This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.
Celebrities -- they're more than superior human beings, they're money-making machines. If these celebrities were stocks, which would be the shrewd buy?
The shrewd, cantankerous veteran vs. the trash-talking but talented kid -- who would you put your money on?
The veteran would be George Steinbrenner, head of the New York Yankees since 1973. Steinbrenner made his nut in the family shipbuilding business when he bought out the American Ship Building Co. He was always an avid sports fan, even serving as a football coach at Northwestern and Purdue before returning to the business world. His first acquisition, however, the Cleveland Pipers of the American Basketball Association, left him broke. But his taste for the big leagues remained.
In a move that will haunt Indians fans forever, Steinbrenner's attempt to buy the Cleveland team was spurned, so he and a group of investors instead spent $10 million to buy the then-struggling Yankees. To use a line coined by Yankee legend Reggie Jackson about himself, Steinbrenner was truly the straw that stirred the drink. Through the next decade he fought with Commissioner Bowie Kuhn, with his managers (most notably Billy Martin), and players including Jackson, and perhaps coincidentally, the team began to win. While over the next 30 years the Yankees have waxed and waned, his understanding that the Yankees was a cash cow par excellence, and his willingness to spend on talent accordingly, have kept the team in contention virtually every year.
While he's mellowed with age, the talent on the field remains first-rate. Forbes estimates the current value of the Yankees at $1.026 billion; not a bad return on investment, but perhaps with most of its value potential already realized. Call Steinbrenner a NYSE blue-chip stock.
Mark Cuban shares Steinbrenner's passion and willingness to interject himself into his team's management. In other respects, though, he's as different as NYSE is to NASDAQ. Cuban's $2.3 billion fortune was built in e-commerce, mostly through the sale of Broadcast.com to Yahoo! (NASDAQ: YHOO) in 1999. He's kept a hand in many other e-ventures, most controversially in the founding of ShareSleuth.com, dedicated to uncovering misdeeds in publicly traded companies.
In 2000, Cuban bought controlling interest in the foundering NBA Dallas Mavericks. In the 20 years before his ownership, the franchise had won only 40% of its games. In the years since, they've elevated their game to 69.1% in the win column. During this stretch, Cuban has been in hot water repeatedly for heckling referees, bantering with fans, and imposing his will on his front office. Seemingly not content with his NBA success, he's also been spotted nosing around available pro hockey and baseball franchises.
Forbes estimates the Mavs current worth at $463 million; Cuban paid $285 million for majority ownership seven years ago. Again, not a bad return on investment, especially given the sport's expansion potential. Think of Cuban as a NASDAQ Internet 2.0 stock.
The two form a sharp contrast; industrial money invested in a sport with a rapidly aging fan base vs. new economy money and a sport that has been embraced worldwide. Despite the adage "Winning forgives all," I'm not a fan of loud-mouthed owners regardless of their era, so I'm ambivalent about this one.
If they were stocks, which would you buy?
Vote in our poll for George Steinbrenner or Mark Cuban, and let us know in the comments why your choice has the financial edge in this match-up. Also be sure to check out our other Money Face-Offs.











Reader Comments (Page 1 of 1)
9-16-2007 @ 7:43PM
Aaron said...
Cuban. While both men are crazy Mark Cuban wins out.
--Aaron
http://www.aarondavidson.com