Any one of us would love to have the resources to own our favorite sports team. But let’s be honest, average people like you and I can't afford to own an entire sports franchise.
But what if there was a way to own just a slice ownership in your favorite NFL team?
There's one team that actually promotes it: The Green Bay Packers.
They're a unique case in American sports. Since 1923, the Packers have been a publicly owned non-profit corporation, which means that shares of stock are sold for fans to purchase and become part owners.
Could You be an Owner Too?
There are currently 112,205 shareholders, but the team is looking for more.
It just so happens that the Packers are looking to give their home stadium, Lambeau Field, a facelift and need around $130 million to do it.
As a result, they are selling stock for the first time in 14 years. The last stock sale took place between 1997 and 1998 and 120,010 shares were bought.
Sales started on December 6, 2011, but the team says they will continue selling shares until February 29, 2012 -- or until they sell out first.
250,000 shares are up for sale at a price of $250 each, plus a $25 handling charge. One caveat: There's a 200-share cap to ensure no one takes a controlling share of the club.
Shares can be given as gifts, too. Imagine giving your dad a certificate of ownership of his favorite sports team that he could frame on his wall. The ownership is even transferable within the family, so he could eventually pass it on to you if he so chose.
Interestingly enough, league rules established in the 1980s make it illegal for any NFL team to be owned by more than 32 owners. But the Packers aren't breaking any laws -- its personal ownership rules were set in 1935, and therefore were grandfathered in, keeping it legal for them to sell shares.
As the part owner of a pro football team, you must get some great perks, right?
Somewhat. Shareholders have voting rights, but not a load of extra privileges. Does it give them quick access to a game ticket? Nope, the waiting list for Packers tickets is over 93,000 names long and buying a share doesn’t help anyone move up the list any faster.
How about access to the team? Or maybe field access during the game? The ability to do a Lambeau Leap or mock Aaron Rodger’s touchdown dance? Unfortunately, the answer is no to all of the above.
So Is It a Strong Investment?
Surely owning a share of the successful Green Bay Packers is bound to be a great investment opportunity, right?
Not in a traditional way. The shares never pay a dividend and cannot appreciate in value -- even though private sales of stock often far exceed their original face value.
So, why would people want to want to own a part of the team when they don’t receive any of the perks that a typical team owner has?
There are three reasons:
1) Bragging Rights: A big part of ownership is to just be able to say that you own the Green Bay Packers.
2) Mutual Respect: Fans buy shares because they share the beliefs of the team. They want to stand in solidarity with a franchise that went against the grain from all other franchises, in part so the team could stay in it's home city (even though Green Bay has little more than 100,000 residents).
3) They're Cheeseheads: People buy into the Packers for the same reason any team owner spend millions buying a team -- because they're diehard fans of the team and the tradition. Sure, they probably won’t make money in the process, but being able to hang an ownership certificate on their wall is the ultimate souvenir
The Investing Answer: As of December 8, almost 75% of the original 250,000 shares have already been sold. If want to buy a piece of the Packers, you'll have to act fast.
Shares are being sold on the official Green Bay Packer's website now. If you want to be a part owner of one of the greatest franchises in professional football, you should jump at the chance to purchase shares of the Green Bay Packers before they're gone!
Facebook Comments:
Cached on May 24, 2012, 4:41 pm