Value-What's it Worth?

suge night
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Value-What's it Worth?

Post by suge night » Thu May 25, 2017 3:33 pm

In light of some indoor team currently cutting salaries, I pose the question what is a arena/indoor team worth? I won't name the club but its happening, now back to my Thread first let's establish what the IRS suggest as to value of a business.

Internal Revenue Service, revenue ruling 59-60 is the guiding principle for valuing closely held businesses. Fair market value is the most common standard for estimating value for the most frequent purposes; gift and estate tax purposes, purchase or sale of businesses, and divorce. IRS Rev. Ruling 59-60 defines fair market value as:

The price at which property would change hands between a willing hypothetical buyer and a willing hypothetical seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell and both parties have reasonable knowledge of all relevant facts.

Business valuations are prepared for many reasons. Some of the more common reasons are; buying or selling all or part of a business, marital divorce, estate and gift tax planning, determining value in a buy/sell agreement, financing, litigation, and shareholder disputes. The purpose of the business valuation will determine the valuation approach and methods.

A company’s value is the present value of its future benefits to the owners. An investor would only invest if they believed that the future benefits are greater than the current value or price. All investors require a rate of return on the investment and the rate of return is determined by certain risks associated with the investment. The greater the risk, the larger the required rate of return and vice versa. All companies have unique risks and earnings potential, so there is not one single approach or method that can be applied to estimate the future benefits. The prominent business appraisal organizations utilize three business valuation approaches: asset, market and income. Within each of the three approaches there are several methods.

Now within this question is exactly what does the league offer to suggest it alone is worth its letter head, you currently have leagues with failing teams, one team has already stated its leaving to start its own league, another is floating three teams just to finish its first season, the supposedly big league of the sport had teams leave after considering this same question, and finally back to my original question name one arena/indoor team worth 1 million dollars better yet one hundred thousand dollars let's lower the bar.

And they collectively have yet to figure out they need a infrastructure and a working relationship with one another in order to develop the industry to its fullest potential.

4th&long
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Post by 4th&long » Fri May 26, 2017 1:44 am

[quote=""suge night""]In light of some indoor team currently cutting salaries, I pose the question what is a arena/indoor team worth? I won't name the club but its happening, now back to my Thread first let's establish what the IRS suggest as to value of a business.

Internal Revenue Service, revenue ruling 59-60 is the guiding principle for valuing closely held businesses. Fair market value is the most common standard for estimating value for the most frequent purposes; gift and estate tax purposes, purchase or sale of businesses, and divorce. IRS Rev. Ruling 59-60 defines fair market value as:

The price at which property would change hands between a willing hypothetical buyer and a willing hypothetical seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell and both parties have reasonable knowledge of all relevant facts.

Business valuations are prepared for many reasons. Some of the more common reasons are; buying or selling all or part of a business, marital divorce, estate and gift tax planning, determining value in a buy/sell agreement, financing, litigation, and shareholder disputes. The purpose of the business valuation will determine the valuation approach and methods.

A company’s value is the present value of its future benefits to the owners. An investor would only invest if they believed that the future benefits are greater than the current value or price. All investors require a rate of return on the investment and the rate of return is determined by certain risks associated with the investment. The greater the risk, the larger the required rate of return and vice versa. All companies have unique risks and earnings potential, so there is not one single approach or method that can be applied to estimate the future benefits. The prominent business appraisal organizations utilize three business valuation approaches: asset, market and income. Within each of the three approaches there are several methods.

Now within this question is exactly what does the league offer to suggest it alone is worth its letter head, you currently have leagues with failing teams, one team has already stated its leaving to start its own league, another is floating three teams just to finish its first season, the supposedly big league of the sport had teams leave after considering this same question, and finally back to my original question name one arena/indoor team worth 1 million dollars better yet one hundred thousand dollars let's lower the bar.

And they collectively have yet to figure out they need a infrastructure and a working relationship with one another in order to develop the industry to its fullest potential.[/quote]

What club / league?

4th

nksports
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Post by nksports » Fri May 26, 2017 3:32 pm

Given how few indoor/arena teams make any money at all, I would guess that the valuation of most teams would be negative.
A few owners are rich enough that they can sustain low to moderate losses for decades, which I am pretty sure are used to lower tax liabilities.
But we've also seen some pretty high profile owners (see LA Kiss, the Las Vegas team last year and the Philadelphia Soul as examples) walk away.
Too many teams in some of the rinky dink leagues are undercapitalized to start with and those turn into those craptacular dumpster fires we've seen ever since the late dark days of the NIFL.

Sec19Row53
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Post by Sec19Row53 » Fri May 26, 2017 5:13 pm

I'll give an admittedly poor answer, but I think it has value.

I'll compare an indoor/arena football team to a baseball card. What's it worth? Whatever someone is willing to pay for it.

Back in the early to mid-80s, baseball cards had some value. They went much higher in the late 80s and VERY early 90s. Now? Unless you have a really special baseball card, they aren't worth much.

4th&long
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Post by 4th&long » Tue May 30, 2017 12:35 am

[quote=""suge night""]In light of some indoor team currently cutting salaries, I pose the question what is a arena/indoor team worth? I won't name the club but its happening, now back to my Thread first let's establish what the IRS suggest as to value of a business.

Internal Revenue Service, revenue ruling 59-60 is the guiding principle for valuing closely held businesses. Fair market value is the most common standard for estimating value for the most frequent purposes; gift and estate tax purposes, purchase or sale of businesses, and divorce. IRS Rev. Ruling 59-60 defines fair market value as:

The price at which property would change hands between a willing hypothetical buyer and a willing hypothetical seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell and both parties have reasonable knowledge of all relevant facts.

Business valuations are prepared for many reasons. Some of the more common reasons are; buying or selling all or part of a business, marital divorce, estate and gift tax planning, determining value in a buy/sell agreement, financing, litigation, and shareholder disputes. The purpose of the business valuation will determine the valuation approach and methods.

A company’s value is the present value of its future benefits to the owners. An investor would only invest if they believed that the future benefits are greater than the current value or price. All investors require a rate of return on the investment and the rate of return is determined by certain risks associated with the investment. The greater the risk, the larger the required rate of return and vice versa. All companies have unique risks and earnings potential, so there is not one single approach or method that can be applied to estimate the future benefits. The prominent business appraisal organizations utilize three business valuation approaches: asset, market and income. Within each of the three approaches there are several methods.

Now within this question is exactly what does the league offer to suggest it alone is worth its letter head, you currently have leagues with failing teams, one team has already stated its leaving to start its own league, another is floating three teams just to finish its first season, the supposedly big league of the sport had teams leave after considering this same question, and finally back to my original question name one arena/indoor team worth 1 million dollars better yet one hundred thousand dollars let's lower the bar.

And they collectively have yet to figure out they need a infrastructure and a working relationship with one another in order to develop the industry to its fullest potential.[/quote]

Suge - who you talking about here? League?

4th

suge night
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Post by suge night » Tue May 30, 2017 1:57 pm

4th I won't completely go there but (Champions) are always rewarded right ;)

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