By Rebecca Meneray | February 7, 2017Reading Time: 3 minutes
While this process may appear on the surface as neing complex and multi-facted, the Cosmos staff has broken it down into a step-by-step guide. While this scratches the surface of all the intricacies associated with purchasing a team, it does highlight some of the most important considerations in the process including financial assessment, marketability analysis, as well as understanding the rules/regulations that should be followed. In addition, while it is understood that there is a number of these steps that can be executed without substantial assistance, the speed and thoroughness of the process is typically benefited by 3rd party input and direction.
If funds are readily accessible and the above steps have been completed, then move forward with legal transfer of ownership processes.
If additional funds are required, find potential co-owners to participate in an ownership buy.
Even with all these considerations being taken under advisement, there are still 3 important things to keep in mind as you move towards your investment:
Particularly amongst the most well-known, there will be a restrictive number of options for buyers at any given moment. Thus, anyone engaged in the process must be prepared to act quickly and be willing/able to navigate substantial competition (particularly in the financial arena).
This speaks primarily in regards to rules/regulations about team ownership. These factors often come into play early on in the process (i.e. transfer of ownership policies) and therefore must be understood in full prior to any action being taken. It is certainly not ideal to engage in the process only to get held up by red tape right before you close the deal. Remember, the league and its policies are as much a part of the process as you and the team you’re seeking to purchase!
On the surface, purchasing a team may draw parallels to simply buying any other type of business. However, it is crucial to recognize that sports teams are a unique beast, often filled with history and pride. Ultimately, it should be perceived as a buy-in to not just the sport itself, but the fans, the sponsors, the athletes, the community and more. To purchase a team is to demonstrate your belief in its viability and success that can only occur as a result of stakeholders both big and small.