| Paul Allen and Jerry Jones are some of the notable | | | | start up cost. Starting a new team is a very long and |
| people who own a professional sports team. The | | | | tedious process. You also need to meet the |
| highest sold to date is about $700 million dollars which | | | | requirement of the league. You also need to prove |
| is quite high for anyone who wants to own a team | | | | that you can support the team. Finding the right deal |
| franchise. If you dream of investing in a sport team | | | | can take time because it involves a lot of money. |
| and watching games through the owner's box, there | | | | You would need the help of a consultant and lawyer |
| are minor and independent leagues available as an | | | | on this matter. There are some organizations that can |
| alternative. They could be purchased through | | | | help investors to learn about franchise management. |
| partnership so it is easy on the pockets. | | | | Remember that franchising a sports team is an |
| Minor league teams are not that cheap according to | | | | investment done for the love sports rather than |
| Minor League Baseball Association. They could range | | | | earning money from it. When you decide to purchase |
| from $650,000 to $10 million. They can profit from | | | | a team, you should have a healthy interest for it. Avoid |
| about 5 to 10 percent annually. There are individuals | | | | purchasing a team where you are emotionally |
| who purchase a franchise and there are some who | | | | attached. This not ideal and you can end up paying |
| go together forming a limited liability company. This is | | | | more. In purchasing sports franchise, it requires due |
| where sports investment funds come into picture. | | | | diligence. There is a need to review contracts and |
| There are investors who opt to put money in teams | | | | leases. |
| where they want to be involved however there are | | | | As an advice, look into the market and the history of |
| some that form a group to purchase a sports team. In | | | | the team. This can help you see how can you |
| any case, there is the thing as majority team owner. | | | | organize and manage the team. Take note that there |
| This like the concept of stock company where there | | | | are expenses that is associated with team ownership. |
| are shares. The team owner is responsible for | | | | This is beyond the cost of buying the team. Another |
| overseeing every activity and some are even | | | | thing to consider is the affiliation agreement where in |
| hands-on. | | | | you have to pay NHL team for players. Remember |
| Aside from purchasing an existing league, you can opt | | | | that a team for sale is not classified. You need to |
| to start a new franchise. Take note that it involves | | | | network with people in the industry for you to learn |
| start up cost like recruitment, setting up new office and | | | | about it. There are risks and rewards that are involved |
| marketing. If you go for an existing team, all you need | | | | in purchasing franchise of a team. |
| is to pay money to the owner and there will be no | | | | |