Mr. Shinn's Hornets nest

[mranderson]

The Oklahoman has reported that George Shinn has bought a house in Nichols Hills.

Although small, he BOUGHT the house... Not leased. This suggests he is planning on staying in Oklahoma City and NOT returning to New Orleans.

Before you say it means nothing, keep some things in mind. One. Business people like to deny. My own employer does this frequently and they are one of the largest companies in the world. These businesses like to deny things that are obvious, then all of a sudden, they announce what is already known. Two. Shinn's house is just over 2,000 square feet. Many wealthy people do not flaunt it. The myth is all wealthy (or in the commoners vernacular "rich") people buy big houses, go on a lot of expensive trips, buy the most expensive, etc. Not neccessarily. Look at Sam Walton. He lived in a 40 year old house that was about 1,500 square feet, drove a truck that was barely operational, and wore tattered cloting. If he walked into Tiffany's, chances are, the salesperson would be rude to him because that sales person would think he did not have the money to even pay for the dust on the floor, when, in fact, he coild whip out a wad of cash that would make "Jed Clampit" look like he was on welfare.

I still think the team is here, and here to stay. Shinn buying a house instead of leasing it is just part of the evidence that points toward that direction.

[Karried]

The fact that he bought a small house might mean it's a temporary home. In other words, if he bought in Gaillardia, I would be more inclined to believe he was staying long term.

It makes sense to buy instead of rent - compared to renting, he can use his tax mortgage deduction for the entire time (compared to renting where he loses all of that money).

He might be planning on living in it temporarily and then leasing it to someone when he finds something else or he might be making an investment.

Who knows what the future holds but buying a smaller house doesn't lead me to believe it means long term.

[mranderson]

The fact that he bought a small house might mean it's a temporary home. In other words, if he bought in Gaillardia, I would be more inclined to believe he was staying long term.

It makes sense to buy instead of rent - compared to renting, he can use his tax mortgage deduction for the entire time (compared to renting where he loses all of that money).

He might be planning on living in it temporarily and then leasing it to someone when he finds something else or he might be making an investment.

Who knows what the future holds but buying a smaller house doesn't lead me to believe it means long term.

Both may could be what is happening. I still say the evidence points toward permanant. Shinn may be one of the people I described. He may not want to spend over a million on a house. He way be a wise investor instead of the sterotype spend-o-matic.

[JOHNINSOKC]

It''s really too early to know what his intentions are, but he did say in the Oklahoman that even if he wanted the Hornets to stay permanately, the NBA is the one that will ultimately decide where the Hornets play. If the NBA says New Orleans, he has no choice but to go back.. I can't see anyone wanting to stay in a hotel for an entire season. I hope the intention is to stay here permanently. I think todays article said that Byron Scott LEASED a home in Edmond.

[mranderson]

It''s really too early to know what his intentions are, but he did say in the Oklahoman that even if he wanted the Hornets to stay permanately, the NBA is the one that will ultimately decide where the Hornets play. If the NBA says New Orleans, he has no choice but to go back.. I can't see anyone wanting to stay in a hotel for an entire season. I hope the intention is to stay here permanently. I think todays article said that Byron Scott LEASED a home in Edmond.

You are correct. The NBA is also who had the right of rejection to bring the team here for the season. Had the NBA felt Oklahoma City was not a major league market, the team would not be here now. I have no doubt that if the tam is out of New Orleans permanantly, they are ours.

[scotplum]

I appreciate your enthusiasm Mr. Anderson, I really do. I think maybe you are reading a little too much into things. The fact that Shinn bought a house in Nichols Hills means he needed a place to live. That's really about it. With the recovery process going on in New Orleans, I imagine even Shinn is not 100% positive on what is going to occur with the Hornets.

My personal feeling is that the Hornets will return to N.O. if the city can bounce back successfully. I do agree with you when you say that if they do not return to N.O. that they will stay in OKC.

[mranderson]

I appreciate your enthusiasm Mr. Anderson, I really do. I think maybe you are reading a little too much into things. The fact that Shinn bought a house in Nichols Hills means he needed a place to live. That's really about it. With the recovery process going on in New Orleans, I imagine even Shinn is not 100% positive on what is going to occur with the Hornets.

My personal feeling is that the Hornets will return to N.O. if the city can bounce back successfully. I do agree with you when you say that if they do not return to N.O. that they will stay in OKC.

I am using a very large knowlege of business practices to give my thoughts. Most of the time, I am correct.

[scotplum]

I am using a very large knowlege of business practices to give my thoughts. Most of the time, I am correct.

If your very large knowledge of business practices is based in large part on whether someone buys a house in that market (especially in the current situation for the Hornets), than I'm not sure I can agree with you.

[mranderson]

If your very large knowledge of business practices is based in large part on whether someone buys a house in that market (especially in the current situation for the Hornets), than I'm not sure I can agree with you.

No. It is based on being raised around major business leaders which inlude Ross Perot and others. I learned how to read between the lines. This is an education very few people get. So, most people just let it go "in one ear and out the other."

[Karried]

Speaking of Ross Perot, he could let anything go in one ear and out the other ----

Big ears, get it!? ha,ha,ha LOL I'm cracking myself up here.....

[scotplum]

No. It is based on being raised around major business leaders which inlude Ross Perot and others. I learned how to read between the lines. This is an education very few people get. So, most people just let it go "in one ear and out the other."

Well that's cool then. I'm not doubting your belief that you have stated earlier about why you think the Hornets are here to stay. Of course my reply was intended toward your comments regarding Shinn buying a house and that being direct proof of the Hornets intentions to stay in Oklahoma City. I suppose it's foolish of me to think that is what we were talking about in this thread even when you said the following:

Although small, he BOUGHT the house... Not leased. This suggests he is planning on staying in Oklahoma City and NOT returning to New Orleans.

On the subject of Shinn buying a house, my point is that I think you are reading too much into it. That is all.

[scotplum]

Speaking of Ross Perot, he could let anything go in one ear and out the other ----

Big ears, get it!? ha,ha,ha LOL I'm cracking myself up here.....

Yuk yuk!

[mranderson]

Well that's cool then. I'm not doubting your belief that you have stated earlier about why you think the Hornets are here to stay. Of course my reply was intended toward your comments regarding Shinn buying a house and that being direct proof of the Hornets intentions to stay in Oklahoma City. I suppose it's foolish of me to think that is what we were talking about in this thread even when you said the following:




On the subject of Shinn buying a house, my point is that I think you are reading too much into it. That is all.

Very few people buy a house with the intentions of only staying in it one year. THAT is what suggests the team is here to stay.

[John]

Mr. Shinn has been staying a a 'local hotel' and as anyone who goes on business trips for extended periods of time knows, as nice as any hotel is, it isn't home.

A mortgage payment on a house of that size in Nichols Hills is a much better deal than paying 'rent' at a hotel for an extended period of time.

[mranderson]

Mr. Shinn has been staying a a 'local hotel' and as anyone who goes on business trips for extended periods of time knows, as nice as any hotel is, it isn't home.

A mortgage payment on a house of that size in Nichols Hills is a much better deal than paying 'rent' at a hotel for an extended period of time.

Granted. However, the hotels are tax deducatable. The house is not. So, those hotels can be a better value for tax purposes. I will stick with my feelings.

[scotplum]

Granted. However, the hotels are tax deducatable. The house is not. So, those hotels can be a better value for tax purposes. I will stick with my feelings.

It's hard to say if that tax deduction would make one bit of difference to a millionaire looking for the comfort of home for at least a year.

So, going by your logic, the fact that Byron Scott is leasing and not buying a home, does that mean that he will not be the coach next year? Or perhaps he's just not privy to the information?

I think the fact that someone bought vs. someone leasing or staying in a hotel is insignificant information on the Hornets intentions beyond this year.

[mranderson]

It's hard to say if that tax deduction would make one bit of difference to a millionaire looking for the comfort of home for at least a year.

So, going by your logic, the fact that Byron Scott is leasing and not buying a home, does that mean that he will not be the coach next year? Or perhaps he's just not privy to the information?

I think the fact that someone bought vs. someone leasing or staying in a hotel is insignificant information on the Hornets intentions beyond this year.

Maybe he lives in another city off season. Many players or coaches do, vs. George Shinn possibly creating local ownership. Plus, who knows. Maybe Scott will NOT coach next year. He could get a better offer or he could get gate 86.

[Karried]

Granted. However, the hotels are tax deducatable. The house is not. So, those hotels can be a better value for tax purposes. I will stick with my feelings.

What does this mean ???

Ever hear of a mortgage tax deduction? One of the reasons many people buy a home opposed to renting - the interest is tax deductible.

[mranderson]

What does this mean ???

Ever hear of a mortgage tax deduction? One of the reasons many people buy a home opposed to renting - the interest is tax deductible.

He could have paid cash. Many wealthy people have been known to do that.

[scotplum]

He could have paid cash. Many wealthy people have been known to do that.

LOL, you don't think there's a little too much speculation going on here?

[BDP]

He could have paid cash.

In which case, it can be much better than staying in a hotel. The hotel, even after deductions will still simply be an expense. The house can appreciate, giving him the possibility of making money on his OKC residence (which he needs) as opposed to it being an expense. And, the house would have to depreciate at a rate equal to the expense of the hotel after taxes for it not to make sense. Given OKs inexpensive and relatively stable housing market, that's very unlikely. Even with insurance and expenses, it's a fairly safe and much more comfortable way for his family to live while they're here in OK. His worst case scenario is selling it in one year. If he's not paying interest on the house and has the cash, it's very easy to justify versus staying in a hotel or renting a house, especially if one views the housing market as stable or favorable.

The real considerations there would be whether his portfolio distribution can justify putting that much cash in a house vs. the opportunity cost of placing it elsewhere.

But since we don't know his actual portfolio or if he paid cash for the house, it's hard to really say whether it's a good idea and even harder to use the transaction as speculation into the man's intentions with his basketball team, either way. But, no matter. People will just believe what they want to believe.

[mranderson]

In which case, it can be much better than staying in a hotel. The hotel, even after deductions will still simply be an expense. The house can appreciate, giving him the possibility of making money on his OKC residence (which he needs) as opposed to it being an expense. And, the house would have to depreciate at a rate equal to the expense of the hotel after taxes for it not to make sense. Given OKs inexpensive and relatively stable housing market, that's very unlikely. Even with insurance and expenses, it's a fairly safe and much more comfortable way for his family to live while they're here in OK. His worst case scenario is selling it in one year. If he's not paying interest on the house and has the cash, it's very easy to justify versus staying in a hotel or renting a house, especially if one views the housing market as stable or favorable.

The real considerations there would be whether his portfolio distribution can justify putting that much cash in a house vs. the opportunity cost of placing it elsewhere.

But since we don't know his actual portfolio or if he paid cash for the house, it's hard to really say whether it's a good idea and even harder to use the transaction as speculation into the man's intentions with his basketball team, either way. But, no matter. People will just believe what they want to believe.

Trust me. With my knowlege of how wealthy people spend money, I can guarantee he had the money. He may have had to raise it with stock sale or something, but he had the money. Plus, the hotel would be 100% deductable for business when he travels, but not as a residence. That deducation can take a chunk out of his income tax.

I suggest listening to Dave Ramsey who has a program on KEBC, Monday thru Friday 1:00-3:00, and is also on XM radio. You will learn a lot about how wealthy people spend money.

I still say, based on the logic skills I have been taught by very wealthy business people, I would be quite surprised if the New Orleans was not taken off the team name by 2007-2008 season.

[scotplum]

If you were to tell me that Shinn sold his house in New Orleans, then I think you might have something.

[mranderson]

If you were to tell me that Shinn sold his house in New Orleans, then I think you might have something.

Who knows. Maybe it is on the market.

[scotplum]

Who knows. Maybe it is on the market.

LOL, who knows, maybe it's not. Maybe he's trying to be another house in New Orleans. Who knows?