Question

What internal strategic decision will increase the stock price of a publicly owned sports team? Team's...

What internal strategic decision will increase the stock price of a publicly owned sports team?

Team's star player gets traded

Borrow money for stadium expansion

Team signs a new, highly lucrative sponsorship deal

Team plays out dividends

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Answer #1

Team signs a new, highly lucrative sponsorship deal

The stock price of the sports team will be influenced by decisions that will have an impact on the team that may foster better performance as well. If the team signs an highly profitable sponsorship deal, it is inevitable that the stock price will go high.

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