cranberry
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- Joined
- Oct 31, 2002
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outofplace said:cranberry said:outofplace said:These are businessmen. Some of them simply won't pour more money into a business than they could ever get out of it.
Baseball owners tend to make most of their money, historically, on the sale of the club because of the crazy rate of increase on franchise values. The only intelligent business strategy is to invest in your baseball operations, including players, to ensure optimum value increase. People pay way too much attention to annual operating revenues in these discussions.
I never said they were making intelligent baseball decisions. Being successful in other areas doesn't mean you will run your franchise well.
I see cran's point, but it still makes a difference if the money is coming from team revenue rather than the owner's pocket. And even when it comes time to sell, none of these franchises will ever have the value of the Yankees.
Of course it makes a difference, which is why it will always be better to be the owner of the Yankees and the Royals and why a franchise in a big market will always be more valuable than one in a smaller market. You get what you pay for.
But a lot of club investment is done with borrowed money because money is relatively cheap with today's interest rates. I wouldn't be surprised if the Yankees carried one of the higher debts in baseball. Doesn't mean they're about to go broke, though, because their growth (franchise value) is far outpacing their debt.