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Ha! A team with young players.
http://www.forbes.com/home/free_forb.../0212/084.html
It's How You Play the Game
Kurt Badenhausen 02.12.07
Led by owner Peter Holt, a war hero and recovering alcoholic, the San Antonio Spurs have become the model NBA franchise.
For the past couple of seasons the best way for a pro basketball player to make the evening news has been to start a bench-clearing brawl or run up into the stands to attack the fans. Not so in sleepy San Antonio, the league's third-smallest market. It's home to the talented and very gentlemanly Spurs, who have won three NBA les in the past eight years and have the highest winning percentage among major professional sports teams in the past decade. The team is worth $390 million, 11% higher than last year and $37 million above the league average.
Last season the team posted operating income (in the sense of earnings before interest, taxes, depreciation and amortization) of $11.7 million on revenues of $122 million, compared with $6.9 million of $112 million for the average NBA team. Fans have filled the AT&T (nyse: T - news - people ) Center to 98% capacity the past four seasons, versus 89% for the rest of the NBA, and have rented all of the 60 luxury suites at prices ranging from $160,00 to $240,000 a season.
A big reason has been stability. Gregg Popovich, now in his eleventh season as coach, is one of only two NBA coaches in place more than four seasons. (The other is Jerry Sloan of the Utah Jazz.)
And Spurs owner Peter Holt, 58, a Vietnam hero--Silver Star, three Bronze Stars, Purple Heart--who before rehab in 1981 had a long history of alcohol abuse. He does not like controversy. He refuses to spend big bucks on prima donna stars and has instead built his team with young players who excel more on the hardwood than on the police blotter.
To date no Spur, for example, has gotten in trouble for shooting a gun outside a nightclub, as Golden State Warrior guard Stephen Jackson allegedly did earlier this season.
Forward Tim Duncan, drafted in 1997, is a role model both on and off the court and has twice been named the league's MVP. Point guard Tony Parker has been one of People magazine's "50 Most Beautiful People" and is the fiancé of desperate housewife Eva Longoria, whose family lives in San Antonio.
Rather than sign the flashy college underclassmen for whom most NBA teams so ravenously compete, Holt goes overseas for 70% of his draft picks, who continue to play for their foreign teams until they prove themselves. The Spurs drafted Argentinean guard Manu Ginobili, for example, in 1999 but didn't sign him until three years later. Ginobili was an NBA all-star within two years. "We look at character first, then skill," says Holt, whose team now includes players from Slovenia, France and the Netherlands.
Holt reinforces the team's untarnished image by pumping money into charities. The Spurs Foundation has contributed $10 million in cash and gifts to help the children of southern Texas over the past two decades. "They have exemplified what a team can mean to a community," says NBA Commissioner David Stern.
It wasn't always this way. In the mid-1990s the franchise was in disarray. The Spurs had 20 owners (mostly local businessmen), were struggling to make money and had plenty of controversy, thanks to bad boy Dennis Rodman, who was traded to the Chicago Bulls in 1995. The Spurs were playing in an outmoded arena built for football, depriving the team of the lucrative luxury-suite income other nba teams were starting to enjoy.
Holt, whose great-grandfather invented the first track-type tractor (which led to the formation of Caterpillar (nyse: CAT - news - people )), came to the rescue in 1996. He had taken over his father's Cat dealership in southern Texas in 1984 and had built it into the largest in the U.S. Holt bought a controlling 32% of the team in a deal that valued the Spurs at just over $75 million. Holt fired the old coach and persuaded Popovich to add coaching to his general manager duties. "I didn't know anything my first year," says Holt. "I was a Caterpillar man."
Popovich drafted Duncan a year later, and the team won its first le in 1999. On the day the Spurs were handed the championship rings for their first le, the public was voting on whether to put up taxpayer money for the bulk of a new $175 million stadium. The plebiscite won with 61% of the vote. Opening in 2002, the new AT&T Center helped revenues climb 50% that year, and the team turned its first operating profit ($19 million) after three moneylosing years.
For two of the past three years ESPN magazine has named the Spurs the best franchise in sports, based on a composite ranking of such things as fan feedback, championships and owner loyalty. The Spurs could hold on to that le-- barring any fistfights at half-court.
Ha! A team with young players.
In the business that is NBA ownership, the value of the Spurs' franchise increased 11% because they got rid of Rasho's contract and they didn't add any long-term contracts to the books. The value of the franchise wouldn't have risen as much if the Spurs had won the championship but to do so had to add long-term money.The team is worth $390 million, 11% higher than last year and $37 million above the league average.
Losing > Long-term contracts
If the Spurs can only cook up an $11.7M figure, it's scary to think how much Holt actually makes.Last season the team posted operating income (in the sense of earnings before interest, taxes, depreciation and amortization) of $11.7 million on revenues of $122 million, compared with $6.9 million of $112 million for the average NBA team.
Fact checking needed.And Spurs owner Peter Holt, 58, a Vietnam hero--Silver Star, three Bronze Stars, Purple Heart--who before rehab in 1981 had a long history of alcohol abuse.
Interesting.He does not like controversy.
Holt's initial investment was $24M. That investment is now worth $124M.Holt bought a controlling 32% of the team in a deal that valued the Spurs at just over $75 million.
On the increase in the franchise's value alone, Holt has made $100M in his time as owner of the team. And some fans still look at Holt as a guy doing a favor for San Antonio
Holt fired the old coach and persuaded Popovich to add coaching to his general manager duties.
Yeah, and Holt cured the common cold, taught Duncan the bankshot and is the inspiration behind Manu's hustle.
Was?"I didn't know anything my first year," says Holt. "I was a Caterpillar man."
So basically, Holt has more than doubled his net worth while owning the Spurs, yet this team isn't allowed to go after players who don't have expiring contracts.Opening in 2002, the new AT&T Center helped revenues climb 50% that year, and the team turned its first operating profit ($19 million) after three moneylosing years.
Amazing.
Damn a bussiness man for making money.
Good thing people don't have that at ude about other businesses in this country.
So there's nothing wrong with ing over your loyal customers as long as you make a buck?
Plus, keep in mind that these estimates are much lower than what the franchises sell for. The Sonics, who are supposedly worth $268M, got sold a couple months ago for $350M. The Grizzlies, who are supposedly worth $313M, are on the market for around $450M.
The Spurs open market value is somewhere in the neighborhood of $550M at the very least. That means Holt stands to profit between $150M and $200M as of today.
And Pop had to beg Holt to give Parker $2M to keep from letting him become a restricted free agent?
Huh?
Not to mention you know there is some cooking of the books going on. That reported revenue is lower than what Holt's really making.
Im a season ticket holder since 89.So there's nothing wrong with ing over your loyal customers as long as you make a buck?
Bought lots of merchandise, and he isn't " ing me over"
Christ, are you always such a miserable person?
lord.
So, you're okay with the Spurs not investing in the players needed to surround Duncan for another run at a le just so Holt can make a little more profit when he sells the team in 2008?
And honestly, I could give a how much you've bought or paid for. That doesn't make Holt Cat any more noble.
Yeah, especially since the Spurs have to give a percentage of the profits back to the city. Those books are cooked so much I'm surprised the paper doesn't melt.
60 sold out suits, sold out arena every game, merchandise sells like crazy, complete control over the AT&T Center, no other game in town competing for sponsors and you are telling me the Spurs made $11M? Rii-i-iiii-ii-ight
walmart does
bill gates does
Yeah, but you don't see either one of them crying to their customers about the escalating costs of running their business and trying to 'remain profitable', like you hear about all the pity stories in the E-N about how Holt and the team can't afford to go over the lux tax because it would be crippling financially
Its his business.So, you're okay with the Spurs not investing in the players needed to surround Duncan for another run at a le just so Holt can make a little more profit when he sells the team in 2008?
And honestly, I could give a how much you've bought or paid for. That doesn't make Holt Cat any more noble.
If you were in his shoes, youd do the same thing.
Glad you don't give a , but you asked about loyal customers, and I was describing what some loyal customers do, buy lots of merchandise and go to lots of games.
Whatever.
no you have lawsuits against walmart how they are cheap with their employes insteadYeah, but you don't see either one of them crying to their customers about the escalating costs of running their business and trying to 'remain profitable', like you hear about all the pity stories in the E-N about how Holt and the team can't afford to go over the lux tax because it would be crippling financially
and I have heard stories if you do not suck up to bill gates you get a pink slip if you work for him
No, I'd be going for ring #6 of the Tim Duncan era right now, even if it cost me a little in luxury tax penalties.
I don't give a about what you're doing, because your sheep mentality about dripping the corporate Cat kool-aid doesn't make Holt any less of a bull owner.
Just promise me you won't cry like a little girl when the team moves to Anaheim or Oklahoma City in 2008.
ahf did you predict that david robsinson would bolt because the spurs were to cheap?
Wait. Not one person thinks that the New ing York Knicks being listed as the most valuable NBA franchise despite losing $40 large last season is worth a comment?
Ducks, you crack me up. Yeah, Wal-Mart sucks. But you don't hear the Waltons crying about operating costs eating into their billions in profits.
And that cracks me up about Microsoft. Do you actually believe that ? No one except those working in corporate at the VP level deal with Gates. I've got several friends working there, none of them have even met the guy
Gates didn't get where he is by surrounding himself with kiss asses, he did it by surrounding himself with smart people and letting them do their damn jobs.
What does that have to do with Holt ing the city and the team (as far as trying to win another ring) over?
Wait. Not one person thinks that the New ing York Knicks being listed as the most valuable NBA franchise despite losing $40 large last season is worth a comment?
That's what happens when you're in the top media market in the country...Wait. Not one person thinks that the New ing York Knicks being listed as the most valuable NBA franchise despite losing $40 large last season is worth a comment?
dude I talked to one of his former employes yesterday in yuma
that is what he said
I know he stole apple's operating system and made windows
he is just one lucky greedy thief
The Spurs are spending the money, they are just spending it on a bunch of dip s.
, everyone knows about Apple. And I'll call bull on the former employee thing. What did he do at Microsoft? Humor me, how high up was he and what was his job le.
I've got a friend in HR at Microsoft, I'd love to check his story out. Because once you're in at MS, you're not out unless you leave on your own or are sucking ass at your job. And in that case, you don't get canned because you're not sucking up to Gates, you get canned because you're not performing.
time for holt to cash in
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