Company Blog
Monetize This
by Adam Zack — September 18, 2019
Ultimately, the cost of not investing is higher.
Some people get paid ridiculous amounts of money. Actors, Musicians and Sports stars who sign big contracts for hundreds of millions of dollars with mind boggling deals amaze me. Mike Trout signs a contract for $400 million. Manny Machado for $300 million. Bryce Harper $330 million. Their teams, the Angels and Padres are having terrible seasons, well below .500. The Phillies might make the wild-card playoff. Maybe. So it’s natural to think these owners shelling out the big bucks are insane. Who would pay that much for one player? But they’re not. These owners are very successful businessmen who, I believe, look to monetize their investment. But how? They haven’t turned into winners, at least not yet. These high-profile deals result in a lot of residual profits we don’t see. Merchandise sales, team publicity, legitimacy in the marketplace all figure in to the return on investment. Grocers who remodel stores, add new locations, reinvent their websites and hire top talent are making those investments to monetize them over the long run. It’s easy to say that investing in a cutting-edge website or replacing aging meat cases is just too expensive. Yes, it is expensive. But the cost of not investing ultimately is higher. Lost sales, continual repairs and the lowering of brand position because you didn’t plan and invest in some big contracts is why some teams will never be winners.
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