Competitive Edge - Sports & Entertainment Marketing News

Sustained Inflation Could Undermine Pro Franchise Valuations

U.S. inflation reached a 31-year high in October. The Labor Department reported the consumer price index rose 6.2% year-over-year, the fifth straight month the inflation rate had cleared the 5% benchmark.

Click here to read the story at yahoo.com.

Discussion Questions:

  1. What is inflation?
  2. What factors influence inflation?
  3. How does inflation impact sports teams?
  4. How does inflation impact sports fans?
  5. What factors might impact the value of a pro sports franchise?
  6. According to this story, inflation might impact the overall value of pro sports teams. How?
  7. Do you think inflation could result in a decrease in interest in the purchase of a pro sports franchise if and when a team becomes available for sale? Why or why not?
  8. Do you think inflation could result in fewer pro sports teams becoming available for sale? Why or why not?
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.

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