Interested In Owning A Minor League Team? Prep With These Steps

As an investor always looking to expand and upgrade your portfolio, the possibility of minor sports team ownership could be attractive, especially if you're a fan.  The idea might not be as much of a pipe dream as you probably think right now; with good information and contacts, part-ownership or full ownership is something that could happen. Prep yourself for such an eventuality in these ways.

1. Get Financing

Of course, the major challenge for this kind of purchase is discovering how you'll afford it. You can amass a small group of investors personally known to you, for example. You might ask for a business loan to cover the costs, in which case you need to improve your financial status by paying off other bills and selling some assets. Once you've got funds in hand, you put yourself in a stronger position when you begin shopping for teams.

2. Discover Requirements

You may expect that the league you're hoping you'll buy into will ask some questions. However, it could be news to you that they will want more information about past financial issues, the industries in which you own businesses and other specific information. You need to obtain any documentation about what's required for league membership and follow through.

3. Get a Broker

Team owners are unlikely to place ads in their hometown newspaper looking for some buyers. Without being well-connected, you might not always get the latest gossip about who wants to sell and what teams may be changing owners. Seeking a broker who does these kinds of sports sales is vital. Their experience with the business and personal sides of these sales can not only give you the information you need about which teams could be open for you to acquire, but they may also be able to give you more personal information about the current owner, the players and relevant information you must consider.

4. Ask for Valuations

To protect yourself, you have to know that you're getting a good deal without being dazzled by the players you know and like. A franchise valuation is in order; in fact, a seller may have already ordered one. To be sure of objectivity, however, you might have your own done by a reputable service. Of particular interest should be the income that a team is producing season after season; is it enough to cover not only star players but anyone new you might bring onboard? You should also investigate contracts in place. You don't want to lose the best player you've got six months after you make the purchase.

After a sports franchise evaluation, getting a broker and doing some of the other work mentioned here, you'll be ready to be a new team owner. Keep asking for help and feedback to be a good one.