Dumb Silicon Valley Ideas, Part XIII July 8, 2006Posted by David Card in Media.
Next time, you might want to invest in someone who knows something about professional sports. This is a colossally
stupid naive idea. Minor league baseball with no MLB ties in cities with no baseball tradition. Funded in Silicon Valley.
- Mr. Kaval and several classmates worked on a business plan for the league in a Stanford entrepreneurship class. It was there that they hit on the idea of centralized ownership.
“We saw that that was a superior business model and that we could grow to 20 to 30 teams with that model,” Mr. Kaval said. Their plan called for plowing profits from the more successful teams back into the league, to help with expansion, rather than allowing individual owners to pocket the profits. Even before they completed the class on entrepreneurship, Mr. Kaval and one of his fellow graduate students, Mr. Patel, decided that they would try to sell their idea in the real world.
Centralized ownership is nothing new. Ask the MLS. Hey, a Wharton prof kinda sorta likes he idea, so it must be good. And corporate sponsorships. Never thought of that before. Buying baseballs for $3 instead of $4 won’t cut it, guys. Maybe signing Jose Canseco as a pitcher will! But what do I know? Pat Sajak is an investor. (Though he’s not saying how much he spent.)