How To Invest in Sports Teams and Groups

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Lots of people dream about owning a sports franchise. Those who fulfill that dream belong to a very exclusive club. For the rest of us, there are opportunities for fractional ownership of sports teams by investing in the corporate parent companies that own those teams.

While professional sports may appear to be lucrative due to the huge player contracts, the reality is many team owners seek an increase in value rather than profits.

During the first few years of the pandemic, the global lockdown and quarantines disrupted play, and thus the profits, for every professional sports league.

Even before then, some teams consistently lost money. The value of franchises like the Dallas Cowboys, however, has increased year after year. And with play back to normal, there are select opportunities for savvy investors.

Here are some ways that you can get into the game, even if you don’t have a bank account the size of Dallas Mavericks owner Miriam Adelson.

Key Takeaways

  • Your average investor is unlikely to ever own a sports team outright.
  • However, there are other ways to invest in a team or franchise that you love.
  • You can buy shares in the corporate parent of a particular team or in a company otherwise affiliated with the ownership of the team.
  • You can also buy exchange-traded funds (ETFs) or mutual funds that invest in the parent companies of select sports teams.
  • Depending on the amount you have to invest, it is also possible to be part of an ownership group that focuses on teams in small markets, such as the minor leagues.

Corporate Ownership and Affiliations

Several major companies have stakes in professional sports teams. Or, they may have an affiliation with the owner of a team.

Unfortunately, buying shares in these companies won’t get you box seats, free tickets, or other perks. But becoming a shareholder may add an extra element of excitement when you tune in to watch teams play.

Here are some popular franchises and their owners:

  • Miami Heat: The Heat’s owner is Mickey Arison, chairman of Carnival Corporation, the world’s largest cruise ship operator.
  • Seattle Mariners: The Mariners’ owner is businessman John W. Stanton.
  • Chicago Cubs: The Cubs are owned by a family trust established by TD Ameritrade founder Joe Ricketts.
  • Toronto Blue Jays: The Jays’ owner is the Rogers Blue Jays Baseball Partnership, a division of Rogers Communications.
  • New York Knicks and New York Rangers: Both teams are owned by Madison Square Garden Sports Corp.
  • Philadelphia Flyers: The Flyers’ owner is Comcast Spectacor, a Philadelphia-based sports and entertainment firm.

Exchange-Traded Funds (ETFs)

Another option is to invest in ETFs that have a small percentage of their funds invested in companies with sports team exposure. Here are a few to consider:

  • EWJ: The iShares MSCI Japan Index Fund
  • FXD: The First Trust Consumer Discretionary AlphaDEX Fund
  • IAI: The iShares U.S. Broker-Dealers & Securities Exchanges Fund
  • PEJ: The Invesco Leisure & Entertainment Portfolio

If You’re Shopping

The cheapest NFL team entering the 2024 season was the Cincinnati Bengals, valued at $4.7 billion.

Green Bay Packers

The Packers, named after team co-founder Curly Lambeau’s employer, the Indian Packing Company, is the only professional sports team that actually sells stock directly to the public.

When the franchise floundered in the early 1920s, local businessmen nicknamed the “Hungry Five” formed the nonprofit Green Bay Football Corporation.

Stock sales occurred in 1923, 1935, 1950, 1997, 2011, and 2022. As of 2024, 538,967 shareholders held a total of 5,204,625 shares of stock. The articles of incorporation prevent any individual from owning more than 200,000 shares.

NBA revenue surpassed $10 billion for the first time in the 2021/2022 season. It reached $10.58 billion in the 2022/2023 season, which included over $1.4 billion in sponsorship revenue.

Minor Leagues

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 minor league team. Venture capitalists and institutional investors handle financing deals for ownership groups that focus on teams in small markets.

This type of investment has its appeal. For example, independent teams aren’t burdened by the rules and obligations of league affiliations. In addition, many teams have upgraded their facilities to better compete with the big leagues and boost public attendance.

Can You Buy Stock in the NBA?

No, you can’t buy stock directly in the NBA, but you can buy shares of publicly traded companies that have sponsorship or other deals with the NBA. Alternatively, you might buy shares of the media companies that enable viewers to watch the games. Or you can buy shares of companies that own or are affiliated with the owners of NBA teams.

Can You Buy Stock in the NFL?

Just as with the NBA, it is not possible to buy stock directly in the NFL because it’s a league, not a publicly traded company. However, you can invest indirectly by purchasing companies, mutual funds, or ETFs that are indirectly connected to the NFL. You can also, at select points in time, buy stock in the Green Bay Packers, the only NFL team that allows such an investment. 

What Is the Most Profitable Sports Team in the World?

The Bottom Line

Whether it’s through an affiliated corporation, ETF, minor league team, or the next round of Packers financing, investing in a sports team could be a fun and unique way to diversify your portfolio.