| For years, purchasing a professional sports franchise was considered an ego-stroking move for the extremely rich. It certainly wasn't considered a savvy investment decision. But that's beginning to change. In 1999, Dan Snyder purchased the Washington NFL franchise for $750 million. This summer, he sold the team for a record-setting $6.05 billion. That's an annualized return of just under 10%. And that excludes all the income and positive cash flow the business generated over his 24 years of ownership. Snyder's success is not unique. A detailed study on the values of sports franchises from 1991 to 2016 found the following annualized increases in value: - Major League Baseball franchises: 10.5%
- National Football League franchises: 12.5%
- National Basketball Association franchises: 12.7%
- National Hockey League franchises: 12.3%.
These are annualized rates of return comparable to - if not better than - the stock market's. And these annualized rates of return do not include the annual cash flow and income that franchises produced for their owners during those 25 years. Obviously, most of us can't purchase a pro sports franchise. That luxury is still reserved for the uber-wealthy. We can, however, purchase a small stake in a company that owns two of the most coveted sports franchises in North America... For just around $200. (Take THAT, Dan Snyder.) Even better, right now we can get in at a big discount to what those franchises are actually worth. | 
No comments:
Post a Comment
Keep a civil tongue.