Why More NFL, MLB And NBA Teams Are Not Publicly Traded

Only a handful of sports teams including the Major League Baseball team, Atlanta Braves, are public in the U.S. That's mainly due to strict league rules, tax advantages of private ownership and the financial scrutiny that comes with public disclosure. Instead, teams are increasingly turning to private equity and limited partnerships to raise capital, prompting the question of whether public ownership could ever become a thing in the future.

Chapters:
00:00 Introduction
1:31 Publicly traded teams
04:00 Pros and cons
08:29 The future of going IPO

Produced and Edited by: Darren Geeter
Animation: Jason Reginato, Josh Kalven
Senior Managing Producer: Tala Hadavi
Additional Footage: Getty Images
Additional Sources: ESPN, Manchester United, Premier League, The Independent, NBA, NFL, MLB

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Why More NFL, MLB And NBA Teams Are Not Publicly Traded

[wdeey]

Jordan never signed a high price free agent during his Hornets ownership. They never won, but the team made hella money. Publicly traded sports teams are a conflict of interest

[juiceman_]

There’s an error on the Ravens 2004 purchase price

[sandalphoncpu]

“Sports are less about pure profits and more about prestige.”
Tell that to the Glazers on Man Utd

[quantcook]

Owning sports team to me is like owning a pokemon card

[isaacfrohlich]

2:13 In 2024, Rogers acquired an additional* 37.5% stake of MLSE in addition to their existing 37.5% stake that they've owned since 2011 for a total of 75%.

[usernamegenerico]

Dave Kaval is a part of the regime that ran the Athletics out of where they belonged, in Oakland. I would have rather had someone else been interviewed.

[LearnToWin]

If I’m investing in a professional sports team, I’m investing in a sports team that wants to win long term and wants to win championships. I don’t care about anything else other than building a winning sports team. Winning is everything.

Real talk 💯

[JeffreyGoddin]

So, the drive to quarterly earnings can have negative consequences? Who knew.

[pureum]

Hard for sports team to go public because different incentives between the owner and team vs. shareholders. Also, it's really hard to grow a great franchise, players retire, game rules change, people get less interested, ...really hard to scale.

[emikomina]

have they tried nickel and diming their loyal fanbase so they can be even more profitable?

[kiroolioneaver]

The Australia Football League (the most profitable sports league in Australia) has no private ownership and the overwhelming majority of the 18 clubs are member owned.

[Mattch]

0:32 passing the scissors by the handle is an elementary school no no

[Wasnt-]

the true goal of owning a sport's teams are the tax benefits that comes right after immediately by buying them 60% of their valuation is deducted to their tax obligations

then there's other expenses that the team needs salaries maintenances and players contracts who's no less than $1 million but thanks to multiple loopholes a team can use under a contract teams can pay players not even 50% of the worth prize but regardless those contract would be tax deductible for the owners

[chrisbunka]

I wonder what Buffett's opinion is about buying a major sports team.

[eiedzyk]

Tottenham is a privately owned team solely for profit. Were somehow the 3rd most profitable sports team in the world but no recent success to show for it. We were one of the most successful team in English history, until we got new owners in 2001

[kjorlaug]

Because if they aren't, they have to disclose to the shareholders their costs, expenses, and profits.

[PresleyEducationServices]

Can you guys speak up when you’re recording these videos? The drops in tone make it really challenging to hear the first time. Weirdest thing is all the narrators have the same issue. Please fix this. Thank you

[andrewsouthward]

Liverpool is the most successful club in England not Manchester United

[warmike]

Are there municipally owned sports teams in the US? That's a common practice in other parts of the world.

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