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Volume 25 No. 27
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J.P. Morgan Exec Details How Global Economic Trends Could Affect Sports Industry

J.P. Morgan’s Dave Frame offered up several global economic trends to watch, and talked about how they could affect the sports industry. Speaking at SBJ/SBD’s inaugural Dealmakers in Sports conference, J.P. Morgan’s Global Head of Client Advice & Strategy said, “This is the ninth year of a bull market. But I would ask the question: Does it feel like a bull market? Because to me, it doesn’t.” He noted that unemployment has been falling, but “one of the greatest concerns from companies right now is they can’t find people. It’s getting harder and harder.” Frame mentioned the ’08 recession, which not only affected the U.S. but other countries, as well. Frame: “We are starting to see a rebound, recovery and expansion of offshore markets.” He brought up geopolitical fears stemming from North Korea and how that could affect economies, but said there are “always risks geopolitically.” Frame’s presentation was light on sports, but he did make a few mentions of the industry. “All financial assets are valued by being the present value of future cash flows,” he said. “So whenever you buy anything -- except maybe a sports team -- you do it by valuing future cash flows on an interest rate. Therefore, rising interest rates are bad for the current price of any future cash flow.”