Exactly- and usually they expect to make money on exit or structuring and choose to operate at a loss- which is to say they build long term equity on a tax-efficient basis.
In my experience small business owners and entrepreneurs are a lot like lawyers- smart and usually well meaning people who are extremely adept in a focused way, but sort of blinkered by their own business conditions and easily surprised by realities outside.
Right. You’re just outraged by the fact that the employees of their long term Investment are asking for raises, despite the fact that it’s not run-rate profitable.
On its “merit?” Lolololol. If it didn’t exist on its merit, it wouldn’t exist. You just don’t agree with the people who pay the bills about what the merit of the league is. And you don’t have to.
Do you understand business at all?
Fed funds rate 1955-present. In my opinion Fed Funds is the best single Indicator of the current credit environment. My point is that what this rate climate is not and has not been restrictive enough except in sectors of the economy that had become addicted to cheap debt and are now dope sick.
And I’m genuinely sympathetic, because I know it’s tough on people in those industries. But two much cheap debt has really hurt the economy and may have fatally wounded the American middle class.
What the market will bear is the product of many inputs not limited to the P&L, and is up to the buyer. And you have no idea “what the math supports,” but as always, true to form:
The league is not “insolvent”. Insolvency is s financial state wherein a business cannot pay its obligations.
They league operates at a loss. Profit and loss are accounting concepts related to the relationship of revenue and costs, which are often merely operational choices.
Either way, what business is that of yours? They aren’t your employees.