So you love sports and everything about them and have decided that you want to invest in buying a sports team — but chances are you’re not sure how to go about it. The first step is to start exploring your options so that you can see what’s out there. It might not be possible to get your hands on a major league team just yet, but you might be able to gain access to the finer things that come with owning a share. Alternatively, you might want to cut your teeth on the lower levels and learn from the ground up. However you go about it, here are three tips to help you on your way.
Buying a Share of a Team
Buying shares of a sports team is the same as buying shares of a corporation: The more you buy, the more perks you get. If you’re only buying a small amount, you’re just a stockholder and have no real perks apart from silent ownership and a return on investment. Some teams offer a noncontrolling share option that allows you to fork over a lot of money and get access to skyboxes, season tickets, catering, and more, but each team is different in how it handles shareholders. If you want to have a say in how the team gets run, you might find that buying a share isn’t the way to go and that it’s time to look at smaller leagues.
Purchasing in the “Lesser” Leagues
Many major league teams are valued in the billions due to their media contracts, licensing fees, ticket sales, and other revenue generators. Some are legacy-owned, whereas others were purchased by groups that pulled together funding for the purchase. But that’s not to say that you’re completely out of the game. Small, local leagues are easier to buy and don’t cost as much as the majors. Plus, they’re a step in the right direction — toward the big leagues.
Smaller sports teams offer you the opportunity to learn how business and sports come together while creating entertainment for the fans. You get the chance to helm the ship and make the decisions on how the team runs throughout the season. This translates into a skill that you can use later, while making your way toward the bigger leagues.
Join an Investment Group
Some sports franchises allow group ownership of sports teams, but not all. Take the NFL, for example, which strictly regulates how many people can own a football team. Unless you have a large personal fortune — or a lot of money in the family — the NFL is out. Other sports franchises, however, allow non-related groups of people to buy teams as a way into the sport. Doing so also isn’t as expensive as trying to buy a team outright.
Take the time to do the research on your chosen team before buying in. You want to make sure that you’re not throwing good money into a bad team in your quest to live your dream. But never lose sight of that dream, because it just might come true.