How to Start Investing in Sports Groups and Teams
Investing in sports teams is a dream for many people. Few people manage to become a co-owner of a sports franchise, and there is a perception that this club is only for the elite. For example, owning a soccer club is really a prerogative for a small number of people with a lot of capital, but there is always the possibility of fractional ownership of professional sports teams. This can be done by investing in the companies that own these teams.
In professional sports, most team owners are not looking for profit, but to increase the value of the team. The COVID-19 pandemic has disrupted the economics of the sports business. Rows of sports teams were constantly losing money. ESPN provides data indicating that the entire NBA league lost 10% in revenue during the 2019-2020 season. Nevertheless, some franchises were able to make great money this year. For example, the Dallas Cowboys, who have only grown in revenue year after year.
We can still assume that things will return to normal in the world, so it won't be long before sports will attract viewers again. Perhaps even more than before the pandemic. So here are some ways to get into the business if you don't have a Bill Gates bank account.
Corporate ownership and affiliates
There are large companies that own shares in professional sports teams or even own those teams outright. If you buy stock in that company, you can fully consider yourself a co-owner of the sports team as well. This will also add extra excitement when watching your favorite team play. Popular franchises and their owners:
- Seattle Mariners: The owner of the Mariners is one of the biggest video game manufacturers, Nintendo of America.
- Chicago Cubs: The founder of TD Ameritrade created a family trust, which includes Chicago Cubs.
- Miami Heat: Miami Heat is owned by Mickey Arison, CEO of Carnival.
- New York Rangers And New York Knicks: The owner of these two teams is Madison Square Garden Sports Corp.
- Toronto Blue Jays: TBJ is a baseball partnership and one of the divisions of Rogers Comminications Corp.
- Philadelphia Flyers: Comcast-spectator, a Philadelphia company that owns the Flyers.
- Atlanta Braves - Liberty Media Corporation has a division of Capital Group, which owns The Braves.
Green Bay Packers
A team named after an Indian packaging company. This is the team that actually sells its stock directly to the public. In the early twentieth century, the franchise failed, and then local businessmen decided to create the nonprofit Green Bay Football Company. Shares were put on the market in 1923, 1935, 1950, 1997 and 2011. Currently, 361169 people own a total of 5009562 shares. The team's charter does not allow one person to own more than 200,000 shares.
Team fans can buy professional team stock to support their favorites, or for trivial bragging rights. There are some advantages to buying sports team stock, such as attending practices or special tours.
If you don't have a lot of money, then minor league teams are your answer. Most of them live off the investments of investors with small capital, financing deals with ownership groups focused on small sports teams.
Independent and small teams can grow really fast, with the arrival of a good owner, smart management and capital management. Such investments have a higher risk because small teams are also more likely to go bankrupt and collapse, but we have many success stories of such teams.
To summarize, we can say that investing in sports teams, whether they are large corporations owning part of a team or investing in teams from the lower leagues, can be quite an interesting and exciting way to make money and diversify your budget.
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