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RE: LeoThread 2025-03-25 16:20

in LeoFinance9 months ago

Part 3/7:

Discussions regarding the teams’ financial status often lead to the argument of the Poads' approximately $425 million in debt. While this figure is notably high compared to other teams in Major League Baseball (MLB), equating it to ownership inefficiency misses the broader context. It’s crucial to differentiate between acquisition debt and operational debt, the latter being an essential aspect for a team operating at a loss. A simpler analogy: if a homeowner has a mortgage of around $115,000 on a $500,000 house, they would not typically perceive themselves as being overleveraged; similarly, the Poads’ debt level represents about 25% of the team's estimated value.

Ownership Dynamics in the Business of Baseball