Though as a fan sports may look as an enjoyable form of
entertainment, however this is not the only thing. Sports as a whole are one of
the most profitable businesses around. Teams in general never pay for their
stadiums and they bring in 100,000s of thousands of fans each year for outrageous
amounts of money. Every single thing a team or league does makes money, whether
that is tickets, merchandise or specialty events. With sports being such big
money makers, should we see more investments by them?
MLBAM was a huge investment made by all 30 teams in the MLB.
Each team invested a small amount of money for a stake in the company. Bamtech
was used as the technology side for the MLB, as well as other sports. It is
basically the high-tech running of things like the website, analytics, and
advertising. Though MLBAM had been very profitable for the MLB teams over the
years, the real payout came in 2017. The Walt Disney Company, who already owned
a stake in the company decided to purchase the rest of Bamtech. This purchase
was valued at about $1.5 billion. Each team would get $50 million in pure
profits to use on whatever they would like for the upcoming season. This was
seen as a very strong investment. Throughout the entire process it made good
financial sense for the teams to invest in the up and coming company. Every
step of the way Bamtech made the MLB money, and should be viewed as the overall
picture of how to invest.
But, will we see other leagues do things like this in the
future? That I am unsure of that, due to the fact it takes many steps along the
way to get the process done. Major League Baseball did it right, they showed
that they could invest in something and turn it into a profitable business.
Sports leagues are basically large investment brokerages with their entities
underneath them. So it would be wise for each league to expand their businesses
further. In the short-run it could save money throughout the year, but in the long
run we could see even more profits from investing.
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