Are pro sports and D1 programs at risk for collapse?

[BoynamedWooPigSooie]

I have an extreme interest in Sports Business as it is my intended career path.  As I look at salaries for pro players, the lockouts, the "broken business models", prohibitively skyrocketing ticket and seat licensing prices, ridiculous sponsorship contracts, and the irresponsibility of ever increasing salaries of the players, coaches, admin, and the increasing value of the franchises for the owners. 

Middle Class America is dwindling, if you're fortunate to get some rentals, sell land, or get in on the good side of the housing market or run an established service business based on providing necessary services life is getting better and keeps on.  If you are a working stiff and depend on paychecks and commissions from an indirect source, it's getting slimer and slimer. 

So say in 20-25 years, could this sports thing be so out of hand that the whole industry could crumble upon itself?  The money has to come from somewhere at some point in the value chain?  These huge salaries for players and coaches is so out of whack there will have to be a regression eventually.

[HawgWild]

It has the appearance of a bubble to me and I've been told that all bubbles burst. The question then is when and I don't have a clue. I would have thought it would have been years ago.

[HawgWild]

An interesting article in today's NY Times on how the costs for sports are passed along to the TV viewing consumers. If Google and DISH can pull off their "end run" then expect costs to go up even more for the sports fan.

http://www.nytimes.com/2011/12/16/business/media/for-pay-tv-clients-a-steady-diet-of-sports.html?_r=1&src=me&ref=business

[HognotinMemphis]

It has the appearance of a bubble to me and I've been told that all bubbles burst. The question then is when and I don't have a clue. I would have thought it would have been years ago.

Your response would be my response as well. It cannot continue in current form. Sooner than later, the only buyers of tickets will be a few very wealthy individuals and companies. They will eventually price themselves out of the market...NOTHING goes straight up forever, not even taxes.

I know I am already losing interest in sports since I can rarely identify with the players...kids who but for athletic scholarships would be neither academically qualified nor interested in academic pursuits at their universities. And all the neck, body and arm tattoos and long hair are a turn off as well. would they all be criminals and gang members if not playing football and basketball?

[BoynamedWooPigSooie]

An interesting article in today's NY Times on how the costs for sports are passed along to the TV viewing consumers. If Google and DISH can pull off their "end run" then expect costs to go up even more for the sports fan.

http://www.nytimes.com/2011/12/16/business/media/for-pay-tv-clients-a-steady-diet-of-sports.html?_r=1&src=me&ref=business

Thanks for posting, I'm gonna check that out.  It's an obvious connection to make, the TV contracts is what is propping up the leagues.  It's actually the golden goose for any and all live events.  The media rights are the big revenue driver along with the live gate but the broadcast check lessens the importance of selling out the house.  The Television companies have to sell more ads, and when the economy takes a hit it's the cable networks that have their secondary income source from subscriptions that can outbid the networks and drive viewers to have to subscribe to cable or satellite if they want to watch the games and such, driving up prices every step of the way.

With the digital tv conversion and the excess of channels there is a huge need for inexpensive original programming, and the only medium that can't be pirated and shown for free online on streaming sites is live sporting events. 

My interest is that I've actually invented a competitive sport that I'm slowly launching and building support for manufacturing our ball design and retrofitting old tennis courts with our court markings.  That first TV contract for us launches us globally.

[BoynamedWooPigSooie]

Your response would be my response as well. It cannot continue in current form. Sooner than later, the only buyers of tickets will be a few very wealthy individuals and companies. They will eventually price themselves out of the market...NOTHING goes straight up forever, not even taxes.

I know I am already losing interest in sports since I can rarely identify with the players...kids who but for athletic scholarships would be neither academically qualified nor interested in academic pursuits at their universities. And all the neck, body and arm tattoos and long hair are a turn off as well. would they all be criminals and gang members if not playing football and basketball?

Awesome post!  I'll be quoting this in the business plan and opportunity statement.  Thanks!

[IronHog]

Middle Class America is dwindling, if you're fortunate to get some rentals, sell land, or get in on the good side of the housing market or run an established service business based on providing necessary services life is getting better and keeps on.  If you are a working stiff and depend on paychecks and commissions from an indirect source, it's getting slimer and slimer. 

Clarify this statement please?

[BoynamedWooPigSooie]

Clarify this statement please?

Ok lets do a comparison of Joe, 45 y/o W M, has a $43,000 a year job with XYZ inc., wife makes $32K @ her teaching job, couple kids whatever.  They make $75k a year which is a pretty comfortable living in Lowell, Arkansas.  Joe's father in law deeded over 6 rental duplexes before he passed, which they org. into a family trust.  Joe and wife purchase another 4 duplexes knowing the rents from the other 6 can cover the mortgage on the 4 new duplexes.  These rentals bring in 10k a month, renting both sides out @ $500. Monthly price is a little lower than market but it keeps em full.  Joe keeps back $1k a month from rents for upkeep and taxes.  Joe earns $9k a month on his rentals and as long as he pays the mortgages and taxes this income will be steady for the forseeable future, while his job @ XYZ inc is always up in the air, it's a when not if that they move operations overseas or consolidate into their corporate HQ facility.
So Joe and wifey make more off their rentals annually than they do at their jobs combined.  $150k a year is enough in NWA to really put back some savings and build some wealth over the course of 20 years or so.

Now there's Bob and his family.  Bob's coming up in a new post..... window keeps jumping as I type which is the most annoying thing on Hogville.

[BoynamedWooPigSooie]

Bob works in a factory that makes electrical motors, he makes about $38k a year with the overtime he puts in weekly.  His wife too works at a school making $32k annually.  Bob's last job was at a factory making electric pumps they shut that place down to move mfg to Mexico and China, he only made $31K there, Bob's job before that was also at a plant making electrical motors and they shut that place down to move operations closer to the HQ in Michigan.  Bob only made $25k a year there.   Him and his wife did what they had to get by, never having expensive cars, lived in a small home out in the country that they inherited from his parents, so they got by ok but never could save back enough to start a business, or buy commercial property.  They considered selling some land but they lived too far from the growth area and there werent any city services or cell phone service out there and the price wasn't worth selling.  Bob and his wife saved up enough to invest in 401K's and buy some stocks and mutual funds hoping that would mature for a decent retirement fund. 

The company Bob works for is an industry leader, profitable, and thought to be in solid position financially...it gets sold to a foreign company for a couple Billion dollars and slowly production starts being scaled back new hiring stops and the writing is on the wall... 

[IronHog]

Ok lets do a comparison of Joe, 45 y/o W M, has a $43,000 a year job with XYZ inc., wife makes $32K @ her teaching job, couple kids whatever.  They make $75k a year which is a pretty comfortable living in Lowell, Arkansas.  Joe's father in law deeded over 6 rental duplexes before he passed, which they org. into a family trust.  Joe and wife purchase another 4 duplexes knowing the rents from the other 6 can cover the mortgage on the 4 new duplexes.  These rentals bring in 10k a month, renting both sides out @ $500. Monthly price is a little lower than market but it keeps em full.  Joe keeps back $1k a month from rents for upkeep and taxes.  Joe earns $9k a month on his rentals and as long as he pays the mortgages and taxes this income will be steady for the forseeable future, while his job @ XYZ inc is always up in the air, it's a when not if that they move operations overseas or consolidate into their corporate HQ facility.
So Joe and wifey make more off their rentals annually than they do at their jobs combined.  $150k a year is enough in NWA to really put back some savings and build some wealth over the course of 20 years or so.

Now there's Bob and his family.  Bob's coming up in a new post..... window keeps jumping as I type which is the most annoying thing on Hogville.

OK, but if it really goes south that rental income will become filled with squatters......


That is about the only way I see rental property being good....if someone sets you up in it.........getting started from scratch is simply an equity building exercise/headache for 15 years by my math.  People tell me I'm wrong, but I just don't see it....

[BoynamedWooPigSooie]

Well you never pay retail man.

Sheriff's auctions and foreclosures straight from the bank are the way to go, single unit homes I'd stay away from unless you're flipping them... like I said in the OP 'on the good side of the real estate market'

If you want to know a good skeezy slumlord way to earn crazy returns you do what one of my clients in OKC does.  This old jew-bastage he built his wealth by snagging up motels, had a little empire going, got shady on his taxes and a divorce exposed him so he lost most of that.  He built back up by buying abandoned lots in Sheriff auctions, and bidding ridiculously low on run down homes... eventually there's a fire and a payout on insurance.  He hires illegals to shoddily frame and drywall for near nothing, he never builds a home back up for more than $15-20k, then has his guy put signs up around town with 0 down 0% owner financed home for sale in the shady part of town.  Often it's illegals and the downtrodden that buy, they never receive a deed, but a piece of paperwork stating it's a claim on the deed they can envoke once a certain amount is paid.... they pay their monthly fee, sometimes the prperty manager pockets it, sometimes the wife pockets it, often the bookkeeping is fudged or never done, and he'l claim they're behind or find some reason to evict them and repeats the cycle over and over and keeps commiting insurance fraud over and over.

The rents bring him in at least $65,000 monthly.  I'd be surprised if he doesn't have at least a 1/4 Mil a year in insurance claims.

[IronHog]

Well you never pay retail man.

Sheriff's auctions and foreclosures straight from the bank are the way to go, single unit homes I'd stay away from unless you're flipping them... like I said in the OP 'on the good side of the real estate market'

If you want to know a good skeezy slumlord way to earn crazy returns you do what one of my clients in OKC does.  This old jew-bastage he built his wealth by snagging up motels, had a little empire going, got shady on his taxes and a divorce exposed him so he lost most of that.  He built back up by buying abandoned lots in Sheriff auctions, and bidding ridiculously low on run down homes... eventually there's a fire and a payout on insurance.  He hires illegals to shoddily frame and drywall for near nothing, he never builds a home back up for more than $15-20k, then has his guy put signs up around town with 0 down 0% owner financed home for sale in the shady part of town.  Often it's illegals and the downtrodden that buy, they never receive a deed, but a piece of paperwork stating it's a claim on the deed they can envoke once a certain amount is paid.... they pay their monthly fee, sometimes the prperty manager pockets it, sometimes the wife pockets it, often the bookkeeping is fudged or never done, and he'l claim they're behind or find some reason to evict them and repeats the cycle over and over and keeps commiting insurance fraud over and over.

The rents bring him in at least $65,000 monthly.  I'd be surprised if he doesn't have at least a 1/4 Mil a year in insurance claims.

This just reinforces my idea that there isn't much ethical money in the rental business........

I could have made a fortune chopping up land to sell to "rural americans" to put tar paper shacks and trailers on before the crash........  I'd rather work for a living. 

[BoynamedWooPigSooie]

This just reinforces my idea that there isn't much ethical money in the rental business........

I could have made a fortune chopping up land to sell to "rural americans" to put tar paper shacks and trailers on before the crash........  I'd rather work for a living. 

I hear ya, I'm not sure where there is ethical money anymore past doing your job the best you can, getting your paycheck, and doing it all over again the next day for years.

I tend to gravitate towards services and products where the work and the results are easily seen and easily compared.

[Ash]

OK, but if it really goes south that rental income will become filled with squatters......


That is about the only way I see rental property being good....if someone sets you up in it.........getting started from scratch is simply an equity building exercise/headache for 15 years by my math.  People tell me I'm wrong, but I just don't see it....

I know several folks doing the rental thing. The only ones making money at it are the ones who's mom and dad took care of the initial investment.

[Ftsmithmike]

I know several folks doing the rental thing. The only ones making money at it are the ones who's mom and dad took care of the initial investment.

Or those who did it for 15 years without making a profit and are now in the pure profit range. A Duplex can be built in a rural town for 95,000 and the payment is 700 a month. Rent can be 550 a month for three bedrooms and you will never be empty. In 15 years the rent will likely have climbed a bit so you can expect an even greater income.

Of course it's easier to make money if it was handed to you paid off.

[OldPoop]

OK, but if it really goes south that rental income will become filled with squatters......

That is my fear.   My late father in law tried rentals 20 years ago after he retired.  He eventually had to sell everything because it became too much of a headache.  If someone quit paying their rent it would take up to a year to legally get them out and they would often leave the place destroyed as a way to get even.

With our caring and loving government now wanting to take care of (control) us from cradle to grave, once unemployment gets much worse, I can't see a landlord being allowed to kick destitute families out into the street.  Most likely he will be given some type of nearly worthless government iou each month, while his property deteriorates and he goes bankrupt.  Eventually the government will own most rental properties.

[Ash]

Or those who did it for 15 years without making a profit and are now in the pure profit range. A Duplex can be built in a rural town for 95,000 and the payment is 700 a month. Rent can be 550 a month for three bedrooms and you will never be empty. In 15 years the rent will likely have climbed a bit so you can expect an even greater income.

Of course it's easier to make money if it was handed to you paid off.

Yeah I know a guy that had two houses and a condo on a lake given to him by this parents. He makes a ton of money off of them.

[HawgWild]

The OP (or someone) needs to change the subject line of this thread.