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View Full Version : My Stupid Return on Investment Analysis - Cont.


KingXerxes
08-23-2002, 11:29 AM
Okay - Let's forget cherry picking individual stocks, and say that Jerry and his group invested their $22 million in a fund which was directed indexed to the Dow Jones Industrial Average.

Invest $22 million in 1980 (aasuming 1/1/80).

Have $230 million today.

Still better than he's done with the White Sox, on a passive investment with no headaches.

Of course he wouldn't get the benefit of the lucrative contract amortizations.

voodoochile
08-23-2002, 11:35 AM
Originally posted by KingXerxes
Okay - Let's forget cherry picking individual stocks, and say that Jerry and his group invested their $22 million in a fund which was directed indexed to the Dow Jones Industrial Average.

Invest $22 million in 1980 (aasuming 1/1/80).

Have $230 million today.

Still better than he's done with the White Sox, on a passive investment with no headaches.

Of course he wouldn't get the benefit of the lucrative contract amortizations.

Again, that would be the whole profit in today's market. We don't honestly know how much profit beyond the capital increase the Sox have earned, nor do we know how much salary the chairman has earned - which some might call profit. It wouldn't take much profit for the Sox to blow that market fund out of the water by $50 million or so ($3 million a year would do it). No, I don't know for a fact that that is the case, but I do remember the high-flying years in the 80's and early 90's and would be surprised if the Sox weren't turning a profit when they were drawing well in excess of 2 million fans a season with salary levels much lower than we see today...

Dadawg_77
08-23-2002, 12:09 PM
Originally posted by KingXerxes
Okay - Let's forget cherry picking individual stocks, and say that Jerry and his group invested their $22 million in a fund which was directed indexed to the Dow Jones Industrial Average.

Invest $22 million in 1980 (aasuming 1/1/80).

Have $230 million today.

Still better than he's done with the White Sox, on a passive investment with no headaches.

Of course he wouldn't get the benefit of the lucrative contract amortizations.

What about tax implications? Since its a parternship, can't the owners right off any loss claimed on their tax returns. So that JR could pay less on taxes from a sucessfull real estate investment, since he takes a loss from the Sox. I would bet money on the fact that most baseball teams including the Sox can legally report a loss while making money. MLB has recieved favorable tax rulings which make it easier to report losses. What I would love to see is MLB Free Cash flow.

34 Inch Stick
08-24-2002, 02:23 PM
If I was already wealthy and could own the White Sox versus investing a percentage of my wealth in a fund and make the same profit, I'd take ownership in a heartbeat. Sure you get ripped in the media sometimes. The benefits outweigh the burdens though.

I'd eat so many Polish sausages with onions I would look like Jabba the Hut sitting up in my luxury box and yelling. It would be great. I'd have midgets, wolfboys from Mexico, the descendants of Lobsterboy, all up there with me. Jabba and his skybox of freaks.

voodoochile
08-24-2002, 06:08 PM
Originally posted by 34 Inch Stick
If I was already wealthy and could own the White Sox versus investing a percentage of my wealth in a fund and make the same profit, I'd take ownership in a heartbeat. Sure you get ripped in the media sometimes. The benefits outweigh the burdens though.

I'd eat so many Polish sausages with onions I would look like Jabba the Hut sitting up in my luxury box and yelling. It would be great. I'd have midgets, wolfboys from Mexico, the descendants of Lobsterboy, all up there with me. Jabba and his skybox of freaks.

Well, it would be an improvement from the present group of freaks that run the Sox. At least you'd be amusing and think of the press.