How to Buy Shares of the Yankees
Financial analysts will often tell their clients that sinking money into a sports franchise isn't considered a good investment. But if you're a New York sports fan, it's probably your dream to own a piece of the Yankees. It gives you the right to attend shareholder meetings, receive annual reports and abuse your incompetent manager without the risk of being escorted out of the building. And more importantly, being a Yankees shareholder gives you the right to vote on issues pertaining to the success of the franchise.
How to Buy Shares of the Yankees
Perform Research. You can only purchase stock shares when the club allows them to become available on the open market. Sports franchises must be classified as a publicly traded stock before they're eligible to be purchased. It's perfectly legal for a sports team to be publicly-owned and yet not have their stock shares publicly traded.
Evaluate the deal. Take a look at your own financial situation before agreeing on a deal. Ask your broker for a detailed report on the playing field you will be going up against to purchase Yankee stock options. Also ask them for their opinion on the deal. Is this a good deal, or is this an elaborate scheme by an owner to line his pockets with more money.
Arrange a face-to-face meeting. Some of the best negotiations are completed over food. Arrange a dinner meeting with a shareholder and come to an agreement. Let your legal representation handle the fine points of the deal.
Consider a call option. Some investors like to have an option to purchase the stock at a set price before an agreed upon expiration date. This is called owning a call option to a stock, and your option to purchase at a set price is worthless after the expiration date.
Direct stock options. Some teams or corporations offer perspective buyers an offer to purchase stocks directly from them. It's called a direct stock option purchase plan that allows investors to buy shares with an initial deposit. An automatic withdrawal plan will be set up from either their savings or checking account until the payment is complete.
Join a DRIP. A great tool to help grow your profolio once you have acquired New York Yankee stock is a dividend reinvestment (DRIP) plan with the team. This allows the program administrator to purchase additional shares in your place. The benefit is that it allows you to build your wealth.
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Writer Bio
Thomas Conroy specializes in sports, politics and music. He has written for several media outlets on the West Coast, co-hosted a nightly talk show on the CBS Radio network and now serves as a radio analyst for high school sporting events on KBC Sports. Conroy holds a B.A. in English from San Diego State University.