Quote:
Originally Posted by VladtheImpaler
But, if they have to front $300M (just making up a number) to make $25M/year (just making up a number) and have the value of the franchise appreciate by, say $30M, the deal makes no sense, as they could do much, much better investing the $300M elsewhere.
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I thought it was a given that sports teams are not good investments. They're ego vehicles for the mega-rich who are willing to give up some small fraction of their staggering fortunes to have have a really cool toy to play, and enjoy enormous prestige in the community.
But what do I know. I admit I find it impossible to put myself in the shoes of people who have far more wealth than they could ever spend, their children could every spend, their grandchildren could ever spend, and yet still avidly pursue greater and greater wealth. Buying the stadium outright would not cause the owners or their children or grandchildren any conceivable hardship. And yet it's unthinkable to them.