For some sport fanatics, simply watching their favourite pastime is not enough. Many people who become invested in these pursuits want to seek ownership of their favourite club or team.
Unfortunately, many chairpeople and directors of teams have funds far beyond that which most of us can achieve. From the sheikhs of Saudi Arabia to Hollywood A-List, it takes big money to buy a club outright. That is why for others, alternative methods of investing in sports are available.
Owning Part of a Team
The best way to own shares in major teams and clubs is to invest in the companies that own them or have a large share. For example, the Walt Disney Corporation once owned a major part of the Anaheim Ducks NFL team. Many exchange-traded funds also have ownership in sports clubs. However, this does require some deep research on your part, particularly if you have a specific club or team you want to invest in.
Another easier way to get involved in a team is for a company to become a direct sponsor. If you are part of a large organisation or even own it, then it may be possible to sponsor a team. The advantage is that you get free advertising. However, the size of your company will dictate the level of club you can choose to be involved with.
Buying Directly
There are few opportunities to buy directly into a club or sports team. The only professional club in existence to sell shares directly to the public are the Green Bay Packers NFL team. The company has been this way since 1900 when the team began to struggle financially and was turned into a cooperative of sorts. Shares become available around every ten to twenty years, so you will have to wait patiently for the next batch to go on sale.
One sport that goes against the grain with ownership methods is horse racing. Many horses are owned by syndicates, who pool their money and resources to buy horses that are entered into races. Once funds have been used for training and keeping, any money that is won in races is given back to the syndicate.
Shares in horses can be bought for much less than you would expect. Online syndicates now offer racehorse ownership to very high standards, buying quality horses and giving you actual shares in the animal. They will also offer first-class content and service so you can easily keep track of your investment on and off the field.
Considerations
There are plenty of considerations to make before you invest in a sports team or individual. The first is that like any investment, you run the risk of losing money. Nothing is guaranteed and you should not invest money you are not willing to lose.
Another is that when investing in teams, you should be aware that many of them operate on a loss, particularly the bigger national and international clubs. People buy them to increase the value of the asset and sell them at a later date. Always keep this in mind, do your research and you may find your sports investments do work out after all. At the very least, you will have great fun and it will enhance your experience as a spectator.
