Hawks right now they would get an estimated 850 million dollars. This has to do with the new TV contracts the Hawks have signed. The Hawks signed a new deal with ABC/ESPN and Time Warner(TNT). A 70% return on their investment is absolutely massive.
I think the value of the Hawks franchise has a lot to do with how they are doing this season. In previous years the Hawks were a very mediocre team in the NBA. This year they are first in the eastern conference. This results in more people wanting to watch them. Including fans at the games and fans on TV. This is why they signed so many new TV deals. I also think NBA teams are a great investment. The NBA is no where near its peak and I think it will continue to grow and prosper.
http://www.forbes.com/teams/atlanta-hawks/
The cost of the team was surprising to me. I know the team is a little less than stellar but 500,000 dollars seems very minimal. Maybe they are just in that bad of shape.
ReplyDeleteI'm a little confused about your numbers. Either both numbers are in thousands, or both numbers are in millions. There's no way they would go from 500 thousand dollars to 850 million dollars. Other than that though, I agree with your reasoning. The past couple of years, the Hawks haven't been a very good team ever since they got rid of Josh Smith. But since then, players like Jeff Teague and Al Horford have really improved and now have the Hawks playing at a really high level. Now ABC, TNT, and ESPN have all signed TV contracts with the Hawks organization because people are going to want to see good teams play, rather than teams that are out of playoff contention. It will be interesting to see if they can keep this up throughout the entire season.
ReplyDeleteSorry men! I had a little typo> I meant five hundred million, it is fixed now, thanks guys!
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