Potentially bad news for those hoping MLSE will spend more freely

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Old 04-02-2009, 12:34 PM   #1 (permalink)
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Default Potentially bad news for those hoping MLSE will spend more freely

Of course, everyone is feeling the pinch, but...

reportonbusiness.com: Teachers' fund posts 18% decline

Quote:

BOYD ERMAN

Globe and Mail Update

April 2, 2009 at 10:25 AM EDT

Toronto — Ontario Teachers' Pension Plan said it posted an 18 per cent negative return in 2008 as stocks slumped and credit portfolios were hit.

Teachers said total assets plunged to $87.4 billion from $108.5 billion at the end of 2007. That leaves a funding shortfall of $2.5 billion, the fund said.

The funding gap resulting from the year's losses may grow by almost $20 billion over coming years unless interest rates or investment returns rebound.

“It's a sobering year,” said Jim Leech, head of the pension plan manager. “We're taking this hard but 2008 wasn't like any other year.”
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Old 04-02-2009, 12:35 PM   #2 (permalink)
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sell your shares of mlse then
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Old 04-02-2009, 12:42 PM   #3 (permalink)
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i hate that our sports teams are owned by these losers MLSE
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Old 04-02-2009, 12:46 PM   #4 (permalink)
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The teachers own what, 35% of MLSE and they still have $85 Bil in assets
they have other owners

its more important to see how much the team made, thats the money they spend on bball
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Old 04-02-2009, 12:47 PM   #5 (permalink)
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Teachers own ~60% of MLSE.
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Old 04-02-2009, 12:48 PM   #6 (permalink)
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MLSE may be one of the Teacher's only investments to actually make money in this economy.
I still think they'll spend to the cap, but they'll probably never to into luxury tax territory.
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Old 04-02-2009, 12:57 PM   #7 (permalink)
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Owners
Ontario Teachers' Pension Plan (58%)
Kilmer Sports Inc. (20.5%)
TD Bank Financial Group (14%)
CTVglobemedia (7.5%)

as long as the ACC is filled w/ events, Leafs make money and Raptors make a profit or break even, they will be OK
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Old 04-02-2009, 01:06 PM   #8 (permalink)
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otpp is not going to impact they're $2.5 billion shortfall in any significant way with a few million in player's salaries. that shortfall is a market-related shortfall from the performace of longer-term investments and interest rate fluctuations. this will likely be an asset-backed fix, not an across-the board reduction in spending. i don't see how this would impact mlse salary possibilities.

imo.
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Old 04-02-2009, 01:18 PM   #9 (permalink)
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Whether it will effect spending or not is unknown. I brought it up because MLSE is less likely to spend into the tax if their shareholders are not willing, and the economic performance makes that a very likely situation.

Though MLSE does not generally share internal profitability information, I have it on good authority that the Raptors are still currently a net loss (not a net profit) for them. They have huge value as an asset, though.
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Old 04-02-2009, 01:21 PM   #10 (permalink)
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Quote:
Originally Posted by Ligeia View Post
Though MLSE does not generally share internal profitability information, I have it on good authority that the Raptors are still currently a net loss (not a net profit) for them. They have huge value as an asset, though.
really? I heard in the past on a couple of occassions that the Raptors turned a profit.
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Old 04-02-2009, 01:24 PM   #11 (permalink)
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MLSE is building condos and expanding the ACC
dont worry man

plus
I dont think any owner really wants to go over the luxury tax
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Old 04-02-2009, 01:34 PM   #12 (permalink)
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I read they had an operating income of $27.7 mil last year
7th higest in the NBA
NBA Team Valuations - Forbes.com
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Old 04-02-2009, 01:41 PM   #13 (permalink)
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According to the person I spoke with, Forbes' numbers (in terms of operating income and franchise valuation) differ from that of MLSE. I'm not saying this with any certainty as I personally do not get to look at their internal financial reports.
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Old 04-02-2009, 01:47 PM   #14 (permalink)
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As someone about to enter the teaching profession in Ontario (I'm in teacher's college now), I'm happy they own a money-maker like the MLSE.

As for MLSE spending more freely - we're already above the cap, but you can't really expect teams except NY and LA to go into luxury tax territory in this economy, unless you have a championship contender that will generate a lot of extra income in playoff revenue (ie. Cleveland).
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Old 04-02-2009, 02:06 PM   #15 (permalink)
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Quote:
Originally Posted by BballWatcher View Post

As for MLSE spending more freely - we're already above the cap, but you can't really expect teams except NY and LA to go into luxury tax territory in this economy, unless you have a championship contender that will generate a lot of extra income in playoff revenue (ie. Cleveland).
I definately agree with that.

It's got to be a matter of spending the money that we have wisely and not signing one trick ponies to way more than they are worth (*cough* Jason Kapono).

The challenge exists when the team has always had a difficult time in signing free agents. It's always Been and it will always be the biggest hurddle for this team.

not to mention that all MLSE GMs in history have always spent their money poorly. I used to think that Colangelo would change that, but it doesn't seem to be the case exactly.
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Old 04-02-2009, 03:32 PM   #16 (permalink)
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Just give me steady progress from here on in and I'm happy. The time to pay the tax to get to the big dance will only become clear when that steady progress is made first.
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Old 04-02-2009, 05:00 PM   #17 (permalink)
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no offense, but teachers are generally some of the cheapest ppl in the world lol you ever wonder why the leafs made the most $, but never spent the most pre salary cap days?? what a disgrace, could have tried to buy it at least once or twice, so cheap.
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Old 04-02-2009, 05:04 PM   #18 (permalink)
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didn't the Leafs have one of the highest salaries pre cap days?
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Old 04-02-2009, 05:11 PM   #19 (permalink)
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we never went over teams like detriot, ny, colorado..... when a truely good FA came along, we would always let them outbid us, and when a crappy has been come along, we would grab them (leech, nolan, housley, niedermier etc etc etce tc etc etc), overpay, and say look we tried.... but in reality we could have easily spent the most and still made the most, like the yankees do.
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Old 04-02-2009, 05:21 PM   #20 (permalink)
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what happened to Alex Shnaider
wasn't he trying to buy MLSE or at least a majority of it
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