Would you invest $3 Billion in a professional sports team?

I was asked, "Why would someone buy a sports team for $500 million to $3 billion dollars when there are ten million other "better" investments?"

My Answer: "Owning a sports team is like real estate, property can appreciate year over year. The selling of tickets, hosting concerts, events and other operations are similar to renting out your apartments for short spurts and a high roll revenue towards your ROI. Plus if the team is doing well, advertising/sponsorship dollars come into play. Look at Dallas Cowboys Stadium: they made in revenue in the first 6 weeks what they spent to build the entire stadium and that was without a title sponsor. (Now AT&T Stadium... ka-ching). The Cowboys collect between $17M-$19M a year and that's just to carry a name on the building. I won't even get into TV rights and revenue. 

Any investment is risky but doing it in something you enjoy won't feel like a loss. Like others have said, sometimes it's just passion. 

One other thing, just like in real estate, your worth/sale of the property (stadium/arena) is based on the recent market sales. So when the L.A. Clippers were bought for a high selling price of $2 Billion, the sale of the Charlotte Hornets (formerly the Bobcats) went up almost 21%  ($600M to $725M) without even winning another game. 

If you know how it works or better yet, how it works for you then invest in it. :)

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Best regards,

Shaheim