Billionaires Behind the Dodgers and Yankees Show How Big Returns Come from Big Risks – Lessons from the 2024 World Series

The competition wasn’t just on the field when the Dodgers and Yankees faced off in the 2024 World Series. It also showed the bold bets by billionaire owners who've seen massive returns through their investment in sports franchises. Mark Walter, CEO of Guggenheim Partners, spearheaded the purchase of the Dodgers in 2012 for a then-record $2.15 billion. Over a decade later, the Dodgers’ value has nearly tripled to $6.3 billion. Walter’s strategy focused on fan engagement and a strong farm system. He prioritizes excellence over frugality. His motto? “I’m not trying to save a dollar," he told the Los Angeles Times.

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On the Yankees' side, the Steinbrenner family has maintained control of the franchise since George Steinbrenner bought it for about $10 million in 1973. Decades later, the Yankees' value has soared to nearly $8 billion. It's now the most valuable team in Major League Baseball. This growth has been propelled by investments in high-value broadcasting partnerships, including a stake in the YES Network. The team also smartly diversified into other sports ventures like Major League Soccer's NYCFC and Italian club AC Milan.

These billionaires' forays into sports reflect a growing trend among the ultra-wealthy, where sports franchises serve as both status symbols and financial powerhouses. According to PitchBook, franchise valuations have outpaced the S&P 500, with contributions from lucrative broadcast rights, sports betting and the seemingly recession-resistant nature of live sports. Investors like Marc Lasry, who previously owned a stake in the Milwaukee Bucks, see sports teams as unique assets where mediocre performance doesn't impact customer loyalty – a rare quality in any business.

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Banking giants have noticed. Goldman Sachs, for example, launched a sports advisory unit last year to cater to the growing demand for team ownership from private equity firms and high-net-worth individuals. These "trophy assets" have evolved beyond cocktail conversation; they're now seen as the core of scalable businesses. Citi Private Bank's Ivo Voynov noted to Business Insider that sports franchises are no longer just "nice-to-have" but have become legitimate, strategic investments.

For everyday investors, this is a lesson in risk-taking and diversification. Franchises like the Dodgers and Yankees aren't just about wins and losses – they're about making calculated, high-stakes bets that transform "nice-to-have" assets into billion-dollar empires. Whether in stocks, startups or property, big returns often require big risks and a forward-thinking approach to asset management.

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