Some people continue to make a handsome profit from our enduring appetite for live sport.by Andy Davis / June 20, 2012 / Leave a comment
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What, I wonder, do the stockbrokered classes do with their money, having sold in May and gone away? The summer season being so liberally punctuated with premier sporting events—the Olympics above all—might they not feel tempted to divert some of their now-liquid assets into a sporting venture, to seek returns where they find entertainment?
For those tempted in this direction, the stock market provides few direct opportunities. Sports clubs such as football teams tend to be private businesses and have good reason to remain so, given that most are entirely unacquainted with the routine drudgery of making profits for their shareholders. Few other businesses, aside from investment banks, routinely pay out 50-60 per cent or more of their revenues as wages and bonuses. (Whether either will be able to carry on like this remains to be seen, since new regulations in football and banking are on the way, though personally I wouldn’t bet against the investment bankers.)