How to Buy a Minor League Sports Franchise

There are many sports fans who dream of owning a professional sports franchise. A major league team in baseball, football, basketball or hockey may be out of the question to all but the most wildly successful business people, but owning a minor league sports franchise may prove to be profitable and much easier to do. It is certainly much more affordable.

Difficulty:

Moderately Challenging

Instructions

1. Determine which sport you will want to participate in as an owner. Baseball and hockey will provide you with most of the opportunities since both sports have thriving minor-league systems. Basketball's minor league, the NBDL, is much smaller and football's minor leagues are nearly non-existent. Football has semi-pro leagues for players who are not afforded any opportunities to play at the major-league level but just don't want to give up hope. The other sports' minor leagues are feeder systems to the major leagues.

2. Determine how much you want to spend. A minor-league hockey or low-level baseball franchise often costs less than $250,000, but that franchise fee is just the beginning. You will be responsible for paying salaries, stadium rental, insurance, equipment, transportation costs and advertising fees associated with your sport. High-level Triple AAA baseball teams -- the highest level of minor league teams -- may cost as much as $10 million.

3. Read trade papers and publications associated with your sports. This is where you will learn of buying opportunities for minor-league franchises. Publications like The Sporting News and The Hockey News will have an advertising section that may include franchises for sale. However, most of the information can be gleaned in stories written about various teams. Reading those stories may provide you with information about which teams may be for sale and how anxious the owner is to divest himself of his property.

4. Contact team owners directly. If you are interested in their team and you see a business opportunity, some owners may be willing to deal with you directly. Even if they are not ready to sell, if they see that you have a legitimate business plan and ideas on how to make the business succeed, they may put you in touch with other owners they know who are willing to sell their team.

5. Get in touch with sports brokerage firms that have been hired by businesses to find qualified buyers. This may be the step you need to get an opportunity to buy a sports franchise, much like you have always wanted to.

References

• Buying a minor league team
• Sports franchise broker