The Brian Sullivan Blog
  • December 4, 2008 05:39 PM EST by Brian Sullivan

    Too Bad You Can't Sell Short Overpaid Athletes

    The New York Post reports that New York Knick Stephon Marbury is going ahead with plans to buy a $40 million dollar private jet.    The highest paid benchwarmer in basketball has reportedly put a deposit on the aircraft and expects to take delivery.

    Some investor friends of mine follow what they call the "large house and private jet indicator."  They track CEOs and hedge fund managers who buy or build giant homes or drop millions on an incredibly expensive aircraft and use that as a starting point to bet short the underlying stock or asset.   The idea is that the 30,000 square foot home or Gulfstream G5 is the perfect sign that the executive is starting to believe his or her own hype too much and may have lost touch with reality.   It's a joke, partly, but there is something to it.

    Using their indicator, it's too bad you can't short athletes or other public figures.   We could short Stephon Marbury and likely make some coin.

    And no, there is no Marbury ticker.  That, too, is all in good fun.  Unlike Knicks games the past ten years.

Alan

Difficult to say.. who's more tone-deaf - Marbury, who does not attempt to sing, or Dolan, who does attempt singing..

December 4, 2008 at 7:32 pm

ConcernedCitizen

But we can short people.

December 5, 2008 at 9:14 am

Shawn

How true. This will be the next bubble to burst. It might not happen in the coming year but you can bet it will. You can't pay more and more every year to the free agents raise ticket prices every year and still have a fan base come to the games. I've been a sports fan for a long time and used to go Laker, Kings and Dodger games but the price of a ticket these days keep me home. I'm sure others have followed me in this path and more will when it comes to do I eat,pay the bills or go to a game. Why should I put money into their pockets when I can put it in mine instead. I still pay for direct tv and no I don't pay for the premium packages so I guess they get a little piece of me in the long run. It's to bad cause the almighty dollar is ruining sports.

December 5, 2008 at 9:48 am

ConcernedCitizen

It's not that. It's that going long on atheletes by the sports organizations will cripple them up and coming. LIKE Wall Street - and 'talent' ha ha ha OH my - the talent will leave when the money goes. Wow - those sound like REAL ball players. Either way - I hope the shady professional sports sector gets its due here like freakin' CHRYSLER.

December 5, 2008 at 10:22 am

Jim

Sports, whether professional or college, like car makers, like politicians give the public what they want. If you think something is wrong don't watch or go to the sporting event, don't vote for the candidate and don't buy the car. You have what you have because that is what you asked for or did not have the courage, knowledge or whatever to ask for different.

December 5, 2008 at 2:33 pm

texasblum

You don't need to wait for the plane or house purchase. I would short every player who signs a large contract. Some of the athletes still perform, but most fail to come close to the expectations. I would also short every player signed by any NY team. More often than not, they don't work out.

December 5, 2008 at 2:55 pm

Mark ONeill

It seems very likely to me the sports will lose attendance, revenues will drop and many team owners will be left holding the bag. They were stupid for paying so much in the first place. We should all boycott games and prepare for economic chaos.

December 5, 2008 at 3:06 pm

nancy

THIS IS A WORLD GONE MAD, I TELL YA! EVERYONE COMPLAINS ABOUT THE BIG 3, BUT NEVER IS THERE A WORD SAID ABOUT ATHLETES, HOLLYWOOD (CAN'T BRING MYSELF TO CALL THEM STARS) PEOPLE, MAKING MILLIONS OFF THE SWEAT OF OUR BROWS. NOT ONE DARN WORD. NOT TO MENTION NANCY PELOSI FLYING AROUND IN A JET FUNDED BY US TAX PAYERS! THESE S.O.B.'S NEED TO COME DOWN TO THE COMMON MANS LEVEL, SEE HOW IT FEELS TO NOT KNOW IF YOU WILL BE WORKING TOMORROW, EATTING TOMORROW, OR ABLE TO PAY YOUR BILLS TOMORROW. IF YOU ASK ME BRIAN...THEY ALL NEED TO BE SOLD SHORT, EXCEPT THE BIG 3, THEY ACTUALLY DO SOMETHING, GIVE PEOPLE JOBS, AND MAKE A PRODUCT...THE REST OF THEM.....I WOULDN'T WALK ACROSS THE STREET TO SEE.

December 5, 2008 at 4:17 pm

Wally

So the next thing may be a billion dollar bailout for Stefon?

December 8, 2008 at 7:49 am

about this blog

  • Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.

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