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2007 Forbes teams Valuations are out.

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Postby mak1277 » Wed Apr 25, 2007 1:35 pm

Amazinz wrote:That was rhetorical. Sorry if the smiley didn't make that clear. ;-)

Anyway, I don't think Forbes would have the reputation they do by publishing reports that aren't backed by extensive research.


Research is all well and good, and I'm not insinuating that Forbes doesn't do the appropriate amount of due diligence. The reality, though, is that they don't have access to team records. I'll say that again because it's pretty important: Forbes does not have access to team financial records.

I've worked on a number of corporate acquisitions in my career, and I can safely say that information available to the public tells a very small part of the story needed to properly value a company. And that's for publicly traded companies that have quarterly and annual reporting requirements to the SEC. Privately held companies are even more difficult to properly value without access to books and records.

Now, I have no doubt that Forbes can perform analysis that can reasonably estimate ticket sales and portions of broadcast revenues. There are so many facets of the Clubs that are unknown to an outside observer, though, that the Forbes valuations are nothing more than shots in the dark. Some of them may be right on target, but I'd almost guarantee that some are not even close.

Edit - Also, since you mentioned Forbes' reputation...how would it ever be possible to verify the numbers Forbes prints? The teams themselves sure aren't going to open up the books to prove Forbes right or wrong. Basically, Forbes gets to publish their made up numbers with almost no repercussions and no chance that they will be refuted, other than the clubs making vague comments that the numbers are wrong.
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Postby Amazinz » Wed Apr 25, 2007 1:43 pm

What you said is that Forbes is making up numbers and having people buy them as reality. To me this is clearly ridiculous. I have a hard time believing that Forbes just "makes them up" and secondly no one is buying them as fact. I think they're interesting.
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Postby mak1277 » Wed Apr 25, 2007 2:00 pm

Amazinz wrote:What you said is that Forbes is making up numbers and having people buy them as reality. To me this is clearly ridiculous. I have a hard time believing that Forbes just "makes them up" and secondly no one is buying them as fact. I think they're interesting.


What if I said they were simply estimates? Would you prefer that term as opposed to "made up"? I see things as being pretty black and white. So when Forbes puts a number out, it's either fact or fiction. Their numbers are estimates (fiction). They are not baseless, but they still are only estimates.

And I would guess that most people who see those numbers do take them as fact. Why wouldn't they? Forbes certainly doesn't come out and tell their readers that they have no access to the financial records of the teams. If a reader did not know this critical piece of information, why wouldn't they believe the numbers were accurate. There would be no reason to question them if you didn't know better.
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Postby Amazinz » Wed Apr 25, 2007 2:06 pm

Well thankfully the Cafe has no shortage of vigilant business analysts to show us dum dums the error of our ways.
Maine has a good swing for a pitcher but on anything that moves, he has no chance. And if it's a fastball, it has to be up in the zone. Basically, the pitcher has to hit his bat. - Mike Pelfrey
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