Quote:
Originally Posted by Enoch Root
The league isn't stupid - they aren't going to let a potential new owner come in and grab a team on the cheap and then move them to a more desired (by the league) location.
This is precisely what Balsillie kept trying to do and the league shut him down.
Look at the league as a partnership (like a law or accounting firm). If someone wants to become a partner, they have to buy in. You don't build a successful partnership and then simply let others join in - watering down your stake - for nothing.
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I agree with alot of that. But one difference, at least at my firm, is that all partners have an equal amount of capital invested in the firm (equal in terms of a relative percentage of their firm earnings). You get admitted as a partner because you can demonstrate the ability to grow the earnings of the firm to the benefit of all partners. You don't get admitted on the basis of being willing and able to cut a gigantic cheque to all the existing partners.
A new expansion team will water down existing shared TV money etc. but at this price the existing owners are certainly cashing in.