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
Perhaps 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.