With millions out of work due to the COVID-19 pandemic, how concerned are you about the potentially depreciating assets in the form of professional sports teams and what it means for the bottom lines of billionaire owners? Some? Very? The most? Well, don't worry because Sports Business Journal did some digging and it seems that the richest people in America will probably be OK.
For example, here's the outlook for Houston Rockets' owner Tilman Fertitta. Via SBJ:
"“The guy’s world is crumbling, and he’s not even answering the phones to hear people who have reasonable offers for his team,” said one source. “If Fertitta doesn’t think he needs to sell, then no one in the world will think that across the major leagues.”"
With a reported net worth of less than $5 billion, Fertitta will apparently survive. If it takes years to get fans back in stadiums and the Rockets' value goes in the tank, he might only be worth $4 billion. And unless the NBA folds forever, Fertitta can still sell the team at a huge loss for enough money for his entire family to live comfortably forever.
"Most industry experts agree that if the sports world returns to a semblance of normalcy, there’s ultimately little risk to the long-term value of these assets."
So just hold on, billionaires. This too shall pass. And while you wait for your franchise valuations to balloon again, please continue to pay your employees.