1. Public Ownership of
Sports Franchises
: Investment, Novelty, or Fraud?
Eugene J. Stroz, Jr;

2. Introduction
• What is Public ownership?
• Advantages
• Disadvantages
• Investment Bank

3. The Green Bay Packers
• The first offering stock 1923.
• Stock price ・・・ 5$ → 200$
• No dividends & minimal voting rights
• No benefits besides receiving a
certificate & annual meeting

4. Boston Celtics
• 1986 only NBA team to sell shares in
a public offering
• Different from Packers:
1.Dividends
2.Sell shares
3.No voting right
4.No limitation in use of proceeds

5. The Florida Panthers
• Differences: A traditional Investment
1.Minimum purchase of 100 shares
2.Diversified operation
3.Attract investors rather than fans
• Similarities
1.No dividends
2.Restricted share holder rights

6. The Cleveland Indians
• 1998 Indians offered stocks to public owner
• Similarities
1.No dividends
2.Minimal voting rights
3.Proceeds in principle owner pocket
• Differences
1.Indirect investment

7. Pros & Cons of Public ownership
•Pros
1.Better than “holding a city hostage”
2.Fans can be a part of the team
3.Full Disclosure to protect buyer

8. •Cons
1.No physical invest value
2.Fans are exploited for their money.
3.The lack of balance
between owner & share holders
“The fundamental problem with public ownership of sport
franchises lies not in its viability (..) but rather with its
implementation, its impurity, and its startling lack of synergy”

9. Investment, Novelty, or Fraud
• Different from regular investment
• Certificate as a novelty item, social
personal value
• Where does investors money go?