The Critical 'I'

Read. React. Repeat.

Monday, October 07, 2002

SPORTS TEAMS AND A BUYERS' MARKET
Here's a solid roundup of the current climate for buying and selling major pro sports teams. Worry not, we'll soon see a franchise sale price of $1 billion dollars--that's billion, with a "b"--probably for an NFL team. And all the attendant oohs and ahs will follow.

There are a lot of things in life I don't understand. One of them is the perception among sports fans that the high prices (hundreds of millions of dollars) being commanded in sports team sales means that a sport/league is in trouble, presumably because there aren't enough big-money individuals around to buy these teams. Fundamental supply-and-demand tells you the opposite is true: high demand from many suitors results in high prices. Wise up, folks!