Friday, June 24, 2011

Smell like team spirit

When it comes to taking most of the profits, the top investment banks do not compare with football clubs. The money flows to the talent.

Sports franchises: smell like team spirit -
"Ditto Stateside. The headline grabbing $400m Platinum Equity supposedly paid for the Detroit Pistons this month is equivalent in size to Stein Mart, 468th in the S&P 600 small cap index. (And the retailer makes 10 times the revenues.) Sports profitability is worse. Why? Wages. Incredibly, the market cap of Juventus FC is only 30 times the annual salary of its best paid player. Goldman Sachs’s market cap is 5,000 times its boss’s last pay packet."

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