Sports

NFL quarterbacks don’t do teachers any favors

14 Mar 2011

As U.S. public sector unions come under fire from governors and taxpayers, the nation's professional football players are embroiled in their own peculiar labor battle. There's not much common ground, but the popularity of the gridiron millionaires creates an odd contrast.

Mets owner could find financial solution in stands

15 Feb 2011

Fred Wilpon's grip on the New York baseball team is slipping as the Madoff trustee puts on the squeeze. He's liable to strike out trying to find a minority stake buyer. But there might be inspiration from the public ownership model of UK soccer clubs or the Super Bowl champs.

Only advertisements live up to Super Bowl’s hype

4 Feb 2011

A 30second commercial on the year's biggest U.S. TV event now costs up to $3 mln. That's 500 pct more than it was 25 years ago even though the audience has grown by just 24 pct. The hyperinflation may be warranted, though. These days, most viewers don't tune in for the game.

Liverpool FC board shows mettle in Red Sox deal

6 Oct 2010

In April, the soccer club's owners agreed to accept reasonable bids. Yet they are fighting a fair approach from the backers of the U.S baseball team. The offer clears LFC's debt but values the equity at nil, so they may as well resist. But the board must keep pursuing the deal.

Liverpool’s owners and lenders face deserved pain

23 Sep 2010

The UK soccer club is unlikely to repay 237 mln stg to its banks by next month's deadline. Even Blackstone's financial whizzes couldn't devise a viable refinancing. Liverpool needs a conservative capital structure under a solid owner. Getting there will be tough for all involved.

Banks get cold feet over football funding

20 Aug 2010

New rules from the sport's governing bodies in England and Europe are forcing clubs to rein in on debt. Banks that help finance player transfers are also considering pulling out. If lenders limit their support to cheering their teams, football's longterm health will improve.

UK soccer clubs can play a disgraceful fiscal foul

5 Aug 2010

The British tax authorities are playing hardball against the national Football Association. Portsmouth, a bankrupt club, is trying to come out of administration. But scandalous FA rules mean overdue tax won't be paid before other claims. The taxman is livid, and quite right too.

Betfair can shorten the odds on a successful IPO

26 Jul 2010

Going public is dangerous for tech companies. Ocado blew it. Interactive whiteboardmaker Promethean is far below its issue price. Now another child of the internet, Betfair, is looming. Like the betting exchange's customers, the vendors will only win if they are not too greedy.

Yankees boss will be missed on Wall Street too

13 Jul 2010

George Steinbrenner turned a $10 mln investment into a $1.6 bln team that is the Goldman Sachs of baseball a revered and reviled franchise. In his zeal for victory, he paid top dollar for talent and took no prisoners. Fans and financiers alike will miss him.

World Cup win prompts rare show of Spanish unity

12 Jul 2010

Outsiders often forget just how much regional divisions limit Madrid's ability to act decisively. But on Sunday, Spain was one nation, united in victory. The triumph on the pitch won't make debts disappear, but at the very least it should boost tourism and, importantly, morale.

Fitness First may fatten up on Asian obesity

28 Jun 2010

The private equityowned chain's idea of a Chinese IPO may exercise investor patience. Listed gyms have fared poorly, and Fitness First still carries heavy debts. But the rapid growth of Asian incomes and waistlines might make for a healthier second stab at equity markets.

UK budget coach can’t win economic match alone

15 Jun 2010

The new Office for Budget Responsibility can bring discipline, just like England football manager Fabio Capello. But would the OBR have foreseen the UK's fiscal thrashing? Is George Osborne sorting out the budget midfield? Coaches can help, but it's the team that actually plays.

Paying the penalty for World Cup fever

11 Jun 2010

The tournament gives Spain, Portugal and Greece a welcome distraction from their financial woes. For all the hype, however, any economic benefit outside host South Africa will be shortlived. The victors may enjoy a temporary boost. But, as ever, there will be many more losers.

Soccer clubs must share spoils to fix finances

22 Mar 2010

European soccer authorities are debating capping players' wages and restricting borrowing to improve clubs' dire finances. But the measures won't level the playing field and could strengthen top clubs. Lively competition will depend on a more even distribution of the spoils.

Financiers could prove unlikely heroes at Man Utd

2 Mar 2010

Goldman's chief economist Jim O'Neill is leading a group of rich fans studying a buyout of the debtladen UK soccer club. If the Red Knights can galvanise fans and find the money, that could convince the unpopular Glazer family it's time to sell. For once, bankers could be stars.

UK soccer suffers its own credit crisis

26 Feb 2010

Portsmouth Football Club is set to go into administration the first in Britain's top league to fail. Its demise has many parallels to the banking crisis: excessive debt, reckless owners, and overpaid stars. But at least football clubs don't carry systemic risks.

Even LeBron James won’t make MSG shares a winner

16 Feb 2010

Cablevision has spun off trophy sports assets into a new company, Madison Square Garden. Its fortunes hinge largely on struggling New York teams improving. Signing stars like James, though, may benefit fans more than investors. Courtside tickets look a better bet than MSG shares.

ManU scrambles to avoid financial penalty area

4 Jan 2010

The Glazer family needed an expensive paymentinkind note as well as bank debt to purchase thefootball club in 2005. That PIK not due until 2017 threatens to become a ballooning liability. Tapping the resurgent bond market would put the club on a sounder financial footing.

Yankees prove they’re the Goldman Sachs of baseball

5 Nov 2009

The team, which clinched its 27th World Series, is the sport s most valuable franchise, top moneymaker and pays more than anyone else for talent. And like the investment bank across the river from the Bronx, its success inspires either deep admiration or intense scorn.

Disney comes under China’s economic spell

5 Nov 2009

Vast domestic tourism and new infrastructure make a Disney resort in Shanghai worth the investment risk. It s a smart way for the House of Mickey Mouse to build the brand in a market where media is tightly controlled. But Disney must learn from past financial mistakes.