One of the things that sucks about getting older is having to worry about retirement. When you stop working, will you or won't you have enough money to live on? And of course, one wants to just get by in their golden years, so you'll want to be able to live well, right?
Invest properly and that will not be an issue, but the problem for many is figuring out what the right investments are, because there is nothing more frustrating than investing your hard earned money and finding out you lost 50 percent of it in the market.
So what should you invest in? What can you expect will provide a good rate of return? It may be easier said than done, but if the opportunity arises, get into professional sports.
In 1993, the most valuable sports franchise in the United States was the New York Yankees, at $225 million. Fast forward to 2015, and the Bronx Bombers are worth $3.2 billion. That is an increase of 1,422 percent!
To put that into further perspective, George Steinbrenner bought the team in 1973 for $8.7 million. With a valuation of $3.2 billion, the Steinbrenner family has seen a rate of return on their initial investment of 367.8 percent.
That is nothing compared to how much the Dallas Cowboys have increased in value. Back in 1993, when they won their second Super Bowl in a row over the Buffalo Bills, the Cowboys were valued at $175 million. Even though they only won one more Super Bowl over the next couple of decades and have come to define mediocrity in the league, the Cowboys are now the most valuable sports franchise in the world, at $4 billion.
That's an increase of 2,285.71 percent!
Overall, people who've invested in football teams have seen their investments grow the most from 1993 to today. Of the top 25 sports teams in 1993, the value of seven NFL teams grew by more than 1,000 percent (Dallas Cowboys-2,312.14 percent; NY Giants-1,866.67 percent; San Francisco 49ers-1,800 percent; Chicago Bears-1,633.33 percent; Philadelphia Eagles- 1,600 percent; Seattle Seahawks-1,246.67 percent; Miami Dolphins-1,233.33 percent).
Four baseball teams increased in value by more than 1,000 percent (NY Yankees-1,422.22 percent; Los Angeles Dodgers-1,200 percent; Boston Red Sox-1,200 percent; Chicago Cubs-1,125 percent).
In the NBA, only three teams increased by more than 1,000 percent (New York Knicks-1,785.71 percent; Chicago Bulls-1,428.57; Boston Celtics-1,259.26).
Of 1993's most valuable teams, the one that increased the least was the Toronto Blue Jays. When Rogers Communications bought the team in 2000, they paid $140 million. In 1993, it was valued at $200 million. Based on the 1993 number, the Blue Jays have increased in value by just 435 percent, but when compared to what they paid, it's an increase of 621 percent.
If you happen to be filthy, stinking rich, you could have purchased 1993's 25 most valuable teams for a little more than $4 billion. However, if you wanted to buy them in 2015, you would have to be more than filthy stinking rich, because you would need $47.01 billion.
Okay, so there is a tremendous amount of money to be made in professional sports, but only if you are already rich. What about the rest of the unwashed masses?
Well, if you happen to be approached by a buddy who says he has the next great sports competition but needs a little start-up money to get it off the ground, you might want to invest if you can. When George Halas bought the Chicago Bears from the A. E. Staley Food Starch Company in 1921, he paid a whopping $100 ($1,329.30 when adjusted for inflation). The Bears are now worth $2.45 billion.
Timothy Mara paid $500 for the New York Giants back in 1925 ($6,798.43 when adjusted for inflation). Now the team is worth $2.8 billion.
It may have seemed like a waste of $500 at the time, but when it becomes $2.8 billion a century later, your descendants will certainly appreciate the sacrifice you made on their behalf.
|TEAM||Value in 1993 (in millions)||Value in 2015 (in millions)||Percent Increase|
|New York Giants||150||2,800||1,866.67%|
|San Francisco 49ers||150||2,700||1,800.00%|
|New York Knicks||140||2,500||1,785.71%|
|New York Yankees||225||3,200||1,422.22%|
|Los Angeles Dodgers||200||2,400||1,200.00%|
|Boston Red Sox||190||2,100||1,105.26%|
|Los Angeles Rams||150||1,450||966.67%|
|Los Angeles Raiders||150||1,430||953.33%|
|St. Louis Cardinals||165||1,400||848.48%|
|New York Mets||200||1,350||675.00%|
|Chicago White Sox||160||975||609.38%|
|Toronto Blue Jays||200||870||435.00%|