I want to add another detail to the ongoing discussion about Pacers' profitability and viability. That detail is the expiration of the CBA in June 2011. The owners have a chance to renegotiate the agreement. They are likely to demand a better deal, and even the players association anticipates the owners will demand a lot of concession and may resort to a lock-out to get it.
Now, between now and then our whole economy is going to change and many kinds of assets are going to devalue. Your stocks and 401K, your house, and many kinds of property are going to devalue. Government revenues may take an L-shaped drop that requires structural changes. The imminent renegotiation between the CIB and PS&E is just one example. Professional athletes earnings may have to share the pain, too.
How does a professional sports team manage in a bearish market, especially when it can see bargains on the horizon?
A new collective bargaining agreement may help the Pacers bottom line . There are no guarantees, but they ought to plan to be in the position to take advantage as soon and as much as possible. To my mind, I would not want to encumber the payroll very much beyond 2011. Right now, the Pacers have Granger under contract and options on Hibbert and Rush. That is all. (Am I correct on that?) Those are great deals to have. But they may be smart to avoid other lengthy deals.
How should the Pacers manage the need to win games and fans in the short run and the prospects of a very significant change in the business side 28 months away?