CNBC -- critique. Message Board

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Pastimes : CNBC -- critique.

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To: Toby Zidle who wrote (1166)	7/23/1998 4:38:00 PM
From: Don Dahler	Read Replies (1) of 17683

It was illuminating. For this first report I concentrated on the teams with the most debt, and there are quite a few of them. The public-held teams seem to be in better shape debt-wise, although they aren't exactly making money. In fact, outside of a handful of NFL and NBA teams, very few professional franchises make a meaningful profit. Only five MLB teams made money last year. Operational expenses coupled with star salaries eat up most of the revenues, despite big TV contracts. But there are some examples of team owners, like Peter Magowan of the S.F. Giants, who've taken on enormous debt in order to "save" a team for their community rather than allow it to be moved to another city. For most owners, sports is a thin margin endeavor. Better be in it for the love of the game. Of course, the debt really doesn't matter if the team gets sold for a ridiculous amount. Looks like the report will air this next Monday on Business Center (7pm eastern, 4pm pacific). Let me know what you think. I'll be doing some follow-ups related to venue financing and due diligence on prospective owners sometime in the future.

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