A century ago in 1923, the Green Bay Packers sold their first stock to raise funds, pioneering public ownership in sports. But despite several subsequent stock sales, the Packers’ unusual nonprofit structure means shares cannot be freely traded or profited from. While Green Bay blazed a trail, modern sports investment remained an ultra-rich domain.

However, recent deals suggest the exclusivity of sports ownership is eroding. With teams, leagues, and owners seeking fresh capital for growth or exits, they are embracing public markets and new investor classes. Fans can now directly own stakes in favorite franchises.

The merger of WWE and UFC into TKO Group Holdings exemplifies the bullish case of sports’ enduring appeal. TKO will be a “pure-play sports company” at the “epicenter of live sports and entertainment,” says President Mark Shapiro. Bank of America analysts agree, noting “scarcity value for premium IP companies” like TKO with “robust year-round programming.”

Most prominently, John Malone’s Liberty Media spun its Atlanta Braves MLB franchise into a standalone stock. Previously, investors could only buy Liberty stock, but now they can directly own the playoff-bound Braves. Liberty also launched a Formula 1 racing tracking stock, unlocking its value.

While some teams like Manchester United and the Knicks have been public for years, this wave of listings suggests owners want to capitalize on fan demand for equity. Rights deals and championship winds are sharing opportunities. But strong oversight still matters — the Knicks’ lower valuation than the Braves reflects concerns on maximizing potential.

The desire for sports equity is spreading to private markets too. The NFL is exploring expanded ownership policies, including private capital participation. This could allow entities like private equity, pension funds, and public companies to own minority stakes.

Goldman Sachs just launched a sports investment division for clients seeking franchise stakes. Team owners can tap huge new pockets of capital rather than relying solely on billionaire backers.

Consider Vince McMahon, who built the WWE over decades. He registered $2.8 billion of TKO stock for potential sale, unlocking value for himself but also offering millions of fans the chance to literally buy into their passion.

The Growing Premium of Live Sports

This sports investment boom is fueled by the soaring value of media rights and live sports’ scarcity. As entertainment fragments, sports remains must-see live programming, driving up broadcast rights. And fans passionately engage with favorite teams.

The NFL earns $110 billion over 11 years from just its latest rights deals with media partners. Leagues are seeing deals double or triple in size. This revenue gets shared with team owners, making franchises exponentially more valuable.

Sports betting’s legalization also created new revenue streams. And merchandising, sponsorships, and ticket sales remain robust. Owning top franchises is now a license to print money.

Media giants are increasingly defined by live sports offerings. Disney’s ESPN leads the space. Warner Bros. Discovery has TNT and the NHL. Paramount gained Champions League soccer. Apple is bidding on NFL packages. This fierce competition will further inflate rights values.

For investors and private capital, buying into this inevitable growth via team and league equity is appealing. While valuations are stretched, scarcity creates a deep and growing market.

Expanding the Circle of Ownership

With surging valuations limiting buyers, team owners are embracing alternative capital to expand their ownership groups. Selling minority equity stakes raises funds while maintaining control.

Launching tracking stocks like the Braves unlocks value obscured within larger holding companies. Direct listings give the public a path to ownership. And allowing entities like private equity to buy equity portions opens huge new sources of capital.

Meanwhile, leagues themselves are attracted to public listings to better capitalize on their own media rights and global growth potential. This could eventually provide an Index Fund-like product for broad sports investment.

There are risks associated with fragmented ownership interests. Too many voices can undermine cohesion and strategic vision. Fans may make emotionally-driven governance decisions. Revenue sharing can breed internal conflict.

But managed properly, diverse ownership can strengthen continuity, embed fans’ perspective, and provide balanced guidance. Today’s limited partners may become tomorrow’s influential stakeholders.

A Watershed Moment for Sports Investment

This emerging democratization of sports ownership access reflects a strategic inflection point. As media disruption creates demand for elusive live programming, investor appetite flourishes for a stake in sports.

Leagues and teams will weigh options carefully to optimize ownership structures for sustainable success. But the doors appear to be incrementally opening to new sources of capital and a wider pool of investors.

While past eras saw sports remain an ultra-exclusive asset class, this new paradigm promises investment opportunities for the many, not just the few. The days of retail investors being shut out of the owner’s box may be numbered.

Those passionate about a franchise may soon be able to back that devotion with a real financial commitment. Teams capturing fans’ hearts can now capture their wallets too. By sharing equity, the sports world balances strategic interests with emotional buy-in.

This sea change ultimately elevates supporters from mere spectators and customers to fully-vested partners in a team’s success. As media disruption reshapes entertainment, sports investors and innovators are scoring by embracing inclusive evolution. The playing field is expanding.