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How billionaires like Warren Buffett profit from minor-league baseball ownership

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NEW YORK (CHRIS SMITH @ FORBES.COM) -- Warren Buffett, America's second-richest man after Bill Gates, is worth $44 billion. The vast majority of that wealth is from Berkshire Hathaway, Buffett's holding company based in Omaha, Nebraska, but a small portion comes courtesy of a Minor League Baseball team in the same state. Buffett owns a 25 percent stake in the Omaha Storm Chasers, the Kansas City Royals' AAA farm team that is currently leading the Pacific Coast League's American Northern division with a 36-25 record. The Storm Chasers rank No. 20 on our list of Minor League Baseball's most valuable teams, taking home an estimated $8 million in revenue last season.

And Buffett isn't the league's only billionaire owner, either. Robert E. Rich, Jr., who made his $2.1 billion with food conglomerate Rich Products, owns the Buffalo Bisons (No. 13); Herb Simon, chairman and director of Simon Property – the nation's largest publicly traded real estate investment trust – is a co-owner of the Reno Aces (No. 14).

Why would some of the nation's wealthiest men be interested in owning such small professional sports teams? Simple: it's smart business.

CLICK HERE TO READ MORE: http://sports.yahoo.com/news/how-billionaires-like-warren-buffett-profit...

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Good for the owners and Great ROI for the City

http://www.wilmingtonnc.gov/city_manager/special_projects/baseball/draft...
Economic Impact
Over 20 years, $172 million in direct spending; $13.5 million in new revenues for the city and county
Through multiplier effects, the team and ballpark would generate an estimated $248 million in total new output, including direct, indirect and induced spending. Sources for new revenues include lease payments, sales and property taxes, hotel taxes and admission taxes.

Back of the napkin ROI = ~35% over 20 years. I'm in!!!

Let the billionaires build

Let the billionaires build the stadium.

Certainly smart business for the millionaires & billionaires

You get the taxpayers to build and maintain the facility and then charge them admission. It's just about the sweetest deal out there. What's funny is how many working class individuals there are out there that are fighting to make the wealthy wealthier.

Taxpayer funded stadium

Taxpayer funded stadium provided? CHECK
AA Minor league baseball team provided? CHECK
Good clean family fun provided? CHECK
On major thorough fair? CHECK
Free parking provided? CHECK

Slam dunk right?

Thats the story of the Port City Roosters AA farm club for Seattle. Played at Brooks Field on UNCW campus.
Moved to Mobile(?) due to lack of attendance/profits

It failed once before in the 1990s with a FREE stadium for them to use.
It failed with a AA team not a single A team

Just how stupid can we get trying repeat failed business?
BTW not one single A team is on the list.
You have single A
You have double AA
You have triple AAA (one step below major league)

Lets let Atlanta try 2 years at Brooks Field to test the theory. No taxpayer funds involved.
No risk for the Taxpayers - limited risk to the Atlanta Braves organization.
Why are there no alternative plans being put forth?
Expand Hardee Field? Use Brooks Field?
It seems to me that there are alternative lower cost plans that could be implemented but none were brought forth - why? Why is this all or nothing?

Best Regards
Vog

Why Tax Payers are Forced

The proponents for this claim that you have to spend millions of dollars on a shiny new state of the art stadium for this to work. The tax payers have to invest because they benefit the most. They claim this new stadium will create in the neighborhood of 3500 new baseball fans that will attend 70 games per year for 30 years. This with the 1500 fans Wilmington already has, equals the 5000 per night they claim will attend. I believe they arrive at these numbers with the assistance of chemicals not normally found in the human body. Otherwise it is hard to explain how educated (1981duke) people could could publicly state these illusions and hallucinations with a straight face. These stadium projects are a con game used by billionaires to get the local governments to force the tax payers to fund their projects for them. I guess it is easy to remain wealthy if everyone else is required to pay your bills for you. Please make sure all of your friends and family take the time to vote against this project!

Trying to stir the 1% WWAY?

Trying to stir the 1% WWAY? Follow the link to yahoo and read the whole story. The next paragraph puts everything into perspective...

"Part of the reason that the top-drawing minor league franchises are so successful is that they provide family entertainment at a reasonable price. The average MiLB ticket costs $7, which is almost four times less expensive than the $27 average cost of a MLB ticket. Plus, a family of four can attend a minor league game for $61, which includes food, drinks, parking and a program. Going out to dinner or seeing a movie could cost more than that, which makes minor league baseball games an appealing opportunity for families looking for something to do on a summer night."

Bring baseball to Wilmington!

I'm glad everyone will get

I'm glad everyone will get to vote on this. Then we will see who the 1% are.

Comparing baseball to dinner and a movie

In the above cost comparison did the taxpayers pay to build the movie theater and restaurant?

Visionary

COULD not phrased it better,play ball Wilmington!

If it works for WB

I think this guys knows something about finance and success.welcome BASEBALL and STADIUM to Wilmington in April 2014.
Warren Buffett knows,oh he knows.

Yes, the ultra rich have

Yes, the ultra rich have discovered how to profit by convincing local governments to force tax payers to subsidize their sports empires. The people get to vote on this one, I do not think it will happen here.

It's easier to connect the dots if your eyes aint closed

You never seem to get it, even when it's right in front of you.

Buffet knows all right, he knows it's profitable from an owner's standpoint. The Braves and Mandalay know that too .... as long as the city picks up the tab for the expenses. Duh!

That has exactly ZERO to do with it being a good thing for Wilmington taxpayers. Duh!

Can't quite figure out if you're a shill or just simple-minded. Either way, '81 must have been a bad year for Duke.

A good year..

not a Dukie

Not a Dukie?

Duh! Even way back in '81 Duke required students to pass English classes.

Here's a thought; why not change change your user name to something more apropos such as "1981doobie"?

Hard to take you seriously when your unfounded prognostications are so off the wall.

Where did you graduate from

Where did you graduate from Chuck, and why do you hide behind 1981duke on this blog? Is this to give the appearance of more people in favor of this scam?

Baseball Stadium

They are especially profitable when the tax payers pay for the stadiums. Greed knows no bounds.

Now All We Need

Are a few billionaires who will build a stadium. Problem solved!