February 8, 2011

publicly owned pro sports teams

Posted in investing tagged , at 8:25 pm by weiszguy

A friend of mine was bragging recently about his favorite football team, the Packers, which is publicly owned.  Being publicly owned is a huge advantage over private ownership, because the team isn’t as susceptible to the whims of the owner.

I’ve never heard of a publicly owned team before, so I went to check it out.  From the blurb on Google Finance, I found out that “shares [of the Packers] do not increase in value nor pay dividends, and can only be sold back to the team.”  Kind of curious.  Share prices that don’t fluctuate, don’t pay dividends, and can’t be sold?  I give the team some money and I get nothing for it?

On the Packers website, I learned that there have only been four offerings of shares in the history of the team, and there is no way to buy in at any other time but the offerings.

None of this makes any sense.

But what if we had actual, publicly-owned, publicly-traded sports teams?  You could buy and sell shares of the teams on the open market, and the share price would fluctuate with supply and demand.  Each team could potentially pay dividends, or not, just like any other public company, whose board decides dividends based on the best interests of the shareholders.

Different teams would have different share prices, of course.  Buying a share of the Green Bay Packers in the week before their Super Bowl appearance would probably cost a small fortune.  Shares of the Carolina Panthers, after a somewhat underwhelming 2-14 season, could be had for a song.

Now all we need is to convince Jerry Jones to go public.

Advertisements

2 Comments »

  1. Rob said,

    No other team can be publicly owned. Its a law. The Packers were grandfathered in. I myself own one share of stock. This means I get one vote every year for each line up for election at the shareholders meeting. I get to help decide who runs the team. Its pretty cool actually.

    • jesse said,

      Hahahahahahaha! Your “vote” is so diluted that it is useless. You have no voting power. The people that own the team are not going to give power to average fans. And “publicly owned” is very wrong. The organization is non for profit. But the people who run it make big profit. But because the money they are given is considered a salary, The team is looked at as non for profit. If the team is publicly owned, then answer some questions: Why haven’t Green Bay citizens received a profit check? When will property taxes be lowered as a result of all those public profits? Last I checked, taxes went up a half percent. Publicly owned my ass.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: