Bad Economy hits the Redskins

[sportscurmudgeon]

memphisskin:

At the moment, the lower priced season tix are sold out and there is a waiting list. You are correct.

At the moment, the premium seats are NOT sold out and there is "erosion" in the numbers of renewals compared to the number of new purchasers.

If - - I said IF - - problems hit the lower price segment and those seats aren't sold out, the Redskins will face an interesting financial situation. It isn't likely to be a fatal flaw, but it will be one that requires some "poise" as the team navigates through.

Those conditions are not here yet; they may never arrive; or they may be here in about 12 months.

Regarding the valuation of the Redskins at $1.5B, that number comes from estimates done by Forbes and places like that. The Redskins are worth - - in the real world - - what someone will pay for them. Consider:

About 15 months ago, an investment banking firm - - forget which one - - valued the Chicago Cubs franchise including Wrigley Field to be worth $1.4B. The Tribune Company needs to sell the Cubs because its owner, Sam Zell, is sinking under the interest payments on the $12B loan he took out to buy the Tribune Company.

In the first round of bids, the highest bid was $1.3B and the low bid was $1.0B. The Tribune Company diddled around and now ALL of those bids have been rescinded by the potential buyers. One report was that the next round of bids will come in with significantly reduced prices We shall see....

Estimated values by bankers and by magazines are just that - - estimates. If someone tells you that he thinks your house is worth $50M, that does not make it so and it does not mean you have $50M to spend - - in the real world. You need a buyer with that kind of money ready to give you a check for that amount to make it - - real.

Until someone is willing to pony up $1.5B for a team, then no one knows what its value is - - in the real world. Maybe the Redskins are worth $20B...?