Ugueth Will Shiv You wrote:
How is Kobe a bad example? Your quote just basically agrees completely with my original point. He is a completely different player now than he was 6 years ago, yet he's making more money. That's not depreciation.
Kobe is not selling more tickets now. If anything, he's less of a draw because he's not the best player in the league any more.
Ugueth Will Shiv You wrote:
Its not something that you can actually put a number on, and put on your accounting books. That’s the point. I mean, otherwise your company would do it, and so would mine, and so on and so on. Its essentially documenting your minions. You’re putting numbers on people. Besides that, if your teams sucks because your players suck (because they’ve “depreciated”) then your team is worth less. But that’s not a number you can technically keep track of and put on your accounting books. And on top of THAT, how much money will you, as a franchise, have to spend in order to accurately portray how much you believe your players are worth? A million? 10 million? The time and money spent trying to figure that out each year would be enormous. And completely not worth it.
I don't have a contract and you probably don't either. I'm sure that there are certain tax implications for multi-year contracts in other businesses too.
Ugueth Will Shiv You wrote:
As much as we like to call players “assets” of a team….they really aren’t assets in that way. They can quit, they can try harder, they can get injured, they can become great players, they can sell tickets for you, they can NOT sell tickets for you. They can decide to be awesome, or decide to be Baron Davis. But, they can’t make potatoes crunchy. They don’t have resale value. They have trade value. But to you, Baron Davis might be worth 12 million, but in my system I need a PG who isn’t fat and lazy so to me he’s only worth about 4 million. When I want to resell my car there is really not a lot wiggle room on what its worth. In this condition with those scratches and that number of miles its worth about $15,000. There is so much less that goes into determining the value of a fixed asset. Because you purchased that arena's fryer for S1,000, you then depreciate it evenly over its lifespan of say, 5 years. So every year, you take a hit of $200 for depreciation costs. You just cannot do that with a real, living, breathing person who can make his own decisions.
Let's say that the Lakers traded Kobe Bryant in 2007. They could have gotten virtually any player in the NBA. If they tried to trade him today there would be a big list of players that would not be available. I know I wouldn't trade Rose for Kobe right now but I sure would have traded his draft rights for Kobe.