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A '''fire sale''' is the sale of goods at extremely [[discounts and allowances|discount]]ed prices. The term originated in reference to the sale of goods at a heavy discount due to [[fire damage]]. A good example would be in Heatons in 1993. It may or may not be defined as a [[Closeout (sale)|closeout]], the final sale of goods to zero [[inventory]]. They are said to occur in the financial markets when bidders who value assets highly are prevented from bidding on them, depressing the average selling price below what it otherwise would be. This lowering of the price can cause even further issues because it may be inaccurately perceived as [[Signaling (economics)|signaling]] negative information.<ref>{{cite journal|url=http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.1.29|title=Fire Sales in Finance and Macroeconomics|first1=Andrei|last1=Shleifer|first2=Robert|last2=Vishny|date=|journal=Journal of Economic Perspectives|volume=25|issue=1|pages=29–48|accessdate=20 April 2018|doi=10.1257/jep.25.1.29}}</ref>
==Examples==
*Allowing the lowest bidders to purchase land and hotels.<ref>{{cite web |title=Phoenix has terrible business judgment, and that hurts your wallet |url=https://www.greenvilleonline.com/story/opinion/op-ed/robertrobb/2018/07/06/phoenix-terrible-business-judgment-sheraton-convention-center-incentives/761040002/ |website=Greenville Online |accessdate=31 July 2018}}</ref>▼
*Taking advantage of purchasing opportunities by acquiring more companies in the software world.<ref>{{cite web |url=https://www.designnews.com/automation-motion-control/buying-software-companies-nasdaq-fire-sale/92096488336025 |title=Buying up software companies in the NASDAQ fire sale|date=July 5, 2001|website=www.designnews.com |publisher=Design News |accessdate=31 July 2018}}</ref>▼
== History ==
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The term also has a counterpart in "railroad salvage", the discount sale of goods damaged in derailment or other accidents.
==
In [[professional sports]], a '''fire sale''' occurs when a [[Team sport|team]] trades many of its veteran players, especially expensive star players, to other teams for less expensive and usually younger players. Teams usually have a fire sale for [[Sports marketing|financial reasons]]. The term is generally thought of as different from merely "rebuilding" a team, because during a rebuilding process, teams often obtain players who are already in the [[Major League Baseball|major leagues]] or who are close to being major-league-ready, while retaining at least some of their key veterans (such as a [[franchise player]]) while also getting players from their minor league system; most rebuilding teams have few veterans remaining to jettison in the first place. On the other hand, trades in a fire sale often bring a team [[draft pick]]s and [[Prospect (sports)|prospect]]s who have little to no major-league experience in their sport, in exchange for proven, experienced veterans. The term comes from the perception that the team is trying to get rid of all its players.
The sports usage of the term "fire sale" is most especially used in [[Major League Baseball]], where the most infamous fire sale occurred in 1997. Weeks after winning the [[1997 World Series]], the [[Florida Marlins|Miami Marlins]] began trading away several of their high salary players and key cogs in the championship run, with [[Moisés Alou]] and [[Al Leiter]] among the first of many to go throughout the off-season and well into the 1998 season. This ended any realistic chance of the Marlins' defending their title. They plummeted to a 54-108 record in 1998, the worst ever by a defending World Series champion.
▲*Allowing the lowest bidders to purchase land and hotels.<ref>{{cite web |title=Phoenix has terrible business judgment, and that hurts your wallet |url=https://www.greenvilleonline.com/story/opinion/op-ed/robertrobb/2018/07/06/phoenix-terrible-business-judgment-sheraton-convention-center-incentives/761040002/ |website=Greenville Online |accessdate=31 July 2018}}</ref>
▲*Taking advantage of purchasing opportunities by acquiring more companies in the software world.<ref>{{cite web |url=https://www.designnews.com/automation-motion-control/buying-software-companies-nasdaq-fire-sale/92096488336025 |title=Buying up software companies in the NASDAQ fire sale|date=July 5, 2001|website=www.designnews.com |publisher=Design News |accessdate=31 July 2018}}</ref>
Another infamous fire sale occurred in 1994. The [[Montreal Expos]] ended the [[1994–95 Major League Baseball strike|strike-shortened]] [[1994 in baseball|1994 season]] with the best record in the majors. But by the start of the following season, many of the team's young stars had either been traded or lost to free agency. The Expos never really recovered on or off the field from this, and were forced to move to [[Washington, D.C.]] as the [[Washington Nationals|Nationals]] in 2005.
The Miami Marlins had another controversial fire sale in 2012-2013 offseason. In a massive trade with the [[Toronto Blue Jays]], they sent away such players as [[Josh Johnson (baseball)|Josh Johnson]], [[José Reyes (shortstop)|José Reyes]], and [[Mark Buehrle]].<ref>http://www.usatoday.com/story/sports/mlb/marlins/2012/11/14/many-burned-by-marlins-fire-sale/1705855/</ref>
== See also ==
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