Investing in an NBA team without being a millionaire? It's possible
Maybe you've always wanted to own a professional basketball team, but your bank account just wouldn't allow for it.
But now, there might actually be a way to do it.
The NBA is considering an investment fund that would allow people to buy small equity stakes in a portfolio of teams.
"I think there's a lot of people out there who would like to own a piece of their favorite franchise," Rosecliff founder and managing partner Mike Murphy told FOX Business on "After the Bell." "But remember, price tags are very high, so there'd to be some sort of a vehicle structure where the individual investor could get in, but historically, they've been a great investment."
Murphy said basketball is a better investment than other sports for multiple reasons.
"Baseball is having a hard time reaching out to the younger generation, but the NBA, I can speak firsthand, [for] my young sons, the NBA is hot right now," Murphy said. "They're marketing it correctly to the younger generation across all different economic classes, again, all different races follow this sport."
The top five valued teams in the NBA are:
-
New York Knicks - $4 billion
-
Los Angeles Lakers - $3.7 billion
-
Golden State Warriors - $3.5 billion
-
Chicago Bulls - $2.9 billion
-
Boston Celtics - $2.8 billion
That ranking just proves you don't have to have the best record in basketball to be a highly valued team. Murphy thinks this new investment idea is a good one because of that.
"A lot of people, who only have access to mutual funds or the stock market, are seeing private investments like venture capital, private equity that are doing extremely well," Murphy said. "And now they're starting to think 'Hey. If there was a way for me to do that, I would love to do it.' So it's a great investment and maybe it's a great investment for the little people as well as the big people."
CLICK TO READ MORE ON FOX BUSINESS
As for the one team Murphy would buy? He said he would buy the Knicks and see if he can get a winner on that roster.
Related Articles