Followup on last week’s economics meltdown

Last week I wrote an article about the continued insistence by Ottawa’s ownership that the team has to get to the second round just to break even. And, specifically, what bunk that is.

Well, today Grantland ran an amazing article (By Malcolm Gladwell of all people) on the nature of investment in sports. He’s talking about the New Jersey Nets, but you could take his article and drop Melnyk and the Ottawa Senators right into his premise. Sure, it’s Ottawa – not Brooklyn. The profit potential isn’t in the same stratosphere. But his point is well taken: you don’t buy a sports team to make a profit. You buy a sports team first because of all of the peripheral profit it enables, and second because it’s a luxury item.

Anyway, well worth the read.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s