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Friday, January 6th, 2012 at 10:40 am  |  29 responses

Report: Miami Heat Owner Lost $1.3 Billion Last Year


According to Forbes mag, Heat owner Micky Arison lost a very large amount of money outside of the basketball biz. ESPN has the details: “Last month Miami Heat owner Micky Arison cast a protest vote against the NBA’s new collective bargaining agreement because he felt it was a bad financial deal for his team. Even though Arison is one of the NBA’s wealthiest owners, he’s regularly maintained that his basketball business should still be run like a business. That isn’t likely to change, especially since Forbes magazine estimated this week that Arison lost more than 20 percent of his net worth in the last year. Citing the 28 percent drop in Carnival Cruise Lines stock, the financial publication said Arison lost $1.3 billion. He is still estimated to have $4.5 billion in assets. Arison is the majority owner of a variety of different cruise brands and recently launched his 100th cruise ship. His core business has been affected by the slump in leisure travel over the last several years. Meanwhile, the Heat were one of the league’s most profitable teams in the 2010-11 season, selling out every game and making a deep and lucrative playoff run while maintaining a payroll that was below the league’s luxury tax level. This season, however, the Heat are paying the luxury tax and new tax rules will make it very expensive to keep their core of LeBron James, Dwyane Wade and Chris Bosh together starting in the 2013-14 season. A new revenue-sharing system also will make the Heat share more of their profits with other teams, the facet of the new deal that irked Arison the most.”

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  • http://minusthebars.blogspot.com don

    Cry me a river…

    Arison is a BILLIONAIRE for crying out loud.

  • http://slamonline.com AlbertBarr

    The deep water horizon oil spill didn’t help cruise business either

  • Fat Lever

    Not 1 billion, not 1.1 billion, not 1.2 billion…

  • http://www.chicagonow.com/blogs/chicago-bulls-talk/2011 Diesel

    Champagne problems

  • Sean

    If this man was to spend $10,000 a day he’d still have enough to last about 12 lifetimes for an average person.

  • Ldub20

    Why is it that when someone who is considered wealthy loses money, people show no sympathy? Yes the dude has tons of money but because the impact my not be as great, as if an average american lost 1000.00, it makes it ok to knock the story? Or say whatever you lost a billion…youve got more. Highly doubt that if you worked that hard and obtained wealth that your mindset would stay the same as if you were part of the 25k a year crowd.

  • Exile

    Soo…. Title this year or trade one of the big pieces for solid starters (PG and/or C) and draft picks? If it is run like a business, than this is the end of the trial before it gets too expensive. No Pressure.

  • http://nyill.wordpress.com O

    Is that surprising? I’ve always said that Miami isn’t a sports town. That’s why LeBron bring a bunch of titles to Miami is like the US winning the World Cup. Who the hell cares besides a few true fans a sh*t load of bandwagoners? The Miami Marlins is going to have a SQUAD next year and a new stadium. Watch them lose a lot more money than the Heat.

  • Bt

    It’s not like he physically lost the cash, his stocks merely lost value, as stocks do from time to time. He’ll get the $$$ back and more eventually

  • T-Money

    O, read the article. The basketball team was very profitable.

  • The Spaniard

    “Why is it that when someone who is considered wealthy loses money, people show no sympathy?”

    Here’s why…

    If someone worth 10 billion loses half of their money they are STILL ultra wealthy and their life doesn’t change one iota. But if someone earning $40,000 loses half of their income they are in poverty and couldn’t possibly continue their current life as normal or without any significant negative changes.

    Money loses it relative utility at some point. Even for a billionaire. So outside of some “status” marker no one really cares if a multi-billionaire become a billionaire then…so what?

  • http://nyill.wordpress.com O

    Damnit, T! Can’t You see i’m hating to hate? lol

  • Ldub

    so youre saying that because your a millionaire your going to budget as if you were to make 40k a yr? you wouldnt! you would up all your finances because you can afford to. your mindset would change. no one worth millions is gonna be seen driving an ford fusion. regardless of how wealthy you are, and what your financial class is, losing money isnt cool. the rich still have bills and it doesnt matter what the income is…the outgo majority of the time is close to it. the more u make, the more you spend!

  • MikeC.

    Arison losing billions is bad. I don’t feel sorry for the man, but it imacts many different areas. If his company loses money, it’s recovered elsewhere like layoffs, reductions in health benefits, no performance raises for employees, etc. Billionaires losing money means an average Joe/Joanne is going to feel it too.

  • http://www.chicagonow.com/blogs/chicago-bulls-talk/2011 Diesel

    Ldub, he’s not a millionaire, he’s a billionaire…so your argument makes no sense. There is nothing that you can’t buy with 5.6 billion that you can’t buy with 4.5 billion. That’s why nobody cares.

  • http://www.inoprints.com Jovim

    “no one worth millions is gonna be seen driving an ford fusion” – You’re right. Bill Gates drives a ford focus, but then again, he’s not a millionaire, he’s a billionaire.

  • LA Huey

    O, “the Heat were one of the league’s most profitable teams in the 2010-11 season, selling out every game and making a deep and lucrative playoff run while maintaining a payroll that was below the league’s luxury tax level.”

  • Heals

    I understand why most heads here are cracking on him, but at least he didn’t try to make up for his lost revenues off the court by fleecing the players for their cut of BRI. I haven’t heard this guy complain once about his off the court finances like Philbert in Cle. Kohl in MIl, MJ in Cha and so on. Usually most fans would care if their owner went through this because it would be reflected by a reduction on team spending etc. out of necessity, but not this cat…

  • david
  • http://thetroyblog.com Teddy-the-Bear

    @ LDub: People show no sympathy because he still has 4.5 BILLION DOLLARS. It’s not even comparable to the average worker losing $1000 because the average worker won’t have 4.5 BILLION DOLLARS left if that happens.

  • http://slamonline.com Allenp

    This is like LeBron James losing a few inches on his vertical.
    that’s the proper analogy.

  • Cameron

    LDub…I can’t, in no way, feel bad for someone who STILL has 4.5 billion left. It’s not like he can’t make some of it back anyways

  • stlheatmaniac

    YEA HE LOST SOME DOUGH BUT HE FINNA MAKE UP FOR IT WITH MULTIPLE CHAMPIONSHIPS. I DONT GIVE A FLYING F** WAT A BLIND HATER SAY DIS CHIP IS OURS DIS YEAR AND POSSIBLY THE NEXT 4 YEARS. WHO OUT THERE THAT LOOK BETTA THAN THE HEAT?? OH LET ME CLARIFY… OUR BENCH BETTA THAN MOST TEAMS SO UMMM LETS GET IT!!

  • Roberto

    @LDUB….Actually some people who are wealthy still do think that way. People like Warren Buffet (Net Worth 39B) and Ingvar Kamprad, founder of IKEA,(6B) drive older cars. Buffet would drive an Older Lincoln Town Car (with the license plate “Thrifty” on it) and Kamprad would drive a 1993 Volvo. Buffett would say the reason he stays rich and becomes even wealthier is because he thinks frugaly and doesnt need a whole bunch of lavish things.

  • j_edgar_duder

    There is a difference between ‘worth’ and revenue, or cash value. Worth is always an estimate, especially by forbes standards…

    Case in point Paul Allen is the loosingest (finacially) owner in sports history–by ‘worth’ that is.

    Aaronson just did’nt lose ’1.3 bill’.

  • Aimee

    What a crock of BS. Whatever!!

  • Ldub

    So lets ask the question then since all of you are trying to bust my chops based on what the owner makes annually. “If you were a billionaire, and you lost billions of dollars, would you feel it? Or would you just say…”oh i still got X billion left, im good?”!! The point is its a loss of money. When you are used to making X amount of money a year, and then you dont obtain that, it will effect you and everyone underneath you as well. Just like “MikeC” said. I think the fact that he is a “billionaire”(which means he should automatically have ample money) people get turned off by the story. You have enough so who cares of you lose some. Horrible mindset.

  • RS

    Despite the financial loss, I am still sure Mr. Arison cares most about the victims and their families. Operating 100 cruise ships makes him a care-taker of a lot of lives. The ship can be replaced and future cruisers can be rebooked onto other cruises or refunded. Whether you make $30 grand a year or a few billion – we all know what the real loss was here.

  • http://moontain.org Fredd

    there’s a difference between the lost of money, and the lost of your job, …
    he still does have a job, in fact, by losing money, it may results with more people fired …
    so this guy, can keep his job.

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