The number 1 issue last week in the PBA universe was the announcement of the owner of Blackwater Elite that he is selling the franchise for P150 million.
This is after the management of the PBA asked the franchise to explain his statements in a podcast that his team was having a practice.
Now, the question that we will try to answer for this one is, is the Blackwater franchise, worth P150 million?
Looking back, Blackwater paid P120 million to be one of the two expansion teams in 2014. So, the first thing that I did is to know the current value of that P120 million by simply applying the inflation rate of the country from 2014 to 2019.
After adding the effect of inflation per year, I ended up with P140,519,480. So, it means buying the Blackwater franchise is only around an additional P10,000,000 in cost compared to purchasing a franchise in 2014.
If Blackwater managed to sell their franchise, the buyer will also take over the contracts of the players and the coaching staff. And I think that the current roster of the team is way more valuable than P10,000,000.
Now, how about simply focusing on the roster of the team. Is it worth P150,000,000?
The top-selling pieces of the team are Mac Belo, Maurice Shaw and Don Trollano. I do not think they are the trio that a new owner should covet to have. Although, their roster is also full of big wings, who can shoot and those are the most important players in modern basketball.
In their roster, they have twelve players who are 30 years old and younger. It means, they do have a young team that the new owner can develop.
One negative value for their franchise is the fact that they have the image of being a farm team. Even though it will be owned by a different company, that image will not be erased that easily.
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