Part 6/10:
He highlights that owners, especially billionaires with multiple assets and revenue streams, might be tempted to fund losses from other businesses or assets. However, sports leagues and their regulations aim to prevent this. For example, MLB has rules like the debt service rule—a regulation designed to limit how much debt teams can take on relative to their profitability. This rule was historically violated, as many teams operated with high debt levels despite consistently losing money, underscoring the systemic financial imbalance in the sport.