Alex Martins: Magic still not profitable

Douglas Jones/USA TODAY

Forbes unveiled their annual financial valuations of the NBA teams, with the Magic coming in 15th at a current value of $560 million. The value of the team increased by 19 percent according to Forbes and the team made an operating income of $12.3 million, fourth worst in the league.

Magic President Alex Martins disputes this last number, telling the Orlando Sentinel the Magic have not made a profit in the last decade:

We did not make a profit last year. We have not made a profit in over a decade. That's a product primarily of the DeVos' approach that they're going to continue to reinvest in the business and continue to reinvest in the product on the floor. But to assert that we made an operating profit last year is completely inaccurate.

Certainly there are different ways to define "profit" and Forbes' method of calculating profit might leave out some factors the organization considers as part of their bottom line. There could be factors — such as revenue sharing — that Forbes is considering that the Magic do not when calculating their yearly bottom line.

In any case, it appears the Magic are in decent shape financially as a business moving forward. They have had tremendous success since moving into the Amway Center and have made significant steps in building an entertainment complex across the street from the arena. These surely have helped increase the Magic's franchise value.

Again, the only thing that seems to be going wrong with this team right now is the product on the floor. The Magic are settling in at the bottom of the Eastern Conference standings for the second straight year.

Philip Rossman-Reich

About Philip Rossman-Reich

Philip Rossman-Reich is the managing editor for Crossover Chronicles and Orlando Magic Daily. You can follow him on twitter @OMagicDaily