When It Comes to the Owners, Follow the Money
Published February 28, 2008
On the surface, the two stories wouldn't seem to have much in common. Chicago Cubs owner Sam Zell said earlier this week that he would definitely consider selling the naming rights to Wrigley Field. At roughly the same time, Dallas Cowboys owner Jerry Jones was heard saying (again) that he believes NFL owners will vote to opt out of the current labor agreement.
Two different sports, two completely unrelated issues. Hardly. Like everything else in sports these days, the two stories share a common parent: money. In particular, the root is the ever-spiraling cost of owning and running a professional sports franchise and what to do about it.
There was a time not all that long ago when old white men bought sports teams for the pure ego and hobby of it. That era was characterized mostly by the alarming lack of business acumen these owners brought to their hobby. Whatever rigor they applied to their "real" businesses, the ones that made them all the dough, was thrown out the window when they dabbled in sports.
Still, this didn't necessarily cause them any great concern because the value of their teams continued to climb ever higher, seemingly defying all the laws of economics. Owning a sports team became the ultimate boom enterprise. The downside, at least from a fan's perspective, is that the economic health of their sports eventually grew worse. Most owners, more interested in stroking their egos than making good business decisions with their teams, wouldn't hesitate to sign the next great superstar to an even more outrageous contract then the last great superstar. Ticket prices rose.
Eventually, a different breed of owner started making their way into pro sports. Buying at ever increasing prices and taking on the kind of crushing debt that made the old white guys shake their heads, this breed grew up on budgets and business plans and didn't see any reason not to translate that into their sports properties. Indeed, it was a necessity. This breed has no less of a desire to win than their forbearers; it's just that given what they paid for their team, they aren't as comfortable dipping into their personal fortunes any further in order to meet their debt payments, let alone such trivial matters as player acquisition expenses.
Zell and Jones are two such owners. Zell is a somewhat reluctant owner of the Cubs, having acquired them when he purchased the Tribune Co., the Cubs' previous owner, last April for more than $8 billion. Zell's interest seemed, at least at the time, much more focused on the media properties under the Tribune banner and not necessarily the Cubs.
- When It Comes to the Owners, Follow the Money
- Published: February 28, 2008
- Type: Opinion
- Section: Sports
- Filed Under: Sports: Baseball, Sports: Football (American)
- Writer: Gary D. Benz
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Ticket prices are not set by player salaries. Ticket prices are set by demand. Demand is created by winning.