Owning a professional football or baseball team is well out of reach for the average investor, but owning a piece of one isn’t. Publicly traded sports teams offer investors exposure to the world of alternative investments without requiring you to bring billions to the table.
If you have a brokerage account you may be able to invest through the wide world of sports. Here’s a look at how it works to invest in publicly traded sports teams.
Key Points
• Investing in publicly traded sports teams allows individuals to engage with their passions and diversify their portfolios through publicly traded teams.
• U.S. sports leagues like the NBA, NHL, and MLB have publicly traded teams, while international options include Manchester United and Borussia Dortmund.
• Key factors to consider before investing in sports teams include team management, ownership structure, financials, and performance record.
• Risks include stock price fluctuations, potential privatization, and significant debt loads affecting financial stability.
• Investment strategies may include buying shares through brokerages or investing in sports-focused ETFs for diversified exposure.
Understanding Sports Team Ownership Structures
Sports team ownership structures vary by organization and franchise. Major and minor league teams can be owned by:
• A single individual
• A family or family trust
• Corporations
• Limited liability companies (LLCs)
• Partnerships
• Private equity firms
Some teams have mixed ownership, meaning there are multiple owners, which can include a mix of individuals or entities. The controlling owner may be an individual or family who owns a majority share, with the rest distributed among other owners that were interested in investing.
There may be limits on what percentage of ownership an individual or entity can have in such a structure. For example, the National Football League (NFL) approved a vote in 2024 to allow private equity funds to buy stakes in teams. Private equity is capped at 10% of total ownership and controlling owners must have at least 30% ownership.
What Is a Publicly Traded Sports Team?
Most sports teams are privately owned following one of the ownership structures listed previously. Publicly traded sports teams are teams that are owned by corporations that may or may not make their shares available to trade on stock exchanges.
Current Publicly Traded Teams
A handful of professional sports teams are publicly traded. If you’re interested in how to invest in sports teams here are the companies you might choose from.
• Atlanta Braves. The Braves baseball team is owned by Atlanta Braves Holdings, Inc. (BATRA), which also operates mixed-use development projects. BATRA is traded on the Nasdaq Select Global Market.
• Toronto Blue Jays. Rogers Communications (RCI) owns the Blue Jays and is a leading provider of wireless service in Canada. RCI is traded on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).
• New York Knicks. Madison Square Garden Sports Corp. (MSGS) owns and operates the New York Knicks. Shares are traded on the NYSE.
• New York Rangers. MSGS also owns and operates the New York Rangers hockey team.
• Manchester United. The Manchester United Football Club is owned by Manchester United plc. The stock trades on the NYSE using the ticker symbol MANU.
• Borussia Dortmund. Borussia Dortmund is a publicly traded sports team that trades on the German stock exchange. Its ticker symbol is BVB.
The Green Bay Packers, a professional football team playing in the NFL, are often included in the discussion about publicly traded sports teams, too. But while the team is publicly owned, it is not publicly traded. The team has, in the past, offered stock sales, and is a nonprofit organization.
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Strategies for Investing in Sports Franchises
There are several ways to invest in sports teams. The simplest path may be investing in sports by purchasing shares through a brokerage.
You’ll need to open a brokerage account if you don’t have one already, and deposit funds to trade. Once your account is set up you can buy and sell shares of publicly traded sports teams the way you would any other stock. Some brokerages also offer access to alternative investment funds, such as commodities or currencies.
If you don’t want to tie up all of your investment dollars in a single team, sports-focused ETFs are another option. These are thematic ETFs that allow investors to own a basket of investments in a single fund. Funds may be focused on:
• Sports betting
• Digital sports entertainment, including esports and gaming
• Sports broadcasting
• Sports and athletic technology, such as wearables
• Energy drinks or foods that are marketed to athletes
Real estate investment trusts (REITs) are another opportunity to invest in sports, albeit not necessarily sports teams per se. REITs own and operate real estate properties, which can include sports stadiums, arenas, and training facilities. Investing in sports REITs can diversify your portfolio while generating passive income through dividends.
Private equity may also be an option, depending on your situation. Private equity involves investment in sports companies that are not publicly traded. Investing in private companies can be lucrative but the barrier to entry is often high, as you may need to be an accredited investor to qualify.
SEC guidelines consider you to be an accredited investor if you:
• Have a net worth greater than $1 million, excluding the value of your primary residence
• Earned $200,000 or more ($300,000 with a spouse or partner) for the previous two years and expect the same level of income for the current year.
If you don’t meet those requirements there’s another option. You could invest in private equity ETFs that have a sports focus. This alt investment guide offers a closer look at how nontraditional assets like private equity work.
Risks and Challenges in Sports Team Investing
Investing in sports has risks like any other investment. Weighing them carefully can help you decide if it makes sense to invest with sports.
Here are some of the biggest challenges and associated risks associated with investing in sports teams:
• Stock prices of publicly traded sports teams (or their parent organizations) can fluctuate widely, based on how well the team performs.
• A team that’s publicly traded today may not be tomorrow if the team is sold to a new owner who decides to make it private.
• Sports teams can generate huge profits but they can also carry significant debt loads, which can affect their financial health and stability.
• Investing in sports REITs can generate passive income but those investments often lack liquidity.
• Private equity often has higher barriers to entry and may carry more risk than other sports investments.
Before investing in sports it’s helpful to review your current asset allocation and risk tolerance. That can help you decide how much of your portfolio to allocate to sports investments.
Recommended: Alternative Investment Definition
The Takeaway
Investing in sports is an opportunity to put your money where your passions are and diversify your portfolio. Comparing different investment paths can help you decide which one makes the most sense for you. And remember that if you’re interested in trading sports stocks, it’s easy to open a brokerage account and start investing online.
Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.
FAQ
Which sports leagues have publicly traded teams?
In the U.S., the NBA, NHL, and MLB all have at least one publicly traded sports team on the stock market. While the Green Bay Packers are publicly owned and offer periodic sales of shares, they are not publicly traded.
Can I invest in international sports teams?
There are at least two international sports teams that are publicly traded. They are the Manchester United Football Club and Borussia Dortmund, a German football club and sports club.
What factors should I consider before investing in a sports team?
Some of the most important factors to consider before you invest in sports teams are the team’s management, its ownership structure, and its financials. It’s also wise to look at the team’s performance record, as that can influence how it’s valued at any given point in time.
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