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Originally Posted by Rain Man
I've always been curious about this, too. Having non-liquid assets doesn't necessarily mean you have a lot of cash available. Guys like Mark Davis and Mike Brown don't really have massive assets other than their teams, so it seems like they pay everything via the team's cash flow. Granted, I suspect that NFL teams are highly profitable so the model must work, but those teams need the money, whereas numerous other teams could be run as a hobby.
I kind of wonder if we could at some point have teams fold if the big-money TV contracts take a hit. In the 1920s teams folded because expenses were really low but revenues were also really low. Then we had a long period of time where expenses were relatively low and revenues grew rapidly. Now we're in an era where expenses are really high. Some of these legacy teams need revenues to be really high to cover those expenses, so if the revenues go down, what happens to them?
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I think you can look at the Packers to see how this can or can't work. They are a publicly traded company so their financials are available. I'm far from a financial analyst so I can't really comment on how they are doing, but they don't have "family money" to cover expenses. It is pretty much NFL revenue and little else. They can however raise capital by issuing new stock certificates.