Canuck Oranje Posted October 5, 2008 Share Posted October 5, 2008 Keep in mind that it was the failure of Atari for Warner Commnunications more so than a souring on the NASL that forced Steve Ross's hand on the NY Cosmos. On the Hunt family and the Kraft family, both are into the next generation and we don't know what real world investments these guys have made. Anschutz is the wealthiest of these guys but he also is involved in some more volatile businesses. The closest financial situation to that what is happening today is about 1929-1930. I doubt that there is anyone on this board that has experienced that period and had memory of it. A year ago no one would have thought that AIG, Lehman Brothers, Wachovia (6th Largest US Bank) would have been shaken to the core. Remember too that MLS is a single entity. In the US, this is an access to credit crisis and has gone beyond just a housing crisis. When the State of California and GE are having problems finding cash, I doubt MLS is in a position to raise cash on its own. That means it will need to go to its partners if it is having cashflow challenges. Quite frankly, even the EPL and the NFL are likely going to be affected. Debt-laden EPL franchises could be under pressure. And the NHL. In an odd way, it may actually be beneficial to my city/region's chances of securing an NHL franchise. While Balsillie's net worth has fallen by about $500 million, RIM is financially solid and not in a cashflow crisis. Extending that logic to the MLS expansion, Saputo/Gillet, Melnyk, and Kerfoot and Company might actually be better position better going forward if they each can find the $40 million cash. Gillet may have problems with that. Link to comment Share on other sites More sharing options...
Canuck Oranje Posted October 5, 2008 Share Posted October 5, 2008 http://sports.espn.go.com/espn/otl/columns/story?columnist=joyce_gare&id=3622898 Link to comment Share on other sites More sharing options...
tmcmurph Posted October 5, 2008 Share Posted October 5, 2008 quote:Originally posted by DoyleG To say the big money guys behind MLS wouldn't be affected is pushing it a great deal. The multi billionaire club usually does very well in these downturns. It takes a while but they can buy up stuff cheap and wait for the next upturn. Look at Warren Buffett! Currently buying. I think the rest are going to do just fine. Currently every one of the 200 million US citizens who are old enough to pay taxes has given $3500 to the bankers directly with the bailout. The Fed can print money and devalue the currency via inflation as they have been doing for the past 8 years to soak up the rest of the multi-trillion dollar mess. Link to comment Share on other sites More sharing options...
Richard Posted October 6, 2008 Share Posted October 6, 2008 ^ And banks continue to foreclose on people at the rate of 2,000 per day, yet the unscrupulous brokers who made millions selling the mortgages to folks who were duped and should never have qualified are laughing all the way to the bank. As usual the American system rescues the rich. The tragic irony is that not only are the victims of this scam going to lose their houses they will have to continue paying their taxes to their government who is passing the money on to the very people who screwed them. Plus the people's representatives on Capitol Hill added a further $150 billion of pork to the bill they passed! Link to comment Share on other sites More sharing options...
john tv Posted October 6, 2008 Share Posted October 6, 2008 Richard go on your knees and say,thank God I live in Canada. Link to comment Share on other sites More sharing options...
Richard Posted October 6, 2008 Share Posted October 6, 2008 ^ I do, at least metaphorically, almost every day Link to comment Share on other sites More sharing options...
john tv Posted October 6, 2008 Share Posted October 6, 2008 I am so glad we are so far apart the US and Canada and considering the closeness, I must applaud our politician for not playing copy cat. While I was living in the States employed as a Vice president for our South Eastern Division out of Atlanta Georgia,this after my 5 year audit stint,I became aware of the differences.I asked for a transfer back to Canada and got it.Back to TO.I had all the opportunities to experience and live that American dream.That dream was surrounded by big slum areas,racism and drugs for starters and no proper medical coverage for many. I know it so well and I have seen more towns and cities than 99.9 % of all Americans. Anyway we will see if we can survive all that crap and although I am very pessimistic it will get better in the long run.I even feel so fortunate to have lived in all these exciting times,starting with WW2. How long it will take to get back to normal well I don't know and it maybe 1 year or 5. I just hope that Canada with all those natural resources will be hurt the least. It will also be very interesting how this MLS franchise will play out. Will these investors stick around and pay that hefty fee knowing the economic conditions and obvious downturn.I would not,maybe Joey was the smartest one after all realizing what was about to happen. Will these gurus from the States maintain that arrogance?I hope those yo yo's learned a real lesson about Canadians at the all star game. Link to comment Share on other sites More sharing options...
Richard Posted October 7, 2008 Share Posted October 7, 2008 Maybe the world needs to move away from the US dollar to the Euro. Link to comment Share on other sites More sharing options...
Eric Posted October 7, 2008 Share Posted October 7, 2008 It will happen in the next 5 years. Link to comment Share on other sites More sharing options...
john tv Posted October 7, 2008 Share Posted October 7, 2008 It will be interesting to see if this financial mess will result in much lower attendances at all major sports events.The MLS may very well become one of the first victims if this continues to develop this way. I agree that for starters they should move away from this very volatile US dollar.It has lost it's strengths and with it it's future. Link to comment Share on other sites More sharing options...
john tv Posted October 7, 2008 Share Posted October 7, 2008 oops Link to comment Share on other sites More sharing options...
dbailey62 Posted October 8, 2008 Share Posted October 8, 2008 quote:Originally posted by Richard Yes, if MLSE prepares a consolidated tax return. But you can be sure few business operations are kept going for the sake of their losses rather than their profits. I wasn't thinking in terms of MLSE. Perhaps the Marlies lose money but that would be just about it for them. Link to comment Share on other sites More sharing options...
martinm182 Posted October 14, 2008 Share Posted October 14, 2008 Why do they always say "SSS = Profit" Where are Columbus, Colorado, Chicago and *Chivas USA* on the profit list? *(I guess they don't count because it's not really their stadium) Link to comment Share on other sites More sharing options...
Bill Ault Posted October 14, 2008 Share Posted October 14, 2008 ^ But the stadium themselves in all the cases above DO make money.. Link to comment Share on other sites More sharing options...
Richard Posted October 15, 2008 Share Posted October 15, 2008 ^ Which in large part is why Kerfoot wants his own stadium in Vancouver rather than paying rent for BC Place and having no control or share of other rentals, concessions parking revenues etc. I'll wager than in most cases where a club notionally owns its own stadium it is done under a different corporate entity from the team itself with the only linkage being common shareholding. Enables keeping financial reporting separate, the team operations can be left to break even or run at a loss while the stadium operation remains profitable and the shareholders are happy. Link to comment Share on other sites More sharing options...
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