Investing in MLS

Discussion in 'Finance, Investing & Economy' started by USvsIRELAND, Jul 30, 2008.

  1. USvsIRELAND

    USvsIRELAND Member+

    Jul 19, 2004
    ATL
    Yo.

    So I've been working all this year and summer so I have some money to invest.

    And I want to invest some in MLS/SUM/AEG?

    Good idea? Bad?

    I don't know much about the stock market.
     
  2. Matt in the Hat

    Matt in the Hat Moderator
    Staff Member

    Sep 21, 2002
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    MLS and SUM aren't publically traded. Which is too bad. I've written a couple of letters to Garber about that issue. A league that consistenly cries poverty and they ignore this option. Dumb.
     
  3. bostonsoccermdl

    bostonsoccermdl Moderator
    Staff Member

    Apr 3, 2002
    Denver, CO
    I believe once you become publically traded, you need to really "open up" your wheeling and dealing and open up the books for criticism from wallstreet.

    This type of behavior is pretty much the opposite of what MLS has been about it seems.

    Wouldnt be surprised to see it happen a few years down the line though, once they have turned the corner financially (MLS that it.)
     
  4. Wingtips1

    Wingtips1 Member+

    May 3, 2004
    02116
    Club:
    Liverpool FC
    you'll never see the league/governing body go public. just as you won't see the NFL as a public company anytime soon.
     
  5. Matt in the Hat

    Matt in the Hat Moderator
    Staff Member

    Sep 21, 2002
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    Two different structures. The NFL is an affilitation of 32 different companies. MLS is a company with 13 franchises. But you do have a publically owned NFL franchise. So I don't really get your point.

    I'm just saying a token amount with limited voting rights. Let's say 10% of the outstanding ownership should be stock based.
     
  6. Footer Phooter

    Jul 23, 2000
    Falls Church, VA
    I don't see that happening any time soon. If one of the teams went public (even with only a small % of the outstanding shares traded), there would still be a lot of public disclosure of the finances that MLS/SUM/Uncle Phil doesn't want at the moment.

    Now having said that, if DCU went public, you better believe that I'd pick up a few shares.
     
  7. USvsIRELAND

    USvsIRELAND Member+

    Jul 19, 2004
    ATL
    This is the most action this forum has seen in a while.
     
  8. Elvis Minaya

    Elvis Minaya Member

    Sep 22, 2008
    Valparaiso, Chile
    Club:
    New York Red Bulls
    Nat'l Team:
    Chile
    MLS has the potential to grow. I would say in about 12 years.
     
  9. Felixx219

    Felixx219 BigSoccer Supporter

    Nov 8, 2004
    Kansas City, MO
    Club:
    Kansas City Wizards
    Nat'l Team:
    United States
    If you are a fan of the MLS, you do not want the MLS to become publicly traded. Publicly traded companies work in the best interest of their shareholders. As fans, we want the league working in the best interest of the fans, players, and teams. If they become publicly traded, that doesnt happen and the quality of the league declines due to the need to constantly cut cost and please their shareholders.
     
  10. djaeb2000

    djaeb2000 Member

    Jun 6, 2000
    ~~~Arsonists~~~
    Club:
    AFC Ajax
    Nat'l Team:
    Netherlands
    I think that if an individual team went public, fans would buy just to say that they own their team.

    It works for the Packers...
     
  11. ceezmad

    ceezmad Member+

    Mar 4, 2010
    Chicago
    Club:
    Chicago Red Stars
    Nat'l Team:
    United States
    Isn't Barcelona a public company?

    The NFL does not want to open up their books to the public, Green bad does, but no other team in the league does that, not in the NFL, NBA, NHL, I do not know about MLB.

    I would love to see the tax returns from the franchise owners.
     
  12. Alex_K

    Alex_K Member+

    Mar 23, 2002
    Braunschweig, Germany
    Club:
    Eintracht Braunschweig
    Nat'l Team:
    Bhutan
    No, they are a club, which is something completely different. They are probably a non-profit organization too (I don't know much about Spanish club law, but clubs in Germany, including all Bundesliga clubs, are).
     
  13. Matt in the Hat

    Matt in the Hat Moderator
    Staff Member

    Sep 21, 2002
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    It works for the Packers because of revenue sharing from the Giants and the Bears. Otherwise they would have moved or folded by the 70's
     
  14. djaeb2000

    djaeb2000 Member

    Jun 6, 2000
    ~~~Arsonists~~~
    Club:
    AFC Ajax
    Nat'l Team:
    Netherlands
    And there is revenue sharing in MLS from what we know right?
     
  15. Matt in the Hat

    Matt in the Hat Moderator
    Staff Member

    Sep 21, 2002
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    By it's nature as a single entity, yes.
     
  16. djaeb2000

    djaeb2000 Member

    Jun 6, 2000
    ~~~Arsonists~~~
    Club:
    AFC Ajax
    Nat'l Team:
    Netherlands
    Ok then, why wouldn't it work for MLS? They'd still make money from league sponsors, stadium things, and there stock.
     
  17. Matt in the Hat

    Matt in the Hat Moderator
    Staff Member

    Sep 21, 2002
    Brooklyn
    Club:
    New York Red Bulls
    Nat'l Team:
    United States
    Because they are an LLC
     
  18. asdf2

    asdf2 Member+

    Oct 11, 2004
    San Francisco
    Major tax issues. Yet another reason it will never happen.
     
  19. the shelts

    the shelts Member+

    Jun 30, 2005
    Providence RI
    Club:
    Nottingham Forest FC
    I would highly doubt that a league (or team) is going to go public anytime soon.

    By going public you need to disclose material events that effect the financial viability of of the league/club.

    Some who have in the past.......

    Symbol ABKB - The (new) ABA basketball league, an awful ownership and numerous lawsuits, all disclosed to the SEC and drove the price down

    Symbol PRED - The Orlando Predators arena football league team. This was then bought by another group and retitled FBLQ. Currently a penny share despite being a resonably good team and business.

    I could go on......the USBL, Manchester United and Boston Celtics all had shares at one point (the USBL still does) but the problem is you turn game managment over to 'investors' who want real results on paper....ie $$$.


    Most viable business owners who invest in pro sports will want to buy the team for one dollar, spend about five dollars running it for 5 years and sell it for 15 dollars. Its not a year after year money generating business when formed as a true publically traded entity.

    Also LLC is for small to medium sized business'. If you see a large corp running around as an LLC that is a red flag and a warning sign about the size of Texas. In fact, the Pyongyang May Day parade is the only other place with more red flags...................just saying.

    If you are going to invest real money in stock market, remember you are only buying what someone else has
    1/ made a profit and getting out
    2 abandoning ship
     
  20. tomreel555

    tomreel555 New Member

    Aug 23, 2010
    Club:
    Toronto FC
    Nat'l Team:
    Canada
    Why would MLS want people investing in it? There is a certain total of revenue they can make from ticket sales, tv, etc. - why share that with external shareholders?

    Unless you mean it gives them the capital to go ahead and spend more to bring in better talent to then drive revenues that way ... well, there is a cap, so that is not an option.

    Also, most owners in MLS are considerably wealthy anyway and could do so if they wanted. Clearly MLS doesn't not believe in the spend tons to make more vision and prefer slow growth.
     

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