Usually, to be an owner in any capacity of a sports team, one has to be fantastically wealthy to even think of it. However, for the sports fan with some money to invest, there are a small number of publicly traded sports teams, a few of which aren’t bad stock picks.
Not many American publicly-traded sports teams to choose from
One of the lyrics in the song “Money” by Pink Floyd goes “I think I need a football team.” Granted, they don’t mean the NFL, since soccer is called football everywhere except Canada, Australia and the U.S. However, it would be neat to be the owner of sports team. The hitch is that most sports teams are privately owned. To buy one or an ownership stake, one has to be rich.
A small number of sports teams, however, are publicly-traded, meaning that shares are bought and sold on stock markets. For not a whole lot of money, a person can buy a share in publicly-traded sports teams and are technically an owner, even if that one share doesn’t amount to much. Some are even decent investments. However, most are sports teams in other countries.
Fastest IPO on earth
Earlier this year, it was announced that Formula One, the world’s premier racing series, was going to have an initial public offering in Singapore. Unfortunately, according to the Wall Street Journal, the majority owners of Formula One, CVC Capital Partners, put the brakes on the Formula One IPO. However, they do plan to hold it later this year.
The IPO scheduled for a major sports franchise is for Manchester United, according to The Atlantic. Manchester, also called “Man U” or “The Red Devils,” are essentially the New York Yankees of soccer and are not only going to have an IPO, they decided recently to stage it in the United States instead of Singapore, where the team’s owners had initially planned on holding it. The team is mostly owned by the Glazer family, according to the Wall Street Journal, who also own the Tampa Bay Buccaneers of the National Football League.
Only some are decent buys
Manchester United, once trading begins, might be a good buy in the long run, as it is basically the biggest sports franchise on the planet. Madison Square Gardens, the famous venue, is also not a bad stock, according to Daily Finance, as it has consistently traded above the Standard and Poor 500 market average.
On the other hand, the American Basketball Association, a semi-professional basketball league, is currently selling, according to Businessweek, for 5 cents per share. World Wrestling Entertainment is also publicly traded, but according to Daily Finance, hasn’t been doing that well lately.
Some other famous soccer teams are publicly traded but according to the Atlantic, don’t do as well as typical stocks, as their market performance is heavily tied to game performance, and losing streaks tend to tank share value.
Only one American sports team is publicly-traded, namely the Green Bay Packers. They are an oddity, as the NFL forbids more than 32 owners of any one team. However, the Packers joined the league before the rule was instated. It’s a terrible investment, though. The stock can’t be sold for profit and the team, a non-profit, pays no dividends.
Daily Finance: http://www.dailyfinance.com/quote/nyse/world-wrestling-entertainment-inc/wwe