RealGM

This is amazing. They have made money in only 2 of 28 yrs? And I thought the banking system and auto industry were messed up.

http://www.indystar.com/article/2009031 ... 8/SPORTS04

Sadly, I bet there are a bunch of these types of stories over the next 18mos in all sports. The business model is clearly broken.

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The money in sports teams is not in the day-to-day profit but in selling the team down the road for a 10,000% profit.

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e4Nf6 wrote:[standard reply]

The money in sports teams is not in the day-to-day profit but in selling the team down the road for a 10,000% profit.

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Since buying an asset is supposed to be an analysis of future cash flow (clearly that implies the Pacers are worth nothing), I'm going to say its all about ego and the cache of being able to say that you own a professional sports team.

A sports team is certainly not an investment, it's a really really expensive hobby. This is why people like Bob Johnson won't be in this very long. They're good business people who know how to make money with investments, but unless he comes to the realization he just won't make money (at least on a consistent basis) by owning an NBA team NOT in a top market then he will probably end up selling it to someone who does realize this and has deep pockets.

It's kind of like being a regular citizen buying season tickets. That is a good % of one's annual income to have those seats. That same % of someone who is worth billions is owning the team and doing with it as you wish.