The Board of Control for Cricket in India (BCCI) has been approached by the owners of three Indian Premier League (IPL) teams regarding their capital-raising plans. Delhi Capitals and Kings XI Capitals are planning a public listing, while the Rajasthan Royals are considering raising private equity funds, reported Mint, citing a BCCI official.
Currently, the discussions are in the early stages, and the teams are seeking clarity on listing on bourses from the board, a second BCCI official confirmed to Mint.
As per the report, not all franchises are looking for a public listing, as many of them are owned by listed companies. Sunrisers Hyderabad are owned by Sun TV Network; Royal Challengers Bangalore are owned by United Spirits Ltd, a Diageo group firm; and Mumbai Indians' are owned by Reliance Industries’ subsidiary Indiawin Sports Pvt Ltd.
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As Indian teams look to explore the stock exchanges, here is how listing on bourses panned out for different teams across the world:
Manchester United
The United Kingdom’s Manchester United soccer team is one of the most successful sports franchises in the world. Since its foundation in 1887, the team has won 20 Premier League titles and 12 FA Cup titles. The team owners decided to take the team public on the London Stock Exchange in 1997. The stock lost over 50 per cent of its value over the eight years it spent on the bourses and was delisted in 2005.
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In 2012, the Glazer family took the team public again on the New York Stock Exchange (NYSE) under the ticker code MANU. Since then, the stock has surged over 40 per cent and over 36 per cent in the last year, as of 15 September 2023. The company has a market capitalisation of $3.22 billion.
Madison Square Garden Sports
Madison Square Garden Sports Corp. (MSG Sports) is a New York-based sports holding company primarily focused on professional teams and live entertainment. The company owns several sports teams, including a basketball team New York Knicks basketball team and the New York Rangers hockey team. MSG Sports is listed on the NYSE under the ticker code MSGS.
As of 15 September 2023, the stock had surged over 51 per cent since its listing in September 2015. In the last five years, MSG Sports has fallen over 16 per cent, while it has gained 16 per cent in the last one year. The company has a market cap of $4.23 billion.
Atlanta Braves
The Atlanta Braves are also a publicly traded sports franchise. The team is owned by the Liberty Braves Group, a holding company that also owns several real estate properties surrounding Braves Stadium. The Braves are one of two MLB teams that are owned by publicly traded corporations.
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The stock has surged over 50 per cent in the last five years and nearly 35 per cent in last one year as of 15 September 2023.
Toronto Blue Jays
Roger Communications Inc (RCI), a Canadian communications and media company, acquired 80 per cent stake in the Toronto Blue Jays in 2000, adding the other 20 per cent to its holdings. However, the team itself isn’t publicly traded; Rogers Communications, which also owns the Toronto Maple Leafs (National Hockey League) and the Toronto Raptors (NBA), is publicly traded.
These assets are a small part of Rogers' financial picture. However, owning Rogers' stock allows you to have a small stake in the competitive sports world.
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Listed on the Toronto Stock Exchange (TSE), the stock has fallen over 17 per cent in last five years and gained nearly a per cent in last one year as of 15 September 2023.
Sports franchises don’t react to market influences as much as other types of companies. The revenue largely depends on stadium attendance and media broadcast expenses, and a winning or losing season can significantly impact the finances of a team. But with the growing market as the value of teams exploded, the cost of building stadiums increased, and the money required to attract players increased exponentially. In the coming years, more teams are likely to go public to raise money and spread out the risk.
