Tuesday, December 6, 2011

Should I Buy Green Bay Packers Stock?

Today begins what will be the fifth stock sale in the Green Bay Packers ninety-two year storied franchise. For $250 (plus $25 shipping and handling) you can own a piece of an NFL team. I won't lie, when I first heard about this, I was pretty excited. You mean, I can own a piece of the Green Bay Packers...whose quarterback is MY quarterback in fantasy football?? Well, yes, anyone with a US address can own a piece of the team, but you should know a few things before you pull the trigger.


What perks come with ownership?
     ~ A nice stock certificate on fancy paper
     ~ The ability to attend annual shareholder meetings in
        Wisconsin
     ~ Access to purchase a special line of shareholder
        apparel


Things you cannot do with your new-found ownership.
     ~ Sell it or transfer it to anyone not directly related to you
     ~ Collect dividends or distributions of any form
     ~ Get special ticket deals or better access to game tickets
     ~ Negotiate any free-agent deals in the works
     ~ Propose any trades or assist in the upcoming NFL draft


All in all, you get the satisfaction of knowing you supported the Packers and you get a fancy piece of paper to prove it. The Packers will use these new funds to help offset the cost of renovations to Lambeau Field. By 2013, the plans call for an additional 6,700 seats, new HD video boards, and a new entrance. If you are a Packer fan, that just might be an investment worth making. Invest well!


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2 comments:

  1. I don't get how this is "ownership" if you don't share in the profits. This is a donation, not an piece of "ownership." Besides, don't most teams pay for stadium upgrades through revenues, retained earnings or bank loans?

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  2. It actually is ownership, though very different from that of what we usually think of as stock in a public company. From what I understand, the Packers legally operate as a publicly owned non-profit and are the only team in the league organized this way. The original purpose of this setup was to permanently tie the team to the city of Green Bay and prevent its move elsewhere. And yes, capital improvements for most stadiums are financed with bank loans and paid back out of operating revenue. The Lambeau Field upgrades are estimated to cost $143 million, and this stock offering is estimated to raise anywhere from $22-62.5 million. The balance of capital needed will come in the form of a more typical loan. It appears the goal is to capitalize on fan loyalty and excitement, in order to minimize the amount of debt needed for the expansion. Not a bad way to allow fans to feel more involved and connected with their team...and raise a large sum of money at the same time.

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