During my investment research for MSG I found some really nice looking stock certificate of old publicly traded sports team. Pure play publicly traded sports team is a rare thing. It doesn’t happen often and when it does control is rarely given. In Europe there are a few soccer (football for the purists) teams are listed on the stock market. In North America, at the moment there’s Manchester United (MANU) that’s listed on the NYSE. Not exactly a local team but the owners, the Glazer family, are American.
I added some stock certificates of American sports team that use to trade publicly. They are more like novelty investments and gives the stockholder a “fake feeling of ownership”. You will find a stock certificate of the Green Bay Packers, the Boston Celtics, the Florida Panthers, the Cleveland Indians, and Manchester United.
The extract below is taken from my research on The Madison Square Garden Company. For the full report click here.
Reposted from Seeking Alpha
By Brian Langis
I did some research on other publicly traded sports teams and there isn’t much. It’s definitely not a popular sector. Most of publicly traded sports teams are soccer “football for the purists” teams in Europe and do not constitute a good base. I can’t really use them as comparable. In America, publicly traded companies pure plays are rare. The Rangers and the Knicks are part of a bigger company. The Toronto Maples Leafs is a small part of telecommunication giant Rogers and BCE. BCE also owns 18.4% of the Montreal Canadiens and the Atlanta Braves is one of the many assets inside Liberty Media. Usually the primary appeal of these stocks would the fans since little or any control is given. Just like MSG, you are not the “real” owner.
The only pure play I found is Manchester United (MANU). Only a small portion of MANU is publicly available and the company is controlled by the Glazer family. MANU had their IPO in 2012 at a price much lower underwriters expected because the fan base of retail investors didn’t show up. At the moment MANU is trading around $16 a share. As a side note, this wouldn’t have been the first time MANU is publicly traded. The Glazer family bought out the shareholders in 2004.
(Never publicly traded)
The graphic above is a certificate of the Milwaukee Braves, the same team that moved to Atlanta. They were never publicly traded and shares were sold to a few hundred locals. However you can indirectly invest in the Atlanta Braves. Liberty Media Corporation (LCMA); it owns and operates the Atlanta Braves as a part of their media empire.
The Cleveland Indians (CLEV) went public in June 1998 for $15 a share and went private again in 1999. Larry Dolan bought the team for $320 million in 1999 and offered between $22.25 and $22.75 a share. Larry Dolan is the brother of Charles Dolan, Chairman of Cablevision. Larry reportedly said to the Baltimore Sun:
“The owner of the Cleveland Indians is going to be myself. My brother, Charles, is not involved,” Larry Dolan said. “What he does is his business. I did tell him, `Charles, what we need is a pitcher. If you can’t pitch, we don’t need you.’ “
Source: Sports Finance by Gil Fried, Timothy D. DeSchrive, Michael Mondello
I must admit that’s one nice stock certificate. The 1996 Florida Panthers (PUCK) went public on the NASDAQ. Florida Panthers Holdings was Wayne Huizenga’s investment company. It’s wasn’t a sport pure play since the holding was filled with real estate and entertainment assets. In 1997 the Panthers made the move to the NYSE with a new symbol: (PAW), since the NYSE limits trading symbols to a maximum of three letters. The stock had ups and downs to eventually change its name to Boca Resorts. Mr. Huizenga sold the Panthers in 2001. You can see from the table below that the Panther’s had terrible cash flow.
Source: Sports Finance by Gil Fried, Timothy D. DeSchrive, Michael Mondello
The Boston Celtics (BOS) had a long public run. 40% of the team was offered to the public in 1986 at $18.50 a share. The Celtics were traded publicly until 2002 when the team became privately owned for $360 million.
The Green Bay Packers have a different ownership structure. The team is owned by the fans. The Packers sold their first shares for $5 in 1923. It’s not publicly traded. There are significant restrictions on all transfers. Presentably, 364,114 people, representing 5,014,545 shares can lay claim on the franchise. Shares include voting rights but redemption price is minimal and no dividends are paid. The stock cannot appreciate in value.
Other than interesting history, it doesn’t really help with the valuation of MSG. It appears that some of the investments above were novelty investments. Team owners often issue public offerings in order to monetize their holdings without losing team control. However, if MSG was ever going to break up, it might indicate that the Knicks and Rangers might be better off privately. I don’t think a professional sports team should be on the stock market. The team should be owned privately by an owner that wants to win rather than focusing on beating next quarter’s number.
For the full report click here.
FAQs
If the company is no longer in existence, the share certificate itself might still have some value to a collector. Share certificates are collected by scripophily enthusiasts for their historical significance and/or for their artwork and intricate engraving.
How do I convert stock certificate to cash? ›
In order to cash in the stock, you need to fill out the transfer form on the back of the certificate and have it notarized. Once complete, send the notarized certificate to the transfer agent, who will register the stock to you as owner.
How do I know if my stock certificate is valid? ›
Start by looking at a few things on the certificate. Look for the company name and location of incorporation, a CUSIP number, and the name of the person with whom the security is registered. All of these items are important and can likely be found on the certificate's face.
How can I check if a share certificate is valid? ›
In most cases, share certificates will remain valid until the shareholdings are sold or transferred. However, if the company merges or gets sold, the certificates may become invalid. If the company is known, the relevant share registrar can be contacted to check if the Deceased's share certificates are still valid.
Can I cash in found stock certificates? ›
Financial worth: When the issuing company remains operational, and its shares remain tradable, the certificate can retain financial value. You have the option to exchange the certificate for cash by selling it to a broker or directly to the company.
What makes a stock certificate valid? ›
A stock certificate proves the holder has ownership in the company, as it displays the number of shares owned, the date of purchase, a corporate seal, and other details. Scripophily is the hobby of collecting antique stock certificates and other historical financial instruments.
Do stock certificates expire? ›
Stock certificates do not expire.
How do I sell my actual stock certificate? ›
To sell a security for which you hold a physical certificate: check with your broker-dealer to see if they accept delivery of physical certificates, and if so, deliver the certificate to your broker-dealer according to the firm's instructions and with your instructions to sell; or.
What is the dollar amount printed on a stock certificate? ›
Answer and Explanation: The is the amount assigned to each share of stock that is printed on the stock certificate is called its par value. This par value is the minimum amount a corporation can accept for its stock but has nothing to do with the market value of the stock or its issue price.
Are stock certificates numbered? ›
Serial Number – A unique serial number is assigned to each certificate. This is usually pre-printed.
The CUSIP number, also known as the Committee on Uniform Securities Identification Procedures number, is a unique nine-character identification number assigned to all stocks (and registered bonds) in the U.S. and Canada. 1 It is used to create a concrete distinction between securities that are traded on public markets.
What is 100 shares of stock called? ›
In stocks, a round lot is considered 100 shares or a larger number that can be evenly divided by 100. In bonds, a round lot is usually $100,000 worth. A round lot is often referred to as a normal trading unit and is contrasted with an odd lot.
Can stock certificates be reissued? ›
Replacing a Stock Certificate
Shared certificates can be replaced if lost, stolen, or damaged. To replace the physical certificate, shareholders must contact the company's stock transfer agent. 1 They may also be required to complete an affidavit of loss document.
How do I claim old shares? ›
Here's a step-by-step guide to help you claim your unclaimed funds:
- Step 1: Visit the IEPF website. ...
- Step 2: Log in to the MCA Portal. ...
- Step 3: Fill out the online form. ...
- Step 4: Attach the Required Documents. ...
- Step 5: Submit the Form. ...
- Step 6: Share physical documents with the Nodal Officer.
Share certificates have the following information: Certificate number – 1, 2, 3, etc. Company name and registration number. The registered office of the company.
What should I do with stock certificates? ›
You can cash them in through the transfer agent of the company with which the stock is owned. Or, you can work with a broker to sell the stock. Research the value of the stock to know whether you are holding on to fortune in cash or simply a pretty, collectible piece of paper.
What can you do with worthless stock certificates? ›
When one determines for tax purposes that a security has become totally worthless, an investment fund can take a capital loss under IRC Section 165. The resulting loss may be deducted as though it were a loss from a sale or exchange on the last day of the taxable year in which it has become worthless.
What happens to unclaimed stock certificates? ›
California law requires corporations, businesses, associations, financial institutions, and insurance companies (referred to as “holders”) to annually report and deliver property to the State Controller's Office if there has been no activity on the account or contact with the owner for a specified period of time ( ...
Is a share certificate better than a CD? ›
Both certificates of deposit (CDs) and share certificates are low-risk deposit accounts where your money can grow at a fixed rate. The main distinction between them is that CDs are products offered by for-profit banks, while share certificates are offered by member-owned, not-for-profit credit unions.
