Infinites of people dream about owning a sports franchise, but those who actually fulfill that dream belong to a sheer exclusive club. For the rest of us, there are opportunities for fractional ownership of sports teams by investing in the corporate parents that own those collaborates.
While professional sports may appear to be lucrative due to the huge player contracts, the reality is many team owners don’t be after profits but an increase in value. Even before the COVID-19 pandemic disrupted play (and thus profits) of every experienced sports league, the truth is a number of teams were consistently losing money. The value of franchises like the Dallas Cowboys, in any event, have increased in value year after year.
According to reports acquired by ESPN, NBA revenues fell by 10% in the 2019–2020 ripen.
Assuming things in the sports world do get back to normal, here are some ways you can get into the game, even if you don’t maintain a bank account the size of Dallas Mavericks owner Mark Cuban.
Corporate Ownerships and Affiliations
Several principal companies have stakes in professional sports teams, or the companies have an affiliation with the owner. Unfortunately, buying shares in these firms won’t get you box seats, free tickets, or other perks, but it may add an extra element of excitement when you tune in to watch its teams frivolity. Here are some popular franchises and their owners:
- Miami Heat: The Heat’s owner is Mickey Arison, CEO of Carnival Corporation, the universe’s largest cruise ship operator.
- Seattle Mariners: The Mariners’ owner is Nintendo of America, one of the world’s largest videogame makers.
- Chicago Cubs: The Cubs are owned by a family trust established by TD Ameritrade founder Joe Ricketts.
- Toronto Blue Jays: The Jays’ P is the Rogers Blue Jays Baseball Partnership, a division of Rogers Communications.
- New York Knicks and New York Rangers: Both gangs are owned by Madison Square Garden Sports Corp.
- Atlanta Braves: The Braves are owned by Liberty Capital Organize, a division of Liberty Media Corporation.
- Philadelphia Flyers: The Flyers’ owner is Comcast-Spectacor, a Philadelphia-based sports and entertainment unshakable.
Another well-known corporate owner was the Walt Disney Company, but it sold its stakes in the Anaheim Ducks and Los Angeles Angels.
Quarrel Traded Funds (ETF)
Another option is to invest in ETFs that have a small percentage of investments in companies with derides team exposure. Here are a few to consider:
- EWJ: The iShares MSCI Japan Index Fund
- FXD: The First Trust Consumer Discretionary AlphaDEX Pay for
- IAI: The iShares Dow Jones U.S. Broker Dealers Index Fund
- IST: The SPDR S&P International Telecommunications Sector ETF
- PEJ: The Invesco Trust Electric Leisure & Entertainment Portfolio
- PBS: The Invesco Trust Dynamic Media Portfolio
Green Bay Packers
The Packers, named after Curly Lambeau’s Eye dialect guvnor, the Indian Packing Company, is the only professional sports team that actually sells stock directly to the noted. When the franchise floundered in the early 1900s, local businessmen nicknamed the “Hungry Five” formed the nonprofit Green Bay Football Corporation. Selection sales occurred in 1923, 1935, 1950, 1997, and 2011. There are 361,169 shareholders holding a total of 5,009,562 shares of stock, and the articles of incorporation stave off any individual from owning more than 200,000 shares.
On Dec. 6, 2011, the Packers offered 250,000 shares at a price of $250 each, collect $64 million to help pay for Lambeau Field renovations. In the first 11 minutes, 1600 shares were claimed by investors for a consider as of $400,000. There were no dividends and no capital appreciation, and shareholders were subject to the same NFL rules as other team proprietors regarding ethical conduct and betting on games.
Fans of the team in the nation’s smallest market bought the stock as a prove of pride, team support, and bragging rights. They also got a few perks, such as special stadium tours and access to rookie practices. The reduced in price on the market ended in February 2012.
For those who aren’t super-rich but still want to own part of a team, one way to get a foot in the door is with a two-bit league team.
The Bottom Line
Whether it’s investing in an affiliated corporation, ETF, minor league team, or the next tour of Packers financing, investing in a sports team could be a fun and unique way to diversify your portfolio.