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There are a few things to consider before investing in a sports team

Dec 10, 2015, 02:25 IST

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FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.

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Investing in a sports franchise (Wealth Management)

Sports fans dream of owning their own team, but very few can do so. Not only does demand outpace supply, but sky-high valuations make sports teams unaffordable for almost everyone. John Goldman, a partner at Herrick, Feinstein LLP, told Wealth Management, ownership is "partly objective and partly subjective." While you can predict cash flow, you cannot predict how the team will perform. Most likely you will become part of an ownership group, and your investment's performance will be determined by the performance of a general partner. Additionally, Goldman believes it's important each owner knows their own responsibilities and that friction is avoided within the management group. As for what league to invest in, Goldman says teams in the NFL, MLB and NBA are too expensive for most investors and that the MLS and NHL are more affordable.

Dow Chemical and DuPont are discussing a merger (Reuters)

A combination of the two chemical giants would create a $120 billion behemoth. The combined company would then possibly split up into material sciences, specialty products, and agrochemicals businesses, according to people Reuters spoke with about the merger talks. A combination could produce as much as $3 billion in synergies, according to CNBC.

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Investors are pulling their money from Bill Gross (Bloomberg)

Investors pulled $74 million from Bill Gross' Janus Global Unconstrained Bond Fund in November. Bloomberg reports the withdrawals dropped the fund's assets under management to $1.32 billion from $1.39 billion and come at a time when the fund is down 1.4% for 2015. So far this year, Gross has outperformed just 54% of his peers.

It'll take a long time for Americans to pay down their credit card debt (NerdWallet)

NerdWallet's 2015 American Household Credit Card Debt Statistics Study found Americans hold an average of $15,355 in credit card debt. NerdWallet says someone making the minimum payment each month will take 44 years to pay down their debt. Each year, the average household pays $6,274 in interest alone, which amounts to 9% of the average household income ($72,641).

More than one in five Americans say they will be in debt until they die (CreditCards.com)

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A survey from CreditCards.com found 21% of Americans believe they will never pay off their debts. That number is up from 18% in 2014 and 9% in 2013. The average American thinks they will become debt-free at the age of 54. Interestingly, the survey also found the number of Americans living debt-free climbed to 21%, up from 14% last year.

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