Franchise ownership

Types of ownership

Single ownership-owned by a single individual or family

Corporate ownership-Corporate entities may own multiple sports properties

Community Ownership-local communities own shares of the team

Governance Models

League and franchise relationship-Still ownership, but the league owns assets (shares revenue, balances competition)

Board Governance-Teams have boards that oversee the club’s financial and operational aspects

Regulatory and compliance oversight- leagues enforce standards on financial health, team performance, and fair play

Trends in franchise ownership

International expansion and multi club ownership-sports are becoming more global, as ownership groups have expanded

Tech and innovation in governance-modern governance increasingly uses data to guide decisions

Fans and stakeholder engagement-owners are now more focused on engaging with fans

Challenges

Financial constraints and market disparities-smaller market teams face challenges in matching large market franchises

Ownership changes and relocation- changes in ownership can lead to instability for teams, as new owners may seek to relocate teams to more profitable markets

Public vs. private funding- Franchises sometimes seek public funding for stadium construction or renovation, which can lead to political challenges