Franchise Brokerage
Buyers:
- Cosmos Sports has an unparalleled network of sports organizations that we work with. Often times the best opportunities are not listed publically.
- A very common mistake for those interested in purchasing
a sports team is to approach the league directly. The league
has a vested interest in
(a) maximizing franchise value and
(b) limiting movement and sales
As a result, speaking with leagues directly is rarely advisable as opportunities will be overpriced, and or certain teams may be presented as unavailable when in fact they are for sale.
While sports teams should operate more similar to real estate, where a broker(s) is able to negotiate the best arrangement for parties involved, typically prospective buyers have pursued either the league directly or approach teams on an individual basis.
Cosmos Sports has intimate knowledge of:
- True Franchise Values
- Prospective Operational Costs
- Market Viability/Conditions
- Lease Conditions and Opportunities
- Optimal Business Models
- Marketing Plans
- Sales Plans
- Etc...
Ultimately, a phone call to Cosmos Sports is your safest place to start if considering purchasing a sport franchise.
Sellers:
There are many difficulties with attempting to sell your sports franchise;
first and foremost maintaining operations and confidentiality while trying to
conduct a sale.
There are several challenges with attempting a private sale:
1. Confidentiality Issues
2. Rumours of Sale can impact current business
3. Rumours of Sale may decrease value
4. Difficulty in seeking buyers
5. Limited knowledge/capacity to seek buyers.
6. Personal Bias (difficulty in objectivity)
Similarly there are several challenges with seeking the league
to help in a sale:
1. Lack of Priority for League
2. League tends to overprice team; may not forward low bidders.
3. League may prevent you from speaking with 'relocation'
buyers.
4. League may have limited knowledge of your market
Clearly, if you choose to sell your team, seeking a
professional is your most prudent course of action and a call to
Cosmos Sports is a great place to start.
Contact:
Cary Kaplan
905-564-4660 ext. 233
carykaplan@aol.com