Part 7/10:
David points out that in the NFL, more teams operate profitably than not, with over half showing positive cash flow annually. By contrast, Major League Baseball has historically been less profitable. In the early 2000s, many teams lost money every year, and even now, a large number of MLB teams operate at a loss or break even. This is a concern because it challenges the narrative that teams are cash cows profiting owners hand over fist.
He further explains that league measures like valuations are often based on speculative or transactional sales and that these figures are “popcock,” or nonsensical, because they depend on what someone is willing to pay—a transaction driven by market dynamics rather than intrinsic profitability.