Hey TSB,
Okay, okay!! Look, I was responding to Dumber's point which was that investors in baseball are only interested in money, and I'd like to make clear (which I did not do the first time), this does not mean I think they have a political agenda.
I don't think his point was they were only interested in money, but that money is the basis for everything else that come along with it. It's probably fun to hobnob with the players, and be the center of attention at cocktail parties, but your lifestyle won't stay that way very long if you don't concentrate on the money end. The days of the eccentric, megabuck owners who treated ball teams as hobbies (Yawkey, Finlay) are over.
I posted this because I found it interesting (and validating!) that Warren Buffet, who is generally considered to be a great investor, wasn't, and isn't, recommending the baseball industry as an investment unless you also love it. That was the point that I was trying to make - that most investors in professional sports actually do follow that advice and invest not only for the money.
There is a difference in investing in something and buying and running it. Buffet invests in a lot of things, without any intention of running them, so it really doesn't matter if he actually likes an industry, because he's never going to be part of it. People like Lucchino are buying into teams for the opportunity to run and manage them. So, they had better have a passion for the business, because its what they are going to be doing 24 hours a day for years. Which makes them no different from any other owner/operators in any other business. And they are doing it with an eye to the bottom line.
So, you've done a great job pointing out that if they all sell now, they'll make piles of money.
Yes. The ball teams have turned out to be a good investment. But, as the mutual funds say, past performance is no guarantee of future performance.
He also says that since there are a limited number of teams and folks with more money the value will likely go up, like fine art. Do you think the values will always go up?
Don't know. Depends on a lot of variables. I don't think I'd want to be an owner in the NHL right about now. Or the owner of a small market baseball team who overpaid for it a year or two ago.
Is that because of the limited number of teams?
Well, nobody ever went broke being on the right side of the supply and demand curve.
So anyway, Buffet isn't perfect, but he's darn good so I thought his POV was worth mentioning!
Yes, but it didn't address the issue.
Quote from: TSBench on Yesterday at 01:57:14 pm
And, to get back to Hair's point, even if the Sox had turned out to be a mediocre investment, it would still be run like a business in the pursuit of money and not to further some political agenda.
I think Hair, bjohns and others misunderstood the point I was trying to make. Unlike Steve N who started the thread and others who chimed in, I didn't intend to suggest that the Red Sox or Clear Channel were furthering their political agendas, liberal or conservative. I was suggesting that it was more along the lines that they want to invest in sports because it's fun (and high status) whether or not it's good financially.
Fair enough. But I think most of these folks, especially the corporate owners, would pass on the 'fun' and 'status' if they didn't think it was a good business move financially. The days of the dilettante owner are over. Even folks to whom you'd think the money means nothing (say, Paul Allen) aren't looking for ways to throw it away.
Regards,
TSB
