I'm gonna go ahead and disagree with most of this. Firstly, the exact strategies he's lambasting were the ones that also produced championships… not only in Boston, but also in Liverpool.
There's no doubt that fans are getting fleeced like never before… but private equity is a scapegoat here. Sports has been about money for a very long time. Owners have always wanted to make a profit (Exhibit A: Jerry Jones). The difference is that now there's opportunity to make a whole lot more and a whole lot faster. There's probably no better example of the changing landscape than the ROI that Wrexham's owners have gotten… and that points to the real problem: Media.
The biggest factor over the past 30+ years is the explosion in media coverage and availability. It started with the rise of 24/7 content on ESPN and has exponentially grown with streaming and social media. Ironically, this very tweet and video - and the fact that we want to discuss it here is a better example of the real problem than private equity is.
The explosion of media coverage (and especially social media) drove the ability of owners to get higher, quicker returns, because it vastly amplifies fan interest. 60-80 years ago, you'd read about your team a few times a week in the newspaper while you drank coffee, listen to them on the radio, and in rare moments, get to see them on TV.
Now, we spend a crazy amount of our day immersed in content about our teams. It feels so much more important. And if you're also the type of person who likes having a social media presence yourself this feeling gets magnified. Consider all the people with their phones out recording/streaming games and taking selfies. They're much more willing to pay any price to be there and get that perfect tweetable moment.
It's not just sports, it's music and other entertainment as well, to include the theater of modern politics.
And relatedly - other things that we used to hold more important than our entertainment interests have become far less important… folks are losing their faith, quietly quitting from work (guilty here on this Friday), sitting around on devices instead of spending time with their families, etc.
The problem isn't ownership and their desire for money.
The problem is us. We've let devices and social media hijack our brains and priorities.
Thanks for coming to my super ironic TED talk.
