ravidubey
DCC 4Life
- Joined
- Apr 7, 2013
- Messages
- 23,530
If this was a normal investment, it would have to generate $500–800 million of annual profit
But it's not normal at all
- Self-Fulfilling Valuation Increases valuations rise over time based on revenues and scarcity. An NFL investment is all but guaranteed to grow, especially it's biggest and brightest.
- Inflation-protected most of the team's assets: media rights, ticket prices, and stadium value/real estate, rise with inflation. The investor is protected. This is huge.
- Scarcity and Prestige few teams come up for sale. Rare things are nearly always worth more. The prestige of owning it is worth an intangible amount as a result of this rarity and brand recognition. Elon Musk is now a trillionaire-- he might buy the Cowboys without even thinking about the money because there's only one. But it's because of that prestige that the Joneses will never sell