"Major League Baseball within the last week loaned millions to Tom Hicks, the evidently cash-strapped owner of the Texas Rangers, and will continue to offer financial assistance to Hicks until he is able to sell the team
.....The Rangers’ opening day payroll this season was around $68.1 million, which ranked 22nd among MLB’s 30 teams and was less than $1 million more than its 2008 level."
Two angles you could take on this in a class that would surely spark some conversations:
1. The league has a vested interest that a team does not go under. This is one reason they have requirements to buy a team and for salary caps. Are there any similarities with the banking sector? (Brings back old lessons on Reg Q).
2. Financing (and the lack thereof) can negatively impact operations.
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