Quote:
Originally Posted by DJ's left nut
Then why are there minority owners?
Nobody gives a shit who owns 5% of any baseball team. At all. They have no meaningful voting rights and little more access to anything 'fun' than your average high-rolling season ticket holder. They gain no status from it unless they were already famous.
For guys who own a relatively small percentage, they don't get the benefits you're describing. It's strictly an investment mechanism. For many it's the long term investment/equity value, but it's no different than any investment in that regard - you expect long-term returns and periodic dividends. If they weren't getting that, they'd put their money elsewhere.
Owners have been crying poor for as long as there have been owners. If the elimination of the reserve clause didn't kill the profitability of owning a baseball team, nothing will. They're absolutely profitable.
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Main reason is very few people in the world can write a check for a billion dollars by themselves. Donald Balmers of the world are very rare. It's still a status thing in those circles. If you are a bank president in St. Louis and have 5% of the Cardinals, its a big deal on the resume and who they hang with it.