Sports are the favorite pastime of people around the world. For some professional sports teams there are decade’s long waiting lists for season tickets, as well as swarms of fan at the team stores and online shops to buy jerseys or other memorabilia bearing the symbol of their team. The global sports industry is estimated at $1.5 trillion a year. There is obviously a potential for large profit to be the made within this field. This makes owning a sports team a potentially highly lucrative business venture. Success may be achieved, provided that take the right steps. If you want to buy a sports team, there are some important steps that you need to take into account.
These include the following:
Choose a Team
The choice to buy a sports team is a decision that should be taken seriously. While being a passionate fan of the team may seem like an advantage, it may actually be a liability. Your decisions could be clouded when you have the jersey of that group inside your wardrobe. If your goal is to get a return on your investment, be careful to choose a team based on its business value, and not your personal feelings about the team.
Study the Market
You will need to review and assess the current markets for teams in that sport. Find out whether the fan base is solid or not, and the number of tickets that are sold every year. Also, you should consider if your team will be competing against another sports team in the nearby area. These are just some of those things that you must take into account if you want to buy sports team.
Understand the Restrictions of the Ownership
Ensure that you understand the guidelines of owning a team. There are some leagues that do not allow ownership based on the non-sports activities of the potential owner. Also, ownership in one team may prohibit ownership in another.
Review the Financials of the Team
Was the previous owner of that team able to generate revenue? This is just one of the questions that should be answered in this matter. You will have to find out if the current stadium was constructed recently and if there is any debt connected with it. Does the team lease the stadium, or own it outright? Often you will see team “sell” for relatively small amounts. This usually doesn’t tell the whole story, as the new ownership group often assumes the debt of the prior owners.
Learn About the Management in Place
The owner is one important piece of a successful sports team, however the administrative staff, current players, and support staff including trainers, doctors, and others all play significant roles in the success of the team. Understand the financial commitments necessary before you sign-on to buy a sports team.
Buy a Sports Team
These are just some of the major steps that you should take when you want to buy sports team.
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