One may not initially associate sports franchises with issuing stocks, but Green Bay Packers are doing exactly that to finance the addition of seats at Lambeau Field. A publicly owned corporation since 1923, the Packers had over 110,000 shareholders (larger than the population of Green Bay) owning 4.75 million shares before the most recent sale on Tuesday. Although deficient of many advantages associated with traditional stocks, the Packers stocks hold more important sentimental values for the stakeholders.
Among the disadvantages, these stocks receive zero dividend and can only be transferred to family members. As a result, there is no re-sale value and doesn't even help the shareholders gain an advantage on the long waiting list for season tickets. NFL rules also prohibit the shareholders from betting on games. The only practical perks for the shareholders are voting rights and the rights to attend annual stockholder meeting in the summer.
Yet despite these restrictions, Packers fans rushed to own part of the team when the offering began on Tuesday. During the first 11 minutes of the offering, 1600 shares were sold. Packers hope to raise $22 worth of stocks before the offers closes next February. The greatest value is the claim of partially owning the franchise. It's this sentimental value, not monetary incentives, that motivates the fans to "invest" money into their team, and the benefits in the form of larger stadium, will help to benefit the fans themselves.
Green Bay is unique among all North American professional sports franchises. With a population of only around 300,000 in the metropolitan area, it by far has the smallest local fan-base. Nevertheless, Green Bay Packers have remained loyal to the Wisconsin city, over 100 miles north of Milwaukee, since its founding. Public ownership has helped that trend, but certainly the success of the Packers has allowed such passion. The Packers have won more Super Bowls than any other franchises, most recently in 2011. With a perfect 12-0 record heading to this week, it is aiming to go back where they were.
Similar small-town professional franchises have not fared as well. NBA's Sacramento Kings recently considered moving to Anaheim to provide more financial stability for the struggling team. While ideas were never proposed, it seems unlikely that Kings, which has fared poorly for most of the latter half of the past decade, could've generated much revenue from stock offerings.
Certainly, America continues to embrace its professional sports franchises, and most teams have very loyal fan-base in their hometown. Even in Cleveland, where teams haven't fared well in recent years, loyal fans bought their personalized bricks at the Heritage Park in Progressive Field, to be part of the history of the Cleveland Indians. In the turn of events this year that saw labor strikes in NFL and NBA, teams could consider selling part of the ownership to the devoted fan-base. It would strengthen the stability and presence of the team in the area while sustaining financial growth.
Avid sports fans flock to stadiums or ESPN to follow their passion, but at the end of the day, money and sports can't be separated. Franchises operate to maintain financial growth. Fans pay to see their teams succeed. Offering partial ownership of the teams to the public could be the link between the two sides.
Sources:
