Business and Sports

The Business of Owning a Sports Team

Nathan Hiltzik ’25

Owning a sports team can be a lucrative and exciting business venture for many individuals However, like any other investment, this venture has benefits and drawbacks. One of the main benefits of owning a sports team is the potential for high profitability. Sports teams generate significant revenue through ticket sales, merchandise sales, and broadcasting rights. If a team performs well, the franchise's value can increase significantly. In addition, owning a sports team can provide pride and prestige, as the owner is associated with a well-known and beloved organization Besides the potential for long-term appreciation of the investment and the prestige of owning a professional sports team, other benefits include specific tax benefits, a potential vehicle for estate planning, the ability to operate a multi-generational family business, and the opportunity to partake in various philanthropic efforts and causes Owning an interest in a professional sports team can offer a meaningful opportunity to give back to the local community and can provide owners with many exciting memories for years to come.

Another benefit of owning a sports team is the opportunity to network with other successful business owners and entrepreneurs. Sports teams are often owned by wealthy individuals who have achieved significant success in different industries Owning a sports team can provide access to these networks and allow the owner to forge valuable relationships with other influential individuals

Owning a sports team also has drawbacks One disadvantage is the high cost of entry The cost of purchasing a sports team can be substantial, with many franchises costing hundreds of millions of dollars. In addition to the initial cost, the ongoing expenses associated with running a sports team can be significant Having a diversified investment vehicle such as an ownership interest in a professional sports team can potentially be invaluable during times such as the current pandemic as this particular asset has historically held its value during market downturns better than other investments and can act as a defensive asset against negative market pressures

Another drawback is the unpredictable nature of the industry The success of a sports team is heavily reliant on factors outside the owner's control, such as player injuries and performance. This can make it difficult to predict the team's future profitability and create financial uncertainty for the owner.

Another significant drawback of owning a sports team is the public scrutiny that comes with it. Sports teams are highly visible organizations subject to intense media coverage and public opinion This can make it difficult for the owner to make decisions without facing public criticism

In conclusion, owning a sports team can be a profitable and exciting business venture. It provides the opportunity to generate significant revenue and network with other successful individuals It also comes with significant costs and uncertainties, including high entry costs, unpredictable industry dynamics, and intense public scrutiny Ultimately, it depends on the individual's goals, risk tolerance, and financial situation

Are Super Bowl Adds Really Worth it?

Eleanor Abitbol, ’26

Is a 30-second commercial in the Superbowl worth it? Every year, the Super Bowl is watched by tens of millions of people. In fact, this year, the Super Bowl had over 110 million viewers, over 50% of whom are tuning in just to watch the commercials

The Super Bowl is clearly different from everyday TV, as most people tend to“run away” when ads come on The number of viewers and how many are focused on actually watching the commercials makes a 30-second commercial in the Superbowl worth it

There is no better place than the