I’m out on a limb here. I have no experience on this subject, but the thought hit me as I biked past Daytona Internationall Speedway. Is it profitable to own an arena or a sportsvenue?
I started doing some investigation and what I found was this. To own and successfully run an arena you need a LOT of money. But it doesn’t mean you are very profitable. Most income comes from sponsors, tax, private investors and not from the actual events in the arena. Income however, is so slim that according to my investigation, the only profitable arenas aren’t in debt. If paying off debt is eating up all revenues we are talking seriously poor cash flow and a very bad return.
There are also very big costs of maintaining the place, making it a bit of a nightmare for us searching for passive income. It reminds me of lifestyle businesses. Airlines, clothing stores, cafes etc. People living their dreams will always face very hard competition and the majority of players never makes any money. BUT! There will always be those few that have the right feel for it and they, in contrast to their opposition makes LOADS of money.
