Which Sports Teams Are Publicly Traded?
Discover which sports organizations are publicly traded, understand the investment process, and their unique financial operations.
A publicly traded entity is a business whose ownership is distributed among shareholders through shares of stock that can be bought and sold on a stock exchange. This allows individuals to invest in a company’s future by purchasing a small portion of its ownership. While most sports teams are privately held, specific circumstances allow certain sports organizations to become publicly traded, offering a distinct investment avenue.
Publicly Traded Sports Organizations
While most individual sports teams are privately owned, several sports organizations or their parent companies are publicly traded. The Atlanta Braves, a Major League Baseball team, are owned by Atlanta Braves Holdings, Inc. (BATRA), which trades on Nasdaq and also manages mixed-use development projects associated with the team. Madison Square Garden Sports Corp. (MSGS), listed on the NYSE, owns both the New York Knicks and the New York Rangers. This structure allows investors to gain exposure to multiple teams under a single corporate umbrella.
International football (soccer) clubs also feature among publicly traded entities. Manchester United plc (MANU), a prominent English football club, is traded on the NYSE. Borussia Dortmund, a German football club, has shares available on the German stock exchange under the ticker BVB.
Some publicly traded communications companies also own sports teams. Rogers Communications Inc. (RCI), a Canadian telecommunications provider, owns the Toronto Blue Jays, Toronto Maple Leafs, and Toronto Raptors. Liberty Media, trading on Nasdaq under symbols like FWONA and FWONK, is the parent company for Formula 1 racing. The TKO Group (TKO) owns major combat sports properties: the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE).
The Green Bay Packers are publicly owned, having offered shares to fans periodically. However, their shares do not trade on a stock exchange, meaning they are not publicly traded in the traditional sense. This highlights that direct ownership of a team’s stock is relatively rare, with most accessible investments being through a larger corporate structure that encompasses the team.
The Investment Process for Sports Entities
Investing in publicly traded sports organizations is a process similar to investing in any other public company. The first step involves opening a brokerage account with a registered financial institution. These accounts can be established online and require personal identification verification and completion of application forms. Once approved, the account must be funded, typically through electronic transfers from a bank account.
After funding, an investor researches the specific ticker symbols of the desired publicly traded sports entities. For example, to invest in the Atlanta Braves, one would look for BATRA, or MSGS for the New York Knicks and Rangers. The investor then places a buy order through their brokerage platform.
Buy orders can be executed as market orders, purchasing shares at the best available current price, or as limit orders, specifying a maximum price the investor is willing to pay. Once the order is placed and executed, the shares settle, meaning ownership officially transfers. This investment provides ownership in the company’s stock, not direct ownership of the team’s physical assets or operational control.
Business Model of Publicly Traded Sports Teams
The business model of sports entities under a publicly traded corporate structure relies on diverse revenue streams and operating expenses. A primary source of income is media rights, encompassing broadcasting deals that generate substantial revenue for leagues and teams. These agreements often involve long-term contracts, providing a stable financial foundation.
Another significant revenue stream comes from ticketing and gate receipts, including sales of season tickets, individual game tickets, and premium seating options. Revenue is also derived from in-stadium sales like concessions and merchandise. Many teams also benefit from sponsorship deals, ranging from stadium naming rights to corporate partnerships.
Beyond game-day activities, publicly traded sports organizations often generate revenue from broader stadium or arena operations, hosting concerts and other entertainment events. Some leagues employ a “pooling and sharing” model for certain revenues, where income is collected at the league level and then distributed among teams based on a predetermined formula. This collective approach can provide a baseline of revenue stability for teams.
On the expense side, player salaries represent the largest component of team expenditures, including direct salaries and associated benefits. Operational costs also account for a substantial portion of expenses, covering stadium maintenance, team travel, and general administrative overhead. Marketing and promotional activities also contribute to the overall cost structure, aimed at maintaining fan engagement and expanding the team’s brand.
Valuation factors for publicly traded sports entities extend beyond traditional financial metrics. Brand strength and the size of the fan base are intangible assets that contribute to a team’s market value. The structure of the league in which a team operates, including revenue sharing agreements and competitive balance mechanisms, also influences its financial viability. The market size and potential for future revenue growth, particularly from evolving media deals, are also considered by investors.
Valuation often incorporates the “precedent transactions” method. This approach analyzes the prices paid in past sales of similar teams to determine current market value. While profitability is a factor, the appreciation in asset value over time, driven by these unique market dynamics, can also be a significant consideration for owners and investors.