MLS to double expansion fee to $200m, hopes world doesn’t run out of rich guys http://www.fieldofschemes.com/2016/...200m-hopes-world-doesnt-run-out-of-rich-guys/
This is one of those sites that has long since jumped the shark. It's not worth giving the guy the clicks. It's always lazy.
True enough. It's just annnoying to see this kind of stupid from people who understand what's really going on. Or at least should understand. (1) Growing businesses frequently operate at a loss, because taking full advantage of opportunity may require even more investing. (2) If one business you own operates with a modest loss, but allows others you own to be profitable, it's well worth it. Neither of these ideas are particularly complicated, and anyone who fashions themselves as an economist or business expert should understand it. When my grad school hosted one of the first RSL execs (Steve Pastorino, I think), he said their overall business model was profitable if the team controlled both venue and broadcasting in addition to the team. That research was based on the darkest days of MLS (1998-2004).
I find it especially hilarious that, right at the bottom of the article, the links to related articles include headlines about the NHL's $500 million expansion fee. Apparently the NHL has no problem finding even richer guys.
People clearly have never read fieldofschemes before. The site shits on every single sporting league that get subsidized stadiums. That includes MLS, NFL, NHL, and anything else you can think of. In fact, the only positive story of note has been about Orlando and their stadium plans (if you can even call it positive).
I wonder if they oppose any use of incentives to draw businesses to a municipality, or if it's specific to entertainment, or even just sports. Seriously, malls and mega-retailers and car dealerships and factories all frequently get tax breaks, subsidised infrastructure, or other assistance.