Just think of Texan Tom Hicks.
This year, he had to sell his Texas Rangers in bankruptcy court. Then Liverpool FC was sold despite him screaming it was an “epic swindle”. He was co-owner of the Reds. Finally his Dallas Stars is for sale.
And last friday Hicks watched the Rangers win their first American League pennant. He had spent spent hundreds of millions of dollars building the team.
But don’t feel too much for him because he borrowed most of the money to buy the teams and to finance their buying of players. NYT article
And he has millions of dollars still.
“There was a sense that there was no amount of leverage that cannot be applied to a sure thing,” Bill Gross founder and co-CIO of Pimco the largest bond fund mgr told FT. “That was a lesson I learned in 1966 with blackjack, where although odds were many times in my favour, if you took too much leverage and had too much debt, then the house of cards will come tumbling down.”
Or as Omar Khayyam put it
Take thy good fortune, and thy bad withal;
Know for a surety each must play his game,
As from heaven’s dice-box fate’s dice chance to fall.