I think many enthusiastic sports fans such as myself like to put on their GM "hat" and ponder moves that should be made to improve our favorite teams. I personally have hated and praised Brian Sabbean more times than I can remember, by judging his moves (or lack of) directly after they happen. Wouldn't it be cool to have an ownership share of your favorite team? Well, for only the 3rd time in sporting history (Green Bay Packers are public and the Cleveland Indians were once before) a professional team will soon be available for purchase on the stock market.
Manchester United recently announced it will file for an IPO that will make it available for public ownership on the stock market. While many Americans who don't follow soccer may not understand the magnitude of a team like this going public, its comparable to the Yankees going public. With Man U's strong record of succes, powerful brand reputation and soccer viewership growing across the world (including the US), Manchester United appears to be a real investment with potential growth.
While owning a small share of stock in your favorite team might not make the world of difference in how ownership acts, it could potentially have huge impacts on the franchises. One theory would be that it would reduce gaudy contracts, since teams would be forced to make decisions that were more fiscally responsible. Maybe the San Francisco Giants ownership wouldn't have spent 126 million on Barry Zito, a move that many people believe was pushed solely by the chief owner at the time, because there would have been so much pressure by the investors to make a better deal. How can you reason to fans during rebuilding, that 126 million for a slightly above average pitcher makes sense?
Maybe if the Oakland A's could gain some extra funding from an IPO, they too could make more moves in the market to combine with their excellent drafting and scouting. Smart investors would be able to buy low on teams with a plethora of talent down the pipe line or on teams with new owners that have a real plan to turn their franchise around. The extra funding from IPOs would be a huge help to small market teams that have good talent, because they would be able to gain new sources of cash. This might help small market teams to invest more in resigning free agents and making more "splash" moves.
Lets say all teams were public, I would be buying up these stocks:
- Tampa Bay Rays: Low payroll, strong results, solid development staff. If the franchise is sold, to a better market, stock value could shoot through the ceiling.
- OKC Thunder: Great young superstars, lots of room to grow. Potential multiple championships down the line
- Carolina Panthers: Cam Newtons potential, some nice defensive additions in the draft
- Washington Nationals: Strasburg, Harper, strong minor league system, great starting rotation.
It will be interesting to see what the future holds for sports franchises and going public, but I expect only a small minority with powerful brands will look to have their shares available to the public. I think it would be pretty cool to buy your favorite franchise during a rebuild, only to watch the stock soar when they return to greatness.
Lets say all teams were public, I would be buying up these stocks:
- Tampa Bay Rays: Low payroll, strong results, solid development staff. If the franchise is sold, to a better market, stock value could shoot through the ceiling.
- OKC Thunder: Great young superstars, lots of room to grow. Potential multiple championships down the line
- Carolina Panthers: Cam Newtons potential, some nice defensive additions in the draft
- Washington Nationals: Strasburg, Harper, strong minor league system, great starting rotation.
It will be interesting to see what the future holds for sports franchises and going public, but I expect only a small minority with powerful brands will look to have their shares available to the public. I think it would be pretty cool to buy your favorite franchise during a rebuild, only to watch the stock soar when they return to greatness.

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