LA Angels Wednesday News Crash: Do you like Jazz?

This is interesting. It has to do with John Fisher and the A’s and building a new stadium. It gets into how there is a really good chance Fisher doesn’t have the money to finish a stadium. A big part of the issue is that his “billions” are tied up in two things, owning the A’s and owning a huge chunk of The Gap. But if he gets more investors he has to sell shares of the A’s, which will likely prevent him from making the 1.4B he’d spend on the stadium back.

If he sells stock, same issue. But in this case his family probably doesn’t let him liquify The Gap to build a stadium.

Plus, the article doesn’t mention it but I read stock reports on the GAP. It’s profit margin is actually semi-strong for a retailer…. over 5%. But they are, by nature, leveraged at over 150%. In short, retail stocks are NOT what you want to sell in a huge amount trying to make back a large sum of money. And that’s if a war, or tariffs, or a recession don’t kill that profit margin. Put simple, the team may take decades to make back the money, and the stock’s value will be damaged by a sell off and isn’t the type of high roller that will suddenly generate earnings that will recover a short fall. So you’d have a stadium losing you money and the rest of your fortune would be in a stock you damaged and diluted while you give up some control of both the Gap and the A’s.

Or, like I’ve said. These rich guys are not really all THAT rich a lot of the time.