Investing in a professional sports team can be an exciting way to engage with your favorite team’s success. Not only can you experience the thrill of victory, but your investment also has the potential to appreciate in value – a true win-win situation! With several popular sports franchises available for public trading, anyone with a modest amount of capital and a brokerage account can become a partial owner of a professional team.
Here’s a guide on how to purchase a stake in a sports team and a selection of some of the top teams to consider:
How to Acquire Ownership in a Sports Team
If you’re interested in investing in a professional sports team, there are two primary avenues to explore. For those without billions of dollars to spare, publicly traded sports franchises can be purchased using a brokerage account. Additionally, individuals with higher net worth may have the opportunity to participate in private equity investments to acquire a stake in a team.
Buying a Sports Team through a Brokerage Account
- Select a Broker: Begin your investment journey by choosing a reputable online stock trading broker. Look for brokers that offer commission-free trades and robust customer support, such as Fidelity Investments or Charles Schwab.
- Open an Account: Provide basic personal and financial information to set up your brokerage account. The process typically takes less than 15 minutes.
- Fund Your Account: Deposit funds into your account to start trading. Connect your brokerage account to your bank for quick electronic transfers, which may take a few business days to process.
Once your account is active, explore available sports teams to invest in (details below).
Investing in a Sports Team through Private Equity
Instead of purchasing publicly traded stocks, consider investing through a private equity firm specializing in sports team acquisitions. To qualify as an investor, you generally need to be accredited, with a net worth exceeding $1 million and an annual income of $200,000.
Private equity firms offer opportunities to invest in professional sports teams across major U.S. leagues (MLB, NBA, NFL, NHL) and minor leagues with less stringent ownership regulations.
While private equity investments may limit your team selection, they provide access to exclusive opportunities unavailable to the public.
Available Sports Teams for Investment
For those investing in public markets, several U.S.-based teams are available for purchase. Some of these stocks and their ticker symbols include:
- Atlanta Braves Holdings (BATRK)(BATRA)
- Owns the Atlanta Braves MLB team and related real estate assets.
- Madison Square Garden Sports Corporation (MSGS)
- Owns the New York Knicks (NBA) and New York Rangers (NHL).
- Manchester United (MANU)
- Owns Manchester United Football Club and related businesses.
For those interested in foreign investments, European teams such as Juventus (JUVE) and Borussia Dortmund (BVB) are available for purchase. While these stocks trade on U.S. markets, international trading options may be available through select brokers.
It’s important to note that novelty investments in sports teams may also arise, offering non-economic benefits to investors who are passionate about supporting their favorite teams.
While fans can invest in the Green Bay Packers during share offerings, these investments do not yield financial returns. Shareholders primarily show their support for the team and may receive non-financial perks.
Evaluating the Team’s Financials
Prior to investing, conduct a thorough review of the team’s financial standing. Consider factors such as the team’s diversified revenue streams, financial statements, and the history of publicly traded sports teams.
- Understanding the Company’s Diversification: Many sports teams have additional revenue sources beyond their core team operations, including real estate, broadcasting, and merchandising.
- Reviewing Financial Statements: Assess the company’s debt levels, income generation, and overall financial health to make informed investment decisions.
- Studying Publicly Traded Teams: Recognize the trends in sports team valuations and potential acquisition opportunities to anticipate future returns.
Remember that a successful team does not always translate to a profitable investment. Understand the investment thesis and how it aligns with your financial goals.
Conclusion
Investing in a professional sports team can enhance your enjoyment of sports and potentially introduce investing concepts to others. However, prioritize sound investment principles over emotional attachments when selecting teams for investment.
Editorial Disclaimer: Investors should conduct independent research on investment strategies before making decisions. Past performance is not indicative of future returns.