Continue reading Debt may force Marc Ecko to surrender control of his brand

Debt may force Marc Ecko to surrender control of his brand originally appeared on BloggingStocks on Tue, 22 Sep 2009 16:15:00 EST. Please see our terms for use of feeds.

The last ball knocked out of the park by all-time home run king Barry Bonds has sold at auction for $376,612.

That's either a bargain or a rip-off, depending on what happens next. Barry Bonds is an unsigned free agent as of now, but he and his agent have insisted that the slugger intends to continue his Hall of Fame career that has been tarnished by allegations of performance enhancing drug use.

The president of the auction house told the Associated Press that "If Barry Bonds never plays again, whoever bought this ball has a valuable piece that's worth seven figures." Of course, if Bonds does make a comeback, the ball is worth a fraction of what it sold for.

The sale of the Barry Bonds ball is actually a pretty good metaphor for the stock market. Given the tremendous uncertainty surrounding Barry Bonds' career, the sale price represents the market's best estimate of what will happen. That is, in a nutshell, the premise behind discounted cash flow.

Given the large discrepancy between the ball's sale price and its probable value if it is indeed his last home run, it seems that many baseball enthusiasts are betting we haven't seen the last of one of the most hated men in the history of the game.

Alternatively, it could be that the increasing scandal surrounding Bonds' accomplishments have driven down the ball's value -- kind of like how investors will pay a lower P/E ratio for a company's stock if they believe it's inflating its numbers.

Barry Bonds' last home run ball sells for $376,612 -- a good value? originally appeared on BloggingStocks on Sun, 13 Apr 2008 18:10:00 EST. Please see our terms for use of feeds.

Yesterday, I praised Adam Piatt for his admission of steroid use and efforts to assist former Senator George Mitchell in his efforts to investigate performance enhancing drug use in professional baseball. I wrote that "Hopefully the media will treat him well in light of his revelations as a sign to people in all industries that, no matter how badly you screw up, there is redemption to be found if you do what you can to fix it."

Now, free agent catcher Gary Bennett, who played for the St. Louis Cardinals in 2007, admitted in a phone interview with the Washington Post that he used human growth hormone: "As far as the report is concerned to me, it's accurate... Obviously, it was a stupid decision. It was a mistake. It was something that quite obviously, you regret now. And beyond that, I just don't know."

I would congratulate Bennett for his honesty -- more than a few players are insisting on their complete innocence in spite of strong evidence to the contrary. How are the fans reacting? This is just a small sample, but most of the comments left on the Washington Post blog post were very positive:

America is ready to forgive steroid users -- if they'll admit it originally appeared on BloggingStocks on Sat, 15 Dec 2007 14:40:00 EST. Please see our terms for use of feeds.

In 2001, Alex Rodriguez, perhaps the finest slugger to ever play the game, inked an unprecendented 10-year, $252 million contract to jump from the Seattle Mariners to the Texas Rangers. Three years later, when the Texas management regained its sanity and realized the ruinous terms of the deal, they dealt A-Rod to the only team with the money to support such a contract, the New York Yankees.

With A-Rod and another future Hall-of-Famer at shortstop, Derek Jeter, the Yankees had the foundation to return to its status as perennial World Series champion. Unfortunately for the club, it hasn't turned out that way. For A-Rod, however, things continue to improve.

His 2007 season was a monster; 54 home runs, 156 RBIs, slugging percentage of .645, American League MVP. Unfortunately, he continued what has become a maddening tendency to disappear in the playoffs, hitting like a bantamweight in the team's loss to the Cleveland Indians.

Such a wipeout might diminish most people's bargaining value, but A-Rod took an early-out option in his contract and went back out on the free agent market. After much bluster and posturing, the Yankees awarded him a new 10-year, $275 million contract. At 32, he should be set for the rest of his career, one in which he will almost certainly eclipse the home run record of Barry "better hitting through chemistry" Bonds.

When it comes to baseball contracts, in 2007 A-Rod hit one out of the park.

Be sure to check out more Money Winners of 2007.

Money Winners of 2007: Alex Rodriguez hits it out of the park originally appeared on BloggingStocks on Sat, 15 Dec 2007 14:10:00 EST. Please see our terms for use of feeds.

Continue reading Baseball needs to discipline players named in the Mitchell Report (update)

Baseball needs to discipline players named in the Mitchell Report (update) originally appeared on BloggingStocks on Thu, 13 Dec 2007 22:20:00 EST. Please see our terms for use of feeds.

HBO to turn Barry Bonds scandal into a movie originally appeared on BloggingStocks on Fri, 30 Nov 2007 18:38:00 EST. Please see our terms for use of feeds.

Seeking advice on his contract negotiation with the New York Yankees, Alex Rodriguez went to the number one source for business wisdom, Warren Buffett, and a pair of Goldman Sachs executives.

After opting out of his contract at the urging of super-agent Scott Boras, Rodriguez found limited interest in his services at the price he was seeking. Now, he's back negotiating with the Yankees, after alienating the team badly by refusing to meet with them.

Buffett's advice to Rodriguez was this: If you want to stay in New York, go talk to the Yankees yourself and leave Boras out of it -- there's too much bad blood between him and the Yankees.

There are lot of athletes who could use Buffett's wisdom: Mike Lowell has professed his desire to stay in Boston, but may leave the team if he can secure a four-year deal from another team -- Boston is only offering him three. Buffett would probably tell him that it's silly to leave a great situation for more money when you're already rich. Mr. Lowell: Please stay in Boston. You had the best year of your career and the fans love you.

Buffett would probably tell Barry Bonds ... Well, Buffett would actually probably beat the crap out of Barry Bonds, because Warren Buffett is a person of integrity -- he doesn't like people who cheat and lie.

Full Disclosure: Zac Bissonnette is long the Boston Red Sox and has a large naked short position in the New York Yankees.

Alex Rodriguez seeks Warren Buffett's advice -- Who else needs wisdom from the Oracle of Omaha? originally appeared on BloggingStocks on Sun, 18 Nov 2007 10:10:00 EST. Please see our terms for use of feeds.

Continue reading Barry Bonds facing 30 years in jail and a rough financial future

Barry Bonds facing 30 years in jail and a rough financial future originally appeared on BloggingStocks on Thu, 15 Nov 2007 20:37:00 EST. Please see our terms for use of feeds.

Barry Bonds was indicted Thursday for perjury and obstruction of justice. It may very well be that the all-time home run record holder will be spending a lot more time in court rooms and with attorneys than playing baseball next season.

• "A federal grand jury slaps the San Francisco Giants' slugger with perjury and obstruction of justice charges. The charges come after a four-year investigation into whether the home run king lied under oath to authorities investigating the abuse of performance enhancing drugs in professional sports."

Late in the season the Giants let it be known that they were not interested in having him in the line-up next year. As a free agent Bonds certainly would have plenty of value to an American League team looking for a Designated Hitter (DH) and he would like to put the record far out of reach, I'm sure. This saga looks likely to continue for years. However, this indictment alone may cost him the opportunity to build on his record and may very well put the proverbial asterisk next to it.

I'm sure there will be those that will say his record is not legitimate; that has already been the case. I say the record is the record. The rest of the story is, and will continue to be well documented.

Continue reading Barry Bonds indicted for perjury and obstruction of justice

Barry Bonds indicted for perjury and obstruction of justice originally appeared on BloggingStocks on Thu, 15 Nov 2007 20:15:00 EST. Please see our terms for use of feeds.

Taking a $752,467 stand: Bonds' ball to be branded originally appeared on BloggingStocks on Wed, 26 Sep 2007 16:20:00 EST. Please see our terms for use of feeds.

Continue reading Barry Bonds' home-run ball: Bestow it, brand it, or destroy it?

Barry Bonds' home-run ball: Bestow it, brand it, or destroy it? originally appeared on BloggingStocks on Wed, 19 Sep 2007 08:00:00 EST. Please see our terms for use of feeds.

That didn't take long. Matt Murphy initially suggested that he would consider keeping the Barry Bonds home run ball, but now he's come to his senses. He's putting it up for auction.

Sotheby's (NYSE: BID) will handle the sale and expects the ball to sell for at least $500,000. But as I said in a prior post, the ball seems likely to decline in value. There are several current stars who seem to have a good shot at breaking the record, most notably Alex Rodriguez. And who wants a ball that's number 2 on a record that was broken just a few years later? I don't think too many people care about the Mark McGwire ball anymore, and I'd be willing to bet it would sell for a lot less than the $3 million it initially brought.

Ya know what I'd like to see? I'd like Mark Cuban or Warren Buffett to buy the ball... and burn it at a gala to raise money for drug prevention and awareness programs for youth.

Maybe then some good could come out of Bonds' cheating.

The Enron of sports memorabilia goes on the block originally appeared on BloggingStocks on Wed, 22 Aug 2007 16:00:00 EST. Please see our terms for use of feeds.

When Barry Bonds broke Hank Aaron's all-time record for home runs, it ignited a debate: How much was the historic baseball worth, and how much would it sell for? BloggingStocks writer Tom Barlow asked the question, "What is it really worth?"

To Barlow, it's worth nothing. Bonds is a cheater. But I have another take on it, and one that ties into the way I look at stocks. When investing, I want to buy a company with some kind of moat: If the moat surrounding the value of the Bonds ball is however many homers Bonds will finish his career with, how wide is that moat? Not too wide. Here are some people who have a shot at breaking the record:

• Alex Rodriguez
• Albert Pujols
• Ken Griffey, Jr. (This is a long shot but would be the feel-good story of all-time)

I am willing to make a bet: Whoever pays $400K+ for the Bonds ball will, in 10 years at the most, own a home run ball hit by a steroid-tainted baseball player who, in addition to being among the most hated people in all of sports, is also number two on the all-time list for home runs.

Whether you're buying a baseball or a stock, you want to look for a durable moat. I don't think the Bonds ball has that, and I'd be shorting it here.

Barry Bonds: A temporary leader isn't worth paying big for originally appeared on BloggingStocks on Sun, 12 Aug 2007 09:10:00 EST. Please see our terms for use of feeds.

• Ken Lay's Bible
• Floyd Landis' pee cup
• Rosie Ruiz's running shoes
• Uri Geller's spoon
• Frank Abagnale's pilot wings
• Milli Vanilli's musical charts
• Jayson Blair's chair from the NYT

Barry Bonds' baseball: What's it really worth? originally appeared on BloggingStocks on Wed, 08 Aug 2007 16:19:00 EST. Please see our terms for use of feeds.

Continue reading Paris' playmate, Barry Bonds' ex posing for Playboy

Paris' playmate, Barry Bonds' ex posing for Playboy originally appeared on BloggingStocks on Thu, 26 Jul 2007 21:02:00 EST. Please see our terms for use of feeds.

Baseball is all about numbers, just like the stock market. Wall Street got all excited when the Dow Jones Industrial Average broke 14,000. Any day now Barry Bonds will be breaking the career home-run record set by Hank Aaron of 755. He only needs three more to reach 756.

Barry Bonds' last few years have been surrounded by controversy, from mistresses to steroids to anti-social behavior, as he has chased his destiny in pursuit of the home-run record. I will not dwell on any of these issues here as they have all been discussed in far greater detail than need be in every form of media.

I just got back from lunch at O'Brien's Pub where the subject came up (how could it not) and I was thinking about how I would end the story in grandeur if I was writing it. More importantly Hank and I (the bartender, not Aaron) were discussing what Bonds could do to create the perfect ending to this story and his career. Then it came to me -- Bonds should hit No. 755, shake hands with the umpire, his teammates and manager, wave to the fans, and simply walk off the field -- The Ultimate Walk-off Home Run.

Continue reading Barry Bonds' Ultimate Walk-off & Diageo

Barry Bonds' Ultimate Walk-off & Diageo originally appeared on BloggingStocks on Wed, 25 Jul 2007 19:50:00 EST. Please see our terms for use of feeds.

Continue reading World watches while Bonds chases record

World watches while Bonds chases record originally appeared on BloggingStocks on Thu, 31 May 2007 16:20:00 EST. Please see our terms for use of feeds.

How much money would Barry Bonds be worth if he liked the media and the media liked him? That is the proverbial $64,000 question with the brawny outfielder just 10 home runs shy of Hank Aaron's career home run record of 755.

The 42-year-old Bonds has a one-year $16 million contract with the San Francisco Giants and if he has saved and invested well during his lucrative playing years, he should have no financial worries heading into his life after baseball. His career earnings dating back to his rookie season with Pittsburgh in 1986 are at least $172 million. But with potential legal bills mounting, Bonds is probably saving every penny he can. He still may be indicted by federal prosecutors on charges of perjury and he could be fined hefty amounts by the U.S. government in tax penalties.

With all this going on for the soon-to-be home run king, he's practically invisible on the endorsement front. Companies don't want to go anywhere near Bonds because of still unproven suspicions of steroid use. That and his general unfriendliness towards the media, and he really is alone on an island most days at the ballpark. But that didn't seem to bother him much this week as the Giants visited Shea Stadium and the New York Mets.

Bonds didn't even speak to the media before the first game of the series on Tuesday. The most intriguing aspect of the Bonds home run-record chase is how Aaron himself says he won't attend when the record is broken. And Commissioner Bud Selig has not confirmed whether he will attend either. Some way for baseball to treat its most hallowed record. The same Major League Baseball which clearly turned its collective heads the other way when Mark McGwire and Sammy Sosa (both bulked up beyond rational belief) were chasing Roger Maris' single season record of 61 in 1998. McGwire went on to hit 70 dingers that summer, a record Bonds surpassed with 73 in 2001.

Will Bonds ever reap the financial rewards of the record he's about to shatter? The answer, quite clearly, is no.

Bonds won't get rich as baseball's home run king originally appeared on BloggingStocks on Wed, 30 May 2007 18:00:00 EST. Please see our terms for use of feeds.