Quote:
Originally Posted by Jay Random
People who know nothing about valuing businesses seem to think sports franchises can be valued by Greater Fool Theory. They assume the price will go up forever because there will always be an even richer and dumber billionaire out there to buy any given team.
I wouldn't bet too heavily on that myself. The absolute top of the billionaires list – Musk and Bezos – are not interested in buying sports teams to play with. They're buying their own private space programs instead.
If the fashion in vanity assets changes, sports team valuations could wind up deflating rather rapidly.
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People who know a lot about valuing businesses can scream until they’re blue in the face that sports franchises shouldn’t be valued by your so called “greater fool theory”. They may technically be correct but that doesn’t change the fact the that’s essentially whats going on.
Strange Brews’ post above pretty much hits the nail on the head.