RE: The Economics of Baseball

I agree with this but the owners do get to sell their asset at the end if they want to. And as we just saw, the NBA's Los Angeles Clippers got sold for $2B 3-4 years ago and now the Phoenix Suns are being sold for $4B. That's a $2B uptick in the value of that asset, in a smaller market. In just a few years.

While I agree the smaller market teams are at somewhat of a disadvantage, the local television contracts are shared among all 32 MLB teams. Not 100%. But a good chunk. Plus, I'm pretty sure if any of these teams needed a "loan" to go get better players with higher price tags, the banks would be lining up at the door to give it to them. It's pretty hard to eat through a few billion dollars $10-$25M/year at a time, especially when the underlying asset is doubling in value every 5 years (or less).

All professional sports are way out whack with the every day reality of the common man. The problem is, we just keep feeding them. Until that stops, this will just keep getting crazier.

Posted Using LeoFinance ^Beta