In: Advanced Math
In the world of professional sports (football, baseball, basketball), teams which have an operating profit often have a worse win-loss record compared to teams with lower operating profits or an operating loss (teams with the best players win, and the best players cost money). (a) Would you consider a professional sports team to be a profit maximizer? Please explain.
(b) If your answer to (a) is no, then what financial reason is there for anyone to own a professional sports team? Please explain.