Money Doesn't Count for Much in Baseball
Speaking of returns on investment: How bad has it been for Red Sox owners John W. Henry and New York Times Co. (NYT) honcho Arthur Sulzberger, Jr., since their team won the World Series just three years ago?
Consider this. Henry's investment company John W. Henry & Co., whose fortunes peaked shortly after the last Series win, has all but collapsed. The story has already been well told -- here and elsewhere. But from the end of October 2004, Henry's main investment fund has lost 29% of its value while Wall Street's Standard & Poor's 500 index has gained 42%. No wonder clients have pulled out nearly all their money, cutting his funds under management from around $3 billion to just $431 million.
As for Sulzberger? Since the night of Oct. 27, 2004, he has seen about $2.9 billion, or 50%, wiped off the value of his family's company as the shares have plunged.
He has been dragged into an unseemly and humiliating row with investment bank Morgan Stanley (MS) over his family's special "voting" shares. And he has been forced to write down most of the value of the Boston Globe.The Curse of the Bambino has turned out like the Curse of Tutankhamen's Tomb. You couldn't blame the pair if they were secretly praying a Rockies victory this week might undo the effects of 2004, and send the curse back to the team itself.
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