Re: read Marc Lancasters blog comments with Bob!
It definitely can make sense for a sports franchise to run a deficit, if that added investment creates value for the brand.
What's more, the increase in value of most sports franchises has outstripped inflation and interest rates over long periods of time. A smart owner should tap into that "passive income" to build his brand.
Think of it as a home equity loan (in the good days for housing) for an upgrade or addition. The appreciation in value is going to pay the loan all by itself.