Economist explains large risk in Dodgers’ sale
Smith College economist Andrew Zimblast joined the show to talk about the Los Angeles Dodgers’ sale.
Zimblast said that generally franchises send for somewhere over two times their revenue. The Dodgers don’t even get close to enough revenue to justify a sale over $2 billion. He said that the owners will also have to invest in refurbishing the stadium, which will cost a lot.
Zimblast said part of this is “a vanity purchase.” And also said there may be a television rights bubble. He said that advertisers love sports rights because you won’t DVR past the commercials. But he’s not sure the rights will keep on going up.
Dan asked Zimblast the most valuable franchises in the world. He said the Yankees and Manchester United are up there, but you can’t say that the Dodgers are worth X amount, and that means those franchises are worth twice that.