Remarkable calculation for $765 million contract for baseball player.
The sum is a shocker even for American professional sports: Steve Cohen’s commitment of Juan Soto to his baseball club, the New York Mets, for fifteen years is worth $765 million. However, according to those in the know, the hedge fund billionaire may well have calculated wisely. The deal is considered the most valuable contract in the history of professional sports. Cohen acquired the legendary club four years ago for $2.5 billion and has since spent a lot of money on players. The Mets are currently in the red. But Juan Soto is not your typical player. At just 26 years old, he is considered a top batsman and captivates fans with his dynamic style. The contract is worth $51 million annually (potentially $55 million after five years). But according to those in the know, it should contribute significantly to an increase in revenue from tickets and spending by fans in the stadium, as well as advertising and revenue from cable and streaming broadcasts, which were almost $ 400 million for 2023. This corresponds to a decline in sales of ten percent. So Cohen just had to act. What’s also exciting is that the investor wants to build a casino next to the Mets’ Citi Field stadium in Queens for eight billion dollars. This could bring new spectators to the team – or existing fans could bet on their team or engage in other gambling activities next door (Link).