Gladwell Article on Professional Sports Teams

[Matt L]

Ths is a pretty good article on owning a professional sports team written by one of my favorite authors:

http://www.grantland.com/story/_/id/6874079/psychic-benefits-nba-lockout

 

[carrrnuttt]

Someone forward that to Saver. Now.

 

[BC867]

What an enlightening point of view about owners of professional sports teams. Is their motivation to strut with the message being, "My team is better than your team."?

How do the leagues fit into that? Are the commissioners there at the pleasure of the owners, or are they caught up in the "My league is better than your league." syndrome?

The problem is that the absence of a solution indicates that's the way it is and that's the way it will be. Just as our country, the leagues are headed down a steady decline.

It is not about cash. It is not about the game as a sport or even a branch of the entertainment industry. It is about power!

The middle class is dwindling in our society. And hey, the middle class is dwindling in our sports leagues. In addition to all of the other things, sports and entertainment are microcosms of society, but much more garish.

And just as our country, sports leagues and owners are too caught up in themselves to work together and find solutions.

 

[Irish]

It's an interesting article, but deceptive. Buying assets well above their cash flow value can lose its appeal once the red ink gets too high

1. Dpes the Owner have Use for A Lot Tax Writer-Offs: Some do and some don't. The stronger the economics, the ieasier it is buy into the psychic income element. If overall economics is weak, the value of the writ-offs are a lot lower and the owner more likely to grumble.

2. The nature of the owner's outside business. can influence the value of the franchise. It is not a coincidence that New York teams typicall have media interests.

3. In the golden period of the San Francisco 49ers, the owner De Bartelo was into real estatef. Having a successful team gave him easy access to lots of people. Eventually the NFL forced him out because he was bidding the price of players up.

In any case, owners like Sarver are constantly disappointed at how the NBA works.