What fuels franchise valuation growth ... and the payroll/revenue % landscape
"A sports team is almost always worth more to a very rich person than it is to (an investor or firm) who only cares about its cash flows," Dodson said.
de Balmann: "Sports teams are a bit of a vanity asset, like owning a Picasso, and the highest bidder is going to be a very rich person who wants to own the team, so they (can) call themselves an owner of a sports team."
Gemini estimate of margins (only two publicly owned teams in Braves and Blue Jays reporting financials - and Jays are within a larger company): "On a league-wide basis, MLB’s consolidated EBITDA (Operating) Margin typically hovers between 7% and 12%, while its Net Income Margin is significantly lower—frequently close to 0% to 5% once stadium debt and player amortization are factored in. .... While a professional sports franchise is a massive cultural institution with unmatched local footprint and media gravity, on a pure Wall Street balance sheet, an individual baseball team functions much more like a prominent regional mid-cap business than a multinational titan."
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