Investor Owned Expansion Team

Discussion in 'MLS: Expansion' started by Konrad, Apr 24, 2004.

  1. Konrad

    Konrad New Member

    Jul 6, 2001
    Atlanta, GA
    I wonder if there would be enough interest to get an expansion team going (let's say in NY) by issuing an IPO on the Stock Exchange. The funds raised could be used to acquire the Cosmos brand and provide enough cash flow to get things going. I find the idea of a investor owned team appealing. I'm not sure how the future earning potential of soccer in the US would reflect in the stock price and funds generated.
     
  2. Michael K.

    Michael K. Member

    Mar 3, 1999
    There or Thereabouts
    Nat'l Team:
    United States
    Publicly-traded sports teams = A Very Bad Idea.
     
  3. worldfootballgenius

    New York Red Bulls
    United States
    Jul 9, 2003
    Brooklyn, NY
    Club:
    FC Bayern München
    Nat'l Team:
    United States
    Yeah, just look at Manchester United. They're so poor.
     
  4. Wallydrag

    Wallydrag BigSoccer Supporter

    Jul 24, 2002
    Oklahoma City
    Club:
    FC Dallas
    Nat'l Team:
    United States
    Man U is an exception. For every Man U there are a dozen other clubs that went public and busted.

    Man U can do it because they're not just a club, they're a product with world-wide appeal. An MLS club is far, far from that.
     
  5. Go2NY

    Go2NY New Member

    Feb 19, 2000
    Croton-on-Hudson NY
    Kondrad


    What do your financials look like?

    Who will issue the IPO

    Who are your key investors?

    What's the return on investment?

    Thanks
     
  6. Michael K.

    Michael K. Member

    Mar 3, 1999
    There or Thereabouts
    Nat'l Team:
    United States
    Just look at QPR, Tottenham, Lazio, Millwall etc., etc. As another poster aptly noted, Man Utd is one hell of an exception.
     
  7. Bonji

    Bonji Moderator

    Feb 4, 2003
    Denver, Colorado
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    The transparency required by the SEC would not be well liked by MLS. In addition the typical American investor is no longer big on companies with negative earnings.

    You could try to get a large group of private investors together in a private offering, but the SEC has its rules about that as well.

    For the Cosmos to come back it will take one owner/group. Nothing public will happen in MLS for a long time to come.
     
  8. dl

    dl New Member

    Sep 16, 2000
    Cambridge, MA
    I believe that MLS has said that they will not take a group of investors as an owner/operator. I think it was after the initial DC United group kind of fell apart that they proclaimed their desire to have individual owners (at least for the time being).
     

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