It seems that one of the most trending topics right now on social media is this: Ohtani.
But what is it?
Is it a town or city? Or the latest craze in puzzle books since Sudoku?
In fact, it’s the surname of Shohei Ohtani, who recently did this.
Source: BBC
I won’t go into the minutiae of this deal but consider the timing…
It indicates to me at least that things must be starting to look more positive. Often in American sports, deals like this are predicated on future revenue.
Perhaps we’ll see an improved TV deal for MLB down the line here? I’m sure Japanese TV companies will be falling over themselves to broadcast every game.
After all, the player with the “most expensive deal ever” tag is required viewing.
However, I won’t be one of them. I’m not a baseball fan, I’m afraid.
What I am interested in right now is what U.S. sports in general is telling me.
And another key story to follow here is about basketball.
Source: mayor.dc
Notwithstanding the fact that almost all taxpayer-funded stadiums never even come close to providing value back to said taxpayers, politicians love nothing more than the prestige and media coverage huge sums spent on public arenas can generate.
It just so happens that a well-known NBA basketball team currently calls the Capital One arena home, and that’s the Washington Wizards.
And it just so happens that their majority owner, Ted Leonsis, announced his intention to move the franchise to neighboring Virgina. Again, a very U.S. sports specific scenario.
Whilst nothing has been approved at this point, it’s curious considering Leonsis asked for $600 million from Washington, D.C. to upgrade the stadium that his team plays in.
And, having not received those funds, turned up on Virginia Governor Glenn Youngkin’s doorstep to announce plans to build a new stadium there instead.
D.C. Mayor Muriel Bowser’s plan will cost approximately $500 million. Someone here has the leverage, and it’s neither of the politicians.
It’s a trend that’s getting bigger, too.
Here’s another such story:
Source: AP news
At least this time, it went to a vote, and the voters approved this, so you all know who to blame!
Here’s something else they did… ensured those same taxpayers will foot the bill should costs balloon higher than this.
At the end of the day, it doesn’t matter whether it’s credit created out of thin air, or taxpayer funds used to secure the loans necessary to make these things happen.
All you need to know is that it all confirms the 18.6-year real estate cycle is moving on time and on track.
What are all these funds ultimately paying for? Stadiums. And what does every stadium ever built need?
Land.
Land will capture all the gains these new stadiums create. And the land cycle continues to turn.
So enjoy watching your favorite team during these holiday months. But do keep a close eye on the next mega contract or new or refurbished sports stadium, too.
It’s all part of a more than 200-year-old cycle that’s due to run its course over the next few years.
And only my readers will have front row seats to what occurs when the boom turns quickly into bust.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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