Cup loss wouldn’t be end of the world for Qatar 31 May 2011 Even if it happened, losing the right to host the soccer World Cup might do no more than dent the $77 bln of infrastructure spending promised by the Gulf nation in the run up to 2022. But it would be more than just embarrassing to be stripped of the chance to hold the event.
Mets deal gets even a financial star starry-eyed 26 May 2011 David Einhorn, the hedge fund boss who famously shorted Lehman, is poised to buy a $200 mln stake in New York's lesser baseball team. Yet the managers of the Bernie Madoffstricken Mets share some of the bankrupt bank's flaws. Sports investments are just different.
Arsenal deal exposes unlevel U.S. sports field 11 Apr 2011 Stan Kroenke's $1.2 bln soccer club acquisition means half the British Premier League is now in foreign hands. By comparison, U.S. teams have few nonAmerican owners. That should finally start to change as wealth and sports like basketball increasingly globalize.
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.