Adelphia, Worldcom, Enron all went bankrupt after entering stadium naming rights deals. Intuit just announced a stadium naming rights deal with the LA Clippers for their new arena. It will be called the Intuit Dome. Based on the Stadium Indicator we should now sell Intuit?
In this episode, Glenn looks at the behavioral bias that feeds this heuristic trading rule and what are the actual returns to publicly traded companies that do stadium naming right deals.