By Chris Smith
In recent years there have been few better investments than pro sports teams. Largely thanks to a booming stock market, rebounding economy and low interest rates, the values of American pro sports teams have been skyrocketing. Even just since last year the average NFL team is worth 19% more.
But many believe that the nation’s rapid economic growth will soon be slowing and that the market may be headed toward a significant correction. Wealthy investors have been holding record amounts of cash, some measures see GDP growth already slowing and parts of the economy are starting to look very similar to the years leading up to the last recession. Given that the cost of attending pro sports events has increased faster than other forms of entertainment – and much faster than inflation – the nation’s sports teams are likely at an even greater risk, since an economic slowdown could lead many Americans to curtail their discretionary spending on sports.
