Investments in Sports Teams

June 9, 2013 Finances, Sports

Sports fans sometimes dream of owning their favorite team and all the changes and improvements they’d make to turn their team into champions.  While they probably will never have the fortunes necessary to buy a major league sports team, there are other ways that they can invest in sports teams for both profit and bragging rights.

Invest in Publicly Traded Teams

sports KansasPerhaps the easiest way to invest in a major league team is to buy shares.  There are a handful of publicly traded teams, including the New York Knicks and the New York Rangers.  The Green Bay Packers aren’t traded on an exchange and do not pay out dividends to shareholders. They release stock when they need investment, such as to raise money for renovations to Lambeau Field in 2011.

It’s also possible to invest in the companies that own a specific team.  This type of still offers the claim of partial ownership and, in many cases, a better chance of financial rewards on the investment.  For example, the Seattle Mariners are owned by Nintendo, the Atlanta Braves by Liberty Capital Group, and the Philadelphia Flyers by Comcast-Spectator.

Lastly, a few Exchange Traded Funds (ETF) have small investments in companies with sports team affiliations. With a little bit of research it’s possible to identify ETFs that are invested in the corporations listed above as well as others with ties to major league teams.

Buy a Minor League Team

It is within the reach of some investors to purchase a minor league sports team.  Bottom level minor league baseball teams can go for as little as $100,000 with slightly better teams wielding a price tag around $250,000.  Investors with deeper pockets, or those willing to own a share of a team rather than all of it, should know that the top tier triple-A baseball teams may run $20 to $25 million. However, when it comes to minor leagues, there are a lot of options besides baseball. Hockey, rugby, soccer, football, and even lacrosse offer minor league teams.

The caveat here is that a sports team is a business. Potential buyers need to consider the financial performance of the team, not just how they do on the field. With the right financial management, some minor league teams can be steady money makers for their investors.

For those who want a more personal and immediate investment, there is the option of investing in sports memorabilia. Collectors can sometimes make huge profits on simple investments like baseball cards, autographed photos and balls, and other collectibles. This type of investment usually requires a much longer view toward profit, but it offers an immediate connection to the team in question through the collectible object itself.

Article provided by Scott Tucker Kansas of Level 5 Motorsports

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Setting Goals

May 15, 2013 Business

We all know how important it is to have goals.  They help us to make long-term plans and predictions, and also give us a good map of where we are, and we are going.  Even the most focused among us, however, have tendencies to forget about the basic necessity for setting goals on a regular basis.  It’s something that we learn in school, and only occasionally get refreshment at corporate training sessions, when we get reminded as a group about the importance of goals.  It’s also perfectly natural that, after learning about goals for so long, we tend to think we understand the concept.  We have ideas running through our minds all the time about our goals, our immediate goals and the bigger pictures, and use these as a kind of internal rudder through the world.

businessHowever, when these are only thoughts and ideas, and not actually set to writing, they are much more elusive than we tend to imagine.  They are subject to change from moment to moment, because it’s in our instincts to be constantly examining and evaluating a situation in front of us, whether it’s an immediate situation that needs attention, or simply life as it is.  Without formal goals that we can keep referring to, our inner sense of direction is subject to enormous shifts, and it’s very common to find ourselves pursuing things without even remembering why.

This is why refreshing our notion of how goals work is such an eye opening experience.  In leadership training, it’s something we learn so that we can pass it along to our team, but it’s also something that reminds us of how things can work more effectively.  It’s a model that works not only in the business sector, but can be enormously effective in daily living.  Setting goals for the day, the week, the month, up to the next five years, is a wonderfully simple way to move things from imagination to manifestation.  Goals give us a sense of who we are at any given moment, in relationship to where we’re going, and where we want to go.  And sometimes, it’s extremely exciting to realize that the goals have shifted, and with awareness, we can pinpoint exactly why, and this enables us to move forward with purpose.

Article provided by Money Mutual

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Online vs. Offline Companies

May 8, 2013 Business

One might think that running a business online and offline will be similar, it will just differ based on how you access your customers and your information, but there is a lot more to it than that.

businessIn an online business it can be hard to build customer loyalty. You have at your fingertips email, and forums of various types, if you are lucky you also have the ability to call your clients, but not all online business have this. If you have an offline business you can see people face to face, talk with them, visit their office and see who they are, shaping your sales pitch to their wants and needs. It is easier to build loyalty with an offline business for this reason. People are more likely to trust you and want to buy from you if they get to meet you in person. There are still ways to build loyalty as an online company, many of which focus on communication, but they can include blogs, supreme customer service, video, forums and social networking.

There are also other tradeoffs as well. In an online business you usually get people who know exactly what they want and need minimal help. They come to the online store because they know they can get that product there. Because of this you put money into targeting people and audiences and have to spend less money talking to every person who comes in. In an offline business you do get walk in traffic . Often times people who don’t know what they want, or that they want anything at all. The bonus here is that if your product is good enough, many of them will want it even though they didn’t know they wanted it. It can be a little harder to get people into the store, you need to have a great location and you need to have a great product, but you are more likely to get sales from people who don’t know what you have, or what they want.

On either side there are trade offs, which means that the best business will use a little from both models and combine them.

photo by: laverrue
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It’s Still Wise to Invest in Software Companies

May 8, 2013 Technology

Software companies have been good investments for years now, ever since the technological and digital revolutions of the last two decades. And while there was an Internet bubble more than a decade ago with websites and faulty tech stocks, there doesn’t necessarily appear to be one on the horizon any time soon for new tech stocks in 2013 and beyond.

softwareIn fact, countless tech companies continue to deliver solid returns through 2012, and should do so into 2013 and the future with smart management teams who have learned from the mistakes of the past, and develop future business products and product lines that can diversify their work and increase their profits.

Tech Companies Are Smarter Now

One reason why it is still wise to invest in software companies is that these companies have realized and learned from past mistakes, and now know exactly what not to do after watching the tech implosion of the 1990s. Management teams understand overvaluations, and now can smartly see what they should and shouldn’t do when it comes to valuing and developing companies.

In doing so, these companies, and the tech industry in general, are actively learning the lessons of the past and avoiding the tech bubble that so plagued the country a decade ago. No more problems when it comes to the digital industry; instead, just smarter, steadier growth that makes software a wise investment.

Social Companies Rule The Day

For people looking to invest in a variety of tech companies, social media organizations like Facebook and even Google make smart investments in 2013. Their stock prices are sure to continue to rise, simply because of how many people are using them and their products around the world, and how much knowledge companies like this have about their users and customers.

Facebook in particular is an interesting stock that has struggled on the market thus far in its life as a public company, but is certain to pick up simply because of how many hundreds of millions of people are on the site itself. It will be interesting to see if they can continue to rise over time, but they are a smart bet when it comes to developing as a tech stock in the future.

Technology Isn’t Going Anywhere

In the 1990s, we weren’t sure about websites and technology, being so new to the digital world from an outsider’s perspective, but come 2013 and we are all immersed in this world completely. No more guessing about technology and what it might be capable of; technology is clearly here to stay, and we aren’t going anywhere with it instead of using it more and more, every single day.

In all, it’s never been a smarter time to invest in tech stocks and software companies. A variety of companies, from Google to Apple to Facebook to IBM fit the bill for various needs, but overall, a software investment is a wise investment and a smart way to spend money in today’s stock market.

Leo Charrel writes about technology and finance for a variety of websites and blogs. He also covers software companies like Clickpoint (trial here) Microsoft, and Intuit.

photo by: qthomasbower
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Motorcycles, Money and Racing

May 8, 2013 Automotive

motorbikeThe motorcycle is an image of freedom and independence. How many teenagers go through that period and discover the classic movies like Born to Wild and Scorpio where Peter Fonda epitomizes the very freedom the American flag is supposed to symbolize with a helmet? The motorcycle is a part of the American consciousness, an almost Jungian collective consciousness in the United States. Romantic, the motorcycle has almost become an extension of the Byronic hero. That lone figure who fought the man and anything that made society stable, who was dark and brooding, who often had innate darkness in him driving him to do the things he did. Victor Frankenstein with his creature is perhaps one of the best examples, but a more modern version would perhaps come from a comic book.

Batman is a Byronic hero. He with his Batmobile, a kind of motorcycle, epitomizes that haunted loner. That was why my coworker, Simone, wanted to get a motorcycle. She didn’t just want to get a motorcycle, she wanted to get it as the symbol represented. She wanted to know all of what went into creating its mechanical gizzards, its gas and oil bodily fluids. Simone initially started with an automotive repair Manual like http://www.haynes.com, but soon the information in it was not enough to satiate her need to understand how a motorcycle works. It was not just the motorcycle she wanted to understand: she hoping in figuring out the motorcycle and what went in making she would somehow start to grasp the independence it represented for so many riders before her.

A motorcycle repair manual was her subsequent purchase and it suited her. It was a while before she could afford a motor cycle. Student loans and bad credit hurt more dreams than help them. Instead, she had to be satisfied with trips to the junkyard where a man named Sam indulged her in her passion for the vehicle of independence. He taught her on old motorcycles how to change the oil, how to dissect an engine and then stitch it together using a wrench for the needle and bolts and nuts for the buttons.

For more information on racing click here

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A Mortgage for your Design Studio

May 7, 2013 Business

Applying for a mortgage loan can be stressful.  For most of us a design studio is the biggest purchase we will ever make. There is lots of paperwork to be collected and forms to fill out Then there’s the additional stress of waiting to hear if your loan has been approved.

When you submit your mortgage loan application and the associated paperwork relating to your finances it will take a period of time for the lending company to review it.  The reason for the time lag is that they are closely reviewing your financial history and making sure that everything appears in order.  The application will be submitted by the lender to an underwriter.  They will have the final word on whether the loan is approved or not.  They will also look at the property to assess whether it will keep it’s value.

Often during this stage you will be asked for more information relating to your financial history.  This is quite common especially as lending institutions these days are much stricter about giving out loans.  Its also a good sign as they are looking to approve you!  You should receive a good faith estimate within three days.

The underwriter will often enter some conditions that have to be cleared up before the loan is given.  It is important that you treat the conditions with the utmost haste as it can really slow down the loan process.  They often look for proof of where your money came from, letters verifying employment, your employment history — there are many additional items that they may look at.

This may involve things like a Verification of Employment, a statement from your bank that the funds on your bank statement are still in the bank or proof of where those funds came from.  So be prepared to submit much more paperwork than originally advises.

Jonathan Kerner is a respected financial analyst and blogger who contributes regularly to financial and real estate sites such as www.moneymutualcomplaints.com. 

Image via Creative Commons

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Formula 1 – German Prosecutors near decision on Bribery

April 26, 2013 Uncategorized

While there is not any foul play going on in the Formula 1 world today—that the public knows of—a year ago it was a different story.  In June a German banking executive admitted to accepting around $44 million from Brian Ecclestone which centered around the 2005 sale of the racing franchise.

The story is, itself, somewhat interesting.  Ecclestone sold a majority of his stake of F1, which was valued around $3 billion, for an undisclosed sum.  Said German executive, Gerhard Gibkowsky, accepted the bribe to move the F1 share for below market value.  Ecclestone testified that he paid the $44 million because he felt threatened.

As is the case with a lot of white collar crime, what is actually the case is usually unclear, but in this particular situation, it is obvious that money changed hands that shouldn’t have.  But what does this mean for racing as a whole?  Well, the very act spells bad news, but the fact that somebody got caught and has to face the music bodes well for the sport as a whole.

See, criminals, especially ones of this caliber, don’t commit crimes unless they think they can get away with it.  The money changed hands so that a so far unnamed party could profit from the undervalue sale of F1.  Gibkowsky and Ecclestone teamed up for it, but were caught red handed.  With the prosecution of the former, it sends a message to other bankers, investors, and F1 managers.  That message is that behavior like this cannot and will not be tolerated—at least by the courts.

There is something lacking, though.  Fan outcry is one thing that nothing can ignore, and with the modern advent of the internet, it is all the easier to organize people to let a given company or organization know that they did something that upset their fans.  A good example is the Nissan Sentra SE-R, which used to be a fairly fantastic sport sedan until the late 2000′s rolled around, when it got a bottom shelf engine.  Fans were outraged, and while Nissan hasn’t done anything about it, they certainly know that there is a problem.

The point is, F1 fans should be up in arms about this kind of thing.  It reflects poorly on the franchise, both from a business standpoint and a moral one.  After all, if higher-ups are willing to throw money around like that for some extra cash or power, what’s to say they aren’t fixing races as well?  These executives have plenty of cash—they don’t need to step outside the law to line their already full bank accounts.

Bradley Abrams is a banking professional and a blogger.  He is a keen racing fan and regularly writes on the ALMS racing circuit and is a huge fan of Scott Tucker racing and the Level4 Motorsports team.

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There’s Still Money in Real Estate

April 19, 2013 Real Estate

Recent years have been a little shaky for the real estate market, but things are definitely picking up. The real estate market is experiencing a decided upturn across North America and investors as well as corporations are choosing to expand their real estate portfolios in order to enhance their financial standing. Investment properties can be rented out in the form of businesses or residences that can provide the investor with income on a regular basis, or sold for a profit in the future.

skyscrapersThere are many ways that both private and corporate investors can make money in today’s real estate market. Some of these ways include:

  • Purchasing raw land allows you to enhance the land as you see fit and rent or sell these enhancements. The land can also be subdivided and sold in parcels.
  • Single-family homes remain the most common real estate investment for those new to the investment seen. These homes are the easiest investment property to rent or sell, and it is generally recommended that investors have more than one single-family home in their portfolio.
  • Multifamily homes in the forms of duplexes, triplexes or even quads are often considered a healthier investment as they are is easy to finance as a single-family home, but offer a greater opportunity for cash flow as there is more than one tenant in the property.
  • Apartment complexes offer tremendous potential for investors, but require corporate lending in order to finance the initial purchase of the complexes. When well-maintained, however, these apartments represent a solid source of largely passive income on a regular basis
  • Though an often lesser acknowledged element of the real estate industry, privately owned hotels and motels can offer tremendous benefits, particularly if the property is located in an area that sees high tourist traffic. Significant income can be generated through the renting out of individual rooms, as well as the opportunity to use the property for special events such as weddings.
  • Commercial properties allow investors to purchase buildings and then rent them for use by business professionals or companies as retail space, offices or storage.

Study companies like Starlight Investments to learn more about real estate investment opportunities.

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Business Valuation: What is It?

April 16, 2013 Business

Business valuation is a means of determining the economic worth of a particular entity.  Before determining the value of a business, the reason for the valuation must be stated.  Most often the reasons range from sale of the business to dividing assets in divorce cases to setting employee stock options to mergers.  There are certainly other determining factors in initiating this process; the aforementioned gives you an idea of a few of the events creating the need.

This post will touch briefly on the variables considered in formulating a business valuation and business appraisal.  It will not go into the details regarding the intricacies of formulating the reports, as they are vast and varied.  However, you should gain insight into the importance of having a valuation in place.

Two Types of Business Valuations

There are two types of business valuations.  ‘Going concern’ valuation is assessed for an active business, whereas ‘liquidation’ valuation surrounds the termination of an enterprise.  In the event of the sale of a business, fair market standards may be the premise for the valuation.  This would compare the worth of like businesses in the area in order to determine the fair market value.  In the event of termination, the assets, including revenue, less outstanding debt would more likely be the method of valuation.

Business Valuation is Required for Various Events

A business valuation is required in the event of mergers, acquisitions and franchise development.  The purpose is to determine the current value of the enterprise as a financial tool in the formulation.  In the event of a merger, an existing company combines its assets with another to form a larger business.  An acquisition, on the other hand, occurs when one business or groups of business purchases another taking control as new owners.  It is extremely important in either case to have a full evaluation report in place.

Business Appraisals

Business appraisals, while not guaranteed are the process of determining the value of a business by examining financial statements, analyzing assets and conducting market research as it relates to the business’ industry.  Business appraisals are estimates based on The Internal Revenue Service Revenue Ruling 59-60.  In this ruling, the following information is gathered in order to compile the business appraisal report:  history and nature of the business, overall economic outlook, book value of the business, earning capacity, dividend paying capacity, goodwill and intangible assets, recent sale of stocks and the market value of comparable enterprises.

Whether you are a new business, an established business, public or private business, we hope this article has served to enlighten you as to the importance of having a business valuation or business appraisal in place.  Being informed will serve you well in the event of a sale, purchase, merger or property distribution.  Keep good financial records.  They are a key component in both the business valuation and business appraisal.  In conclusion, know the worth of your business.  You owe it to yourself and the future of your business.

Read more about business valuation at http://veriticonsulting.com/services/business-valuation/.

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Changing Job Market and Careers in Graphic Design

April 11, 2013 Money

While the job market continues to be unstable, it can also be somewhat troubling for college students, and those about to enter college, to know that career fields are constantly changing. There are different elements that go into choosing your career and one of them is personal interest and areas of talent. Meanwhile, another very important and practical aspect of career choice relates to job placement possibilities as well as long term stability in the field.

Graphic design is one of a few fields that has always attracted many talented people. It has also drawn the interest of creative minded individuals, though many people assume you must have a natural talent to succeed. It has a definite appeal to a variety of demographics, and the changing dynamics of the workforce has actually drawn in what might have been tentatively interested people in the past. And as technology changes the face of todays, as well as the future of the workforce, careers in graphic design continue to increase and become ever broaden in spectrum. It is one area that technology is enhancing, and this is an attractive career-seeking factor. In fact, the US Bureau of Labor Statistics has been quoted as indicating an expected growth increase of thirteen percent in the field between the years of 2008 and 2018. This indicates a strong potential stable career for students who are considering entering the field.

Financial specialists, career counselors, money mutual, and other professionals recommend researching the projected future of career fields in addition to the amount of expected income that can be associated with them. There are about 300 schools approved by the National Association of Schools of Art and Design. Many jobs require a bachelors degree, though sometimes an associates degree in graphic design will qualify the student for a job. Its important to balance the highest level of education possible with your expected job position. With this in mind, students must also weigh in the amount of education that is necessary as well as how they anticipate paying for it. Borrowing your way through school may get you your degree, though its a good way to keep in debt for many years. Scholarships and grants might be available, as well as working yourself through school. Its beneficial to contact a financial counselor and check sites like moneymutual for information on loans and financial advice. Education and quality career planning is extremely important and taking on new meanings as the changing world of technology also changes our world.

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