LeBron's Cavaliers Lost An NBA-High $40 Million Last Season Despite Championship

[Stuart G]

Forbes:

http://www.forbes.com/sites/kurtbadenhausen/2017/01/27/how-lebrons-cavaliers-lost-an-nba-high-40-million-last-season/#1f833547fb11

The Cleveland Cavaliers are the NBA’s defending world champions and on top of the Eastern Conference this season, but LeBron James is frustrated with his bosses, according to ESPN’s Brian Windhorst. The reason: spending on the team's payroll.

"I just hope that we're not satisfied as an organization," said James Monday night after the team lost its fifth out of seven games. The Cavs continued their slide two nights later with a home loss to a below-.500 Sacramento Kings team.

The reality is that owner Dan Gilbert has spent money at almost an unprecedented level. Last season’s $115 million payroll triggered a $54 million luxury tax bill. Add in benefits, cash involved in trades and the team’s share for total NBA player costs to reach the mandated 51% of leaguewide revenue and Gilbert spent roughly $185 million last season on his roster.

It was the second biggest outlay in the history of the sport behind only the Brooklyn Nets' ill-fated $205 million 2013-14 season, which included a $90.6 million luxury tax. The Nets reached the second round of the playoffs that year before their recent plummet to the bottom of the league.

Gilbert’s massive commitment to spend whatever’s necessary to win a title led to a loss of $40 million last season by Forbes’ count in the sense of earnings before interest, taxes, depreciation and amortization. Forbes is wrapping up its annual look at the business of the NBA scheduled to be released Feb. 14, and the Cavs are one of only a handful of teams to lose money last season. Their loss was nearly four times greater than any other franchise, despite the windfall from hosting 10 playoff games.
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Comment from Stuart G.....from the movie "The Producers"...."When you got it, flaunt it.."

[scscholar]

1. How much of this will we end-up having to pay? (ntxt)

[ProfessorGAC]

2. Not Believing It

Analysis is convoluted and doesn't mean they actually took a cash loss nor does it include the added valuation of the franchise given the championship and profile
That said, James should stop whining

[Yavin4]

4. A multi-millionaire is fighting with a multi-billionaire.

The world has much bigger problems.

[ProfessorGAC]

3. By The Way

Good to see you back, Stuart!