Wednesday, October 10, 2007

The price of the Predators

The bottom line here is that a group of well-heeled private individuals are spending $193 million on an asset that was first purchased a decade ago for $55 million, was valued by Forbes last year at $134 million, and has little to no chance of ever finding long-term operating success as a local franchise. The buying and selling of sports teams is a shell game in which excitement-hungry investors overpay for assets, extract fiscal welfare from municipal governments, and then later take profits when new overeager investors step in to overvalue the asset even further.
An interesting piece, to be sure.

I'm not sure I agree with all of claims made here, but it's good to see more of this sort of analysis coming out of Nashville. For all I know, the general public there may well be behind the additional subsidies.

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