Hello monkeys,
Recently I came about this article from Forbes: Major League Soccer's Most Valuable Teams
Here's a small excerpt from the article:
one team to sell out its stadium for the league's coldest-ever game, and the other to not only play its first home game in front of one of the world's biggest soccer crowds, but to maintain that popularity throughout its inaugural season. It's a tremendous statement for the league, and one that's hard to overstate.
And it got me thinking about how profitable investing in sports could be. Many sports teams are often gold mines for sponsorships, advertisements and much more. Not to mention the revenue from live TV, ticket sales, merchandise, etc. Take the example of LA Galaxy.
The LA Galaxy is now the league's most valuable team with a value of $315 million, a 19% increase from last year. The five-time MLS Cup winners generated an estimated $63 million in revenue last season, far and away the most of any team. Los Angeles is one of the league's founding franchises, and in its two-plus decades the club has provided the model for long-term success. The Galaxy currently boast the league’s most valuable broadcasting ($5.5 million per year) and stadium naming rights deals ($10 million-plus per year).
I'm sure some of you have recently heard about the USD 2.2 billion price for Houston Rockets.
Seller Leslie Alexander bought the team in 1993 for $85 million. That would make Alexander’s return on a $2.2 billion sale clock in at a Buffett-like annual compound rate of 14.52 percent. The cumulative return over the entire period is 2,488 percent.
With these examples in mind, any of you monkeys are interested in investing in sports teams? What future do you see in them..?
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