re: Spring 2024 Portal Thread

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Yep, they still treat their athletics like a bake sale or ticket raffle or cheerleader carwash to buy new jerseys for the team, in a small town high school model, even though they are all now 9-figure businesses.

Imagine Arthur Blank sending out emails to the season ticket holders asking for donations to build a new shitter in the locker room.

It's absurd.

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For some reason, there's always confusion about basic economic principles that affect our everyday lives. This is no exception because fan support for paying college athletes was widespread; it was just fair. But those same fans (i.e., consumers) of college athletics were destined to pay the cost of this revolution in amateur sports.

Econ 101. If the cost of production cost goes up and demand is inelastic (i.e., demand remains stable even at higher prices), that higher cost will be mostly passed to the consumers and production will remain stable. If demand is elastic, then consumption and production will drop until you reach a new balance of supply and demand at a higher price point.

We'll see how this plays out in college athletics but, in an entrenched environment of financial repression and monetary inflation, I'm expecting a decline in consumption (fans) and production (schools/teams/athletes/media) over time.