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Author Topic: Some publicly traded sports groups have stock for sale  (Read 1027 times)
TulvienneM
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October 04, 2014, 07:03:46 AM
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Generally, 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 number of which aren't bad stock picks. Article source:

https://personalmoneynetwork.com/

Not a lot in America



Pink Floyd points out how nice it would be to own a sports team in the song “Money” where it talks about the ownership. You have to be prosperous to get in on the action though. This is because most groups are privately owned. It is not very inexpensive to start owning an entire sports team, specifically if the team is good.



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 <a href="https://personalmoneynetwork.com/">money</a>, an individual can purchase a share in publicly-traded sports groups and are technically an owner, even if that one share doesn't amount to much. Some are even decent investments. However, most are sports groups in other countries.



Getting in on IPO



The Wall Street Journal explained that Formula One, the premier racing series in the world, could not hold its initial public offering planned for earlier this year because of decisions made by majority owner CVC Capital Partners. Later this year, the Initial Public Offering in Singapore might still occur, though it is on hold for now.



The IPO scheduled for a serious 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 U.S. rather than 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, can be a good purchase in the long run, as it is essentially the biggest sports franchise on the planet. Madison Square Gardens, the well-known venue, is also not a bad stock, according to Daily Finance, as it has consistently traded above the Standard and Poor 500 market average.



According to Daily Finance, it would not be good to publicly trade World Wrestling Entertainment since it has not been doing very well. BusinessWeek also points out that the American Basketball Association is trading for 5 cents per share, which is also bad.



Some other famous soccer teams are publicly owned but according to the Atlantic, don't do as well as typical stocks, as their industry 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.



<strong>Sources</strong>



<a [Suspicious link removed]j.com/article/SB10001424052702303734204577464292348447640.html">Wall Street Journal</a>

<a href="http://www.theatlantic.com/business/archive/2012/06/want-to-invest-in-the-worlds-most-valuable-sports-team-now-you-can/258491/">The Atlantic</a>

<a href="http://www.dailyfinance.com/quote/nasdaq/madison-square-garden/msg">Daily Finance</a>
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October 05, 2014, 10:48:15 AM
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Sports stocks, at least in Britain, are known as reasonably poor investments. Just look at how manchester uniteds share price fluctuates so much with new manager and player announcements

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October 05, 2014, 02:13:58 PM
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Sports stocks tend to be rich on PR RoI not so good in money terms. Too often passion rather than bottomline drives the decision to invest.

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October 05, 2014, 02:58:50 PM
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A sports teams' primary source of income is advertising, massive, massive amounts of advertising, it's not the kind of thing you'd invest in if you were looking for a long term business that actually produces stuff for economies.
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October 05, 2014, 03:34:12 PM
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A sports teams' primary source of income is advertising, massive, massive amounts of advertising, it's not the kind of thing you'd invest in if you were looking for a long term business that actually produces stuff for economies.
I would disagree. If a sports team can build it's fan base and increase attendance to their games then more people will see advertisements that are sold by the team. When more people see the advertisements then advertisers will pay more.

It is a very complex business and increasing revenue is more complicated then selling a better product
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October 05, 2014, 03:37:02 PM
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To be frank, I'd consider it the same as putting up a church organisation onto the stock market in that case, they're relying on fans to keep coming and supporting them, even the music industry is more honest in that it actually gives them a product they can enjoy even if the company goes out of business, the live shows are just a bonus, not their main source of income.
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October 05, 2014, 11:37:47 PM
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To be frank, I'd consider it the same as putting up a church organisation onto the stock market in that case, they're relying on fans to keep coming and supporting them, even the music industry is more honest in that it actually gives them a product they can enjoy even if the company goes out of business, the live shows are just a bonus, not their main source of income.
Most sports organizations have multi year deals with advertisers so even if fan attendance declines temporarily revenue would not be affected.

Also when a company liquidates they do not give their product to their shareholders but sell their remaining inventory and give their shareholders a dividend if there is money left over after all their debts are repaid   

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October 06, 2014, 01:01:22 PM
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Sports stocks tend to be rich on PR RoI not so good in money terms. Too often passion rather than bottomline drives the decision to invest.

That is because sports games ends a lot longer compared to other leisure games.
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October 06, 2014, 01:13:25 PM
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To be frank, I'd consider it the same as putting up a church organisation onto the stock market in that case, they're relying on fans to keep coming and supporting them, even the music industry is more honest in that it actually gives them a product they can enjoy even if the company goes out of business, the live shows are just a bonus, not their main source of income.
Most sports organizations have multi year deals with advertisers so even if fan attendance declines temporarily revenue would not be affected.

Also when a company liquidates they do not give their product to their shareholders but sell their remaining inventory and give their shareholders a dividend if there is money left over after all their debts are repaid  

I'm already aware of how a publicly traded company operates, the point is, these aren't stable and productive businesses that directly benefit an economy, it's like owning stock in a T.V network, it's purely relying on entertainment value and keeping people interested.
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October 08, 2014, 02:40:01 AM
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To be frank, I'd consider it the same as putting up a church organisation onto the stock market in that case, they're relying on fans to keep coming and supporting them, even the music industry is more honest in that it actually gives them a product they can enjoy even if the company goes out of business, the live shows are just a bonus, not their main source of income.
Most sports organizations have multi year deals with advertisers so even if fan attendance declines temporarily revenue would not be affected.

Also when a company liquidates they do not give their product to their shareholders but sell their remaining inventory and give their shareholders a dividend if there is money left over after all their debts are repaid  

I'm already aware of how a publicly traded company operates, the point is, these aren't stable and productive businesses that directly benefit an economy, it's like owning stock in a T.V network, it's purely relying on entertainment value and keeping people interested.
That is essentially what a TV network relies on, as if people are not interested in their programming then they will not be able to receive revenue from advertisements.

Total revenue from advertisements has generally increased over time for major sports teams. Another source of revenue that sports teams have that TV networks do not is rent from vendors in the concession stand, as since they essentially have a monopoly over food sales, vendors can and do charge a premium and the ability to charge these high amounts coupled with the high demand for concessions would cause the market rate for rent to be large
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