There has been consternation that Microsoft billionaire Steve Ballmer is spending $2 billion to buy the LA Clippers. That’s more than four times the previous record for an NBA franchise. It has been dismissed as a “trophy” purchase detached from commercial reality but we’re not so sure.
WealthiFi has been banging the drum for ages about the only two “live” content assets a broadcaster must have are news and….sport. One only has to check the inflation of pricing in Super Bowl ads or Premier League soccer TV rights to wonder whether Mr Ballmer is purchasing a content asset which is inflating rather quickly in a low interest rate world.
As for Manchester United, a global franchise with a huge emerging markets fan base it’s current market capitalisation on the NYSE is just $2.7 billion, or 1.6x its revenues. Just thinking…..
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