03 March 2008

Big-Time Losers?

Joe Nocera, in the current issue of Play, reveals why owning a franchise in one of the three main sports leagues in U.S. - - football, basketball, and baseball - - is to "enter into a club in which is it nearly impossible to come away a financial loser," even if your team is a perennial dog in the standings.

Nocera's salient point is that with such a limited supply o major-league teams for sale, there will always be a deep-pocketed buyer around the corner willing to pay to become a big-league franchise owner.

It's another classic example of the Scarcity principle, which proves that people want more, and will pay more, for what they can have less of.

Read the full article here.

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