A Comprehensive Guide to Team Fan-Led Funding and Community Ownership

The Rise of Fan-Powered Sports Ownership

It's truly remarkable when a community rallies to reclaim a piece of its soul.

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Fan-powered ownership is gaining traction and remarkable examples like the Oakland Ballers demonstrate success by raising $1 million in just 48 hours. That's an investment pouring in every 3.5 minutes, a testament to the power of community-driven initiatives. The team has now reached over $3 million from 2,500+ investors.

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New models are offering fans the opportunity to participate in team ownership and decision-making. Teams like Oakland Roots & Soul Sports Club have raised over $3 million from 5,400+ investors, achieving a $93 million valuation in 2024 - up 19% from their initial round.

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This success stands in stark contrast to the traditional sports ownership model, where billionaire owners have often made decisions leading to beloved teams like the A's, Raiders, and Warriors departing from cities such as Oakland, leaving dedicated fanbases behind.

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This kind of direct-to-investor capital formation is transforming how teams and companies can approach their financial futures, fostering deeper connections with their supporters along the way.

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Fans are now invited to join these new ownership models and become active participants in their teams' futures. The team's value is deeply connected to its fans, who deserve a voice in key management decisions that shape the team's direction.

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Why Fan-Powered Financing is Redefining Sports

The arena of sports finance is experiencing a significant transformation, with community-driven funding models rapidly gaining traction.

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The global sports crowdfunding market is a testament to this shift, projected to reach $71 million by 2025, expanding at a compound annual growth rate (CAGR) of 13%.

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This surge is not just a fleeting trend but a response to evolving economic landscapes and a growing desire for more inclusive ownership structures.

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Several factors are fueling this movement. The period following the COVID-19 pandemic, for instance, brought considerable financial pressures on sports teams, compelling them to seek innovative financing solutions.

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This environment has paved the way for a broader democratization of sports ownership. We're seeing a move away from solitary billionaire owners towards a more distributed model, exemplified by organizations like the Oakland Ballers, which have attracted over 3,100 community investors.

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So, why are teams increasingly looking towards their fanbases for capital? The sports industry itself has seen a dramatic 45% growth in value since 2011, which, while positive, has also contributed to unsustainable cost structures for many.

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Compounding this, traditional bank lending often comes with restrictions that can be challenging for sports organizations to navigate. Crowdfunding offers a viable alternative, providing not only capital but also a significant boost in fan engagement.

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A remarkable 82% of contributors to sports crowdfunding campaigns report feeling a stronger emotional connection to the team's future, as they become part of the team's collective ownership and are more involved in shaping the team's direction.

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Live games serve as a focal point for fan connection and are a key driver of both revenue and engagement in these new funding models.

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Beyond the financial and engagement benefits, this model can also offer communities a greater sense of stability and protection against unwelcome team relocations or abrupt changes in ownership.

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Power to the People: Community Ownership Hits a Home Run

The financial playbooks for sports teams are being rewritten, moving beyond traditional, often strained, funding mechanisms towards more inclusive and sustainable community-centric models.

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Historically, public funds frequently played a significant role. For instance, a notable 67% of minor league stadiums constructed between 1991 and 1995 relied on 50% or more public funding, a model increasingly viewed as unsustainable in the long term.

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In contrast, modern approaches are showcasing the profound impact of direct fan and community involvement. The Oakland Ballers, for example, recently demonstrated the immense potential of this engagement, drawing nearly 100,000 fans in their very first season operating under a community ownership structure.

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This isn't an isolated phenomenon. The German Bundesliga, with its renowned "50+1 rule" ensuring members (fans) retain majority control, consistently boasts the world's highest average attendance, with over 42,000 fans per game, a testament to the deep connection fostered by fan-centric governance.

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More recent success stories are emerging globally. FC Pinzgau Saalfelden in Austria has attracted fan-owners from 42 US states and 8 countries, doubling attendance since 2019 and tripling sponsorship revenue. The third-division football club transformed from a struggling regional team into promotion contenders through community investment.

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Many teams are upgrading their facilities and adopting community ownership models, making them increasingly attractive to investors and fans alike.

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These examples underscore a powerful shift, proving that when fans have a tangible stake, the enthusiasm and support can translate into remarkable success, both on and off the field.

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Regulatory Framework - Navigating SEC Rules for Sports Franchises

The arrival of the Jumpstart Our Business Startups (JOBS) Act in 2012 marked a truly transformative moment for how sports teams could engage with their communities for capital raising.

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Before this landmark legislation, businesses, including sports franchises, faced substantial regulatory barriers when seeking to publicly offer shares. League rules have also historically limited the ability of teams to seek outside investment, shaping the regulatory environment for sports franchise funding.

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The primary hurdle was the complex and costly SEC registration process, which effectively prohibited them from soliciting investments from unaccredited investors.

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The JOBS Act, however, decisively changed this landscape. By easing specific securities regulations, it empowered smaller enterprises to more readily access capital online.

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A key component of this change was the introduction of Regulation Crowdfunding (Reg CF). This provision specifically carved out a clear, regulated framework, enabling teams to offer securities and raise funds from their fanbase and community members through SEC-registered funding portals.

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In essence, the JOBS Act converted a previously restricted and often inaccessible avenue for investment into a structured, compliant, and more democratic opportunity, heralding a new era for fan and community participation in sports ownership.

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Regulatory Deep Dive

The JOBS Act revolutionized how teams can access community capital, but understanding the specific regulatory pathways it created is crucial for any successful venture.

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Institutional investors, when participating in sports franchise funding solutions, must navigate specific regulatory requirements and limitations that govern their involvement, including ownership rules and capital thresholds.

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A private equity fund, as a type of institutional investor, must also comply with these regulatory requirements when investing in sports franchises, taking into account restrictions on ownership limits and governance rights.

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Regulations often limit the percentage of a club's equity that can be sold to private equity or institutional investors, imposing caps on how much ownership can be transferred and setting requirements for holding and transaction processes.

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Let's explore the key provisions, such as Regulation Crowdfunding (Reg CF) and Regulation A+, that empower sports franchises to compliantly raise funds from their dedicated fanbases.

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Regulation Crowdfunding and Regulation A+

To effectively leverage the capital-raising opportunities unlocked by the JOBS Act, it's essential to understand the specific frameworks available.

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Two primary regulations that sports teams and organizations often turn to are Regulation Crowdfunding (Reg CF) for broader community participation and Regulation A+ for larger funding requirements.

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It is important to note that investments made through Regulation Crowdfunding and Regulation A+ are not guaranteed, and investors should be aware of the associated risks.

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League Specific Restrictions

Understanding the distinct ownership frameworks within major professional sports leagues is a pivotal step for teams exploring community-centric capital pathways.

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Private equity investments have become a key source of capital for professional sports teams, including NBA teams, as institutional investors and private equity funds seek opportunities to acquire minority or controlling stakes in clubs.

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Private equity investments allow institutional investors to acquire minority stakes in professional sports teams, often subject to league-specific restrictions on the percentage of a club's equity that can be owned and the governance rights attached.

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In some leagues, institutional investors can acquire a controlling stake, which gives them significant influence over team decisions; for example, in the NWSL, Sixth Street holds a controlling stake in Bay FC.

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The regulatory landscape varies significantly, impacting how fan ownership or broader investment can be structured. In Major League Soccer, holding a majority stake is crucial for governance rights and decision-making power in franchise investments.

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NFL Regulations

The NFL generally prohibits publicly-traded, corporate ownership of its teams following the "Green Bay Rule" established in 1960.

The Green Bay Packers are considered a publicly-owned non-profit with a unique stock ownership structure. After this structure was implemented, the NFL constitution was changed to outlaw this type of ownership structure so no other team can follow in the Packers' footsteps.

As it stands, the Packers are the only NFL team allowed to participate in community capital funding and sell stocks.

While direct investment in NFL teams is not possible, some investors gain indirect exposure to the league through mutual funds that hold shares in companies with NFL affiliations.

The NFL is making steps towards less stringent ownership rules, but still not accepting retail investors. As of 2024 the new regulations include:

• 10% of the team can be owned by private equity (6 approved funds)
• Each stake must be for at least 3%
• The controlling owner must own at least 30% of the team
• No team can have more that 25 owners (including controlling owner, family, and private equity funds)

MLB/NBA/NHL Regulations

For sports enthusiasts looking to invest in their favorite teams, the path isn't always straightforward.

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These regulations apply to professional sports teams across the MLB, NBA, and NHL.

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Direct investment in individual NHL, MLB, or NBA franchises by the general public is generally not an option, as these teams are often privately owned or part of tightly controlled ownership groups.

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However, an indirect avenue for investment can exist for some teams that are owned by larger, publicly traded corporations.

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Investing in these parent companies means you're not buying a direct stake in the team itself, but rather in a diversified corporation where the sports franchise is just one of its many assets.

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Similar to the NFL, these leagues have not opened the door to retail investors, but are starting to lift restrictions on private equity ownership:

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Independent and Minor League Regulations

Many independent and minor leagues do not have strict ownership regulations so crowdfunding can be a useful tool.

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Investment opportunities and risks can vary significantly between minor league teams and other teams in the broader sports landscape, making it important for investors to understand the unique dynamics and valuations involved.

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In fact, in terms of dollars raised, sports is the second largest Kickstarter category with over $80 million raised. There are 12,000+ campaigns at a 64% success rate making sports an attractive category for retail investors.

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Crowdfunding provides a significantly streamlined and more accessible pathway for minor league and independent league sports teams to raise capital, often with fewer regulatory hurdles compared to professional leagues.

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Here's how crowdfunding simplifies the process for these teams:

• Reduced Regulatory Burden: Regulation Crowdfunding (Reg CF) offers lower compliance, enabling emerging and local teams to raise up to $5 million from diverse investors, unlike the stricter requirements for major league franchises
• Alleviates Funding Pressure: Crowdfunding eases the financial pressure on youth and amateur sports groups who struggle with traditional funding or self-financing
• Democratizes Fan Ownership: It broadens capital access for grassroots community teams and allows fans to become team stakeholders, strengthening both financial resources and community ties

Compliance Requirements

Navigating capital raising can be complex, but understanding key aspects of Reg CF simplifies the journey. Some key compliance points include:

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Financial Disclosures Vary by Raise Amount: For Reg CF offerings, financial statement requirements differ based on the amount raised in a 12-month period.

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"Bad Actor" Disqualifications Apply: Offerings can be disqualified if the issuer or "covered persons" have specific past legal or regulatory violations, such as securities fraud.

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One-Year Resale Restriction: Securities bought in a Reg CF offering generally cannot be resold for one year, with exceptions for transfers to the issuer, accredited investors, registered offerings, or certain family/trust/death/divorce scenarios.

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Mandatory Annual Reporting: Issuers must file an annual report on Form C-AR no later than 120 days after their fiscal year-end, both on EDGAR and their website.

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When considering sports crowdfunding investments, it is important to be aware of common risks such as illiquidity, lack of transparency, and market volatility.

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Legal Structure Options

Choosing the right legal structure is fundamental for any organization, especially in sports, as it dictates how capital is raised, how profits are handled, and how stakeholders are engaged.

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Asset managers are increasingly involved in structuring and managing investments for sports franchises, particularly as the industry attracts more institutional capital.

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For-profit C-Corp or LLC

• Used by the Oakland Ballers and is primarily designed for profit generation for their owners or shareholders
• They function as separate legal entities, offering liability protection to their owners while enabling the raising of capital through equity investments
• Profits can be distributed to owners, and the structure is commonly used for businesses seeking to maximize financial returns

Non-Profit 501(c)(3)

• Used by the Green Bay Packers and is established for specific charitable, educational, religious, or scientific purposes
• Its core function is to reinvest all revenue back into the organization to further its mission, rather than distributing profits to individuals
• Organizations with this status are typically exempt from federal income tax

Benefit Corporation

• This is a type of for-profit corporation that operates with the dual purpose of generating profit and creating a general public benefit
• It legally requires the consideration of all stakeholders' interests including employees, the community, and the environment, ensuring a balance between financial goals and social impact

Community Benefit Societies (UK model)

• These are not-for-profit organizations in the UK whose primary function is to serve the broader interests of the community
• They operate under a model where profits are reinvested into the organization to achieve its community objectives, and they are often structured with democratic control to ensure community-centric governance

Case Studies - From Green Bay to Oakland

The Green Bay Packers: A Legacy of Community Ownership

In the realm of professional sports, where multi-billion dollar franchises are often privately held, the Green Bay Packers stand as a remarkable anomaly: the sole publicly owned, non-profit professional sports team in major U.S. sports.

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Their unique status as a professional sports team with a publicly owned structure sets them apart from all other franchises.

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The Packers were first incorporated as a publicly owned, nonprofit corporation in 1923. This foundational decision secured their place in Green Bay and provided a unique framework that has been grandfathered into modern NFL ownership rules.

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The team is uniquely owned by its fans with approximately 538,967 shareholders collectively owning around 5.2 million shares. To ensure no single entity gains control, the articles of incorporation prohibit any person from owning more than 200,000 shares.

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The Packers have periodically opened up ownership to their fanbase through stock sales. The 2011 offering raised over $64 million from more than 250,000 buyers purchasing 269,000 shares at $250 apiece.

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More recently, the 2021-22 sale powered by DealMaker generated $65.8 million from 176,160 new shareholders at $300 per share.

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Unlike conventional stock, Packers shares come with significant restrictions. Shareholders receive no dividends, cannot trade their shares, and the stock holds no equity market value.

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These shares are often described as "donations with voting rights," reflecting their primary purpose of supporting the team. Shares can, however, be willed to immediate family members or lineal descendants.

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This distinctive ownership model yields powerful results. The team cannot be relocated, as there's no financial incentive for shareholders to move it.

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It fosters deep financial transparency due to its public, non-profit nature, and ensures that any proceeds from a potential sale would benefit charitable causes through the Green Bay Packers Foundation.

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This model has underpinned the team's sustained competitive success and unwavering fan loyalty.

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Oakland Ballers: Pioneering Fan-Owned Professional Baseball

The Oakland Ballers are revolutionizing sports ownership, standing as a significant innovator in the U.S. professional baseball landscape by being the first team to offer real equity with voting rights to fans.

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Their groundbreaking community investment campaign was facilitated by DealMaker Securities LLC. Through their initial community investment rounds, the team successfully raised over $3 million from more than 2,500 investors.

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Shares were offered with a minimum investment of just $170 per share, reflecting an estimated team valuation between $25 million and $26.235 million.

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What truly sets this model apart are the unprecedented rights granted to fan-owners. These rights give fans a real voice in the team's operations and future, allowing them to directly influence the team's direction and management.

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Supporters with ownership stakes gain a bundle of rights that includes critical checks and balances on key team decisions such as where the team is based, changes to logos and brand marks, and even some front office hiring decisions. Co-founder Paul Freedman explains: "We believe that the social contract between sports teams and fanbases is broken, and that it's fans who create the value of a sports team."

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This innovative approach quickly translated into tangible success during their first year. The Ballers achieved over $1 million in merchandise sales, secured nearly 50 new sponsors, and saw their first game sold out.

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This fan-centric model fosters a unique sense of collective ownership and shared purpose, positioning the Oakland Ballers at the forefront of a new era in professional sports.

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Oakland Roots & Soul: Setting New Standards for Community Investment

Oakland Roots & Soul Sports Club has emerged as another powerful example, raising over $3 million from 5,400+ investors through multiple crowdfunding rounds. The team achieved a $93 million valuation in 2024, representing a 19% increase from their initial round.

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Their success extends far beyond financial metrics:

• 80,000 expected fans attending games in 2024
• 20x increase in youth player development minutes
• Approval for a 10,000-seat stadium at the Oakland Coliseum site
• Strong merchandise and sponsorship growth

This demonstrates how community investment can drive both financial success and community impact.

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Fan Ownership in Action: Inspiring Models from Global Sports

The power of collective ownership by fans is not just a theoretical concept; it's a proven model for resilience, growth, and unparalleled community connection in sports worldwide.

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From grassroots revivals to established giants, fan-owned clubs demonstrate a profound impact on their destiny. Some fan-owned clubs also invest in sports adjacent businesses to diversify their revenue streams and support long-term sustainability.

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AFC Wimbledon

• AFC Wimbledon stands as a testament to fan power's ability to resurrect a club
• After their original team was relocated, dedicated supporters banded together to start anew, forming a phoenix club that rapidly ascended through the leagues
• AFC Wimbledon powered its way through the non-league system and into the Football League's League Two in just nine years, now playing back at their very own Plough Lane stadium, owned by The Dons Trust, a supporter's trust

Detroit City FC

• Across the Atlantic, Detroit City FC showcased the vital role of fan ownership during a crisis
• In response to the unprecedented challenges posed by the COVID-19 pandemic, the club launched a crowdfunding campaign, allowing fans to purchase an equity stake
• This strategic move offered up to 10% equity, aiming to raise a maximum of $1.2 million through a Reg CF offering, directly enabling the club to navigate and survive the crisis
• The club's value has grown from $10.8 million to $35 million while maintaining 6,000+ average attendance

Portsmouth FC

• Portsmouth FC's story is another compelling narrative of fan intervention saving a beloved institution
• After facing administration twice and a winding-up petition, fans rallied, and in April 2013, the Portsmouth Supporters' Trust successfully took control of the club
• Remarkably, their new owners repaid approximately £7 million to creditors by September 2014, clearing all debts two years ahead of schedule and just over a year after assuming control

FC Pinzgau Saalfelden (Austria)

• This third-division Austrian football club has attracted fan-owners from 42 US states and 8 countries
• Since 2019, they've doubled attendance and tripled sponsorship revenue
• The club transformed from struggling regional team to promotion contenders
• They've launched a women's program and established an Austrian Federation-approved youth academy

German Bundesliga

• The German Bundesliga provides a systematic framework for fan control through its distinctive '50+1' rule
• Introduced in 1998 by the German Football Association (DFB), this rule mandates that club members' associations must own at least 50% plus one share of a Bundesliga club
• This regulation is pivotal in preventing excessive private investment, maintaining financial security, and ensuring that fans retain majority control over their clubs
• Bayern Munich, for example, boasts over 300,000 members, who, through this rule, maintain significant influence, even with some shares held by corporate partners like Adidas, Audi, and Allianz

These diverse examples underscore the profound impact of fan ownership, demonstrating how it can secure a club's future, foster deep community ties, and even drive competitive success.

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The Challenges of Online Engagement: Lessons from MyFootballClub and Ebbsfleet United

While community ownership offers incredible potential, it also highlights the critical importance of effective member engagement and operational efficiency.

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The experience of MyFootballClub and Ebbsfleet United provides a valuable case study in the challenges that can arise when member participation falters.

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Initial enthusiasm for this innovative model, where fans collectively owned the club, saw subscription rates peak around 28,000 at the time of the takeover in 2008.

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However, this number dramatically fell to just 3,000 by 2010. This significant decline in engagement and membership was notably impacted by the slow implementation of many promised features.

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As a direct consequence, participation in member votes also plummeted, indicating a disconnection between the club and its broad ownership base.

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If you don't maintain transparency and good communication with the fans, this can become a likely reality as 67% of failed campaigns cited transparency issues as their primary cause.

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This illustrates that the success of a broad-based ownership model hinges not just on initial buy-in, but on sustained, dynamic engagement and the consistent delivery of promised benefits to the community of owners.

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Implementation Strategy - Building Your Crowdfunding Campaign

A robust implementation strategy is the backbone of any successful crowdfunding campaign, transforming a great idea into a funded reality.

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Neglecting foundational elements like meticulous pre-campaign planning, appropriate legal structuring, and thorough financial forecasting can undermine even the most promising ventures.

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Mastering these strategic components is essential to navigate complexities, build investor trust, and ultimately achieve your fundraising objectives.

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Additionally, teams should consider various investment strategies to maximize the effectiveness and resilience of their crowdfunding campaigns.

Campaign

Pre-Campaign Foundation

Setting the stage for a successful crowdfunding campaign is crucial, and it all begins long before you hit "launch."

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This pre-campaign phase is where you'll lay the essential groundwork to ensure your fundraising efforts are not only impactful but also compliant and sustainable.

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Getting these foundational elements right will provide the stability and clarity needed to navigate the exciting journey of your crowdfunding campaign. Additionally, considering how sports franchise investments can offer diversification benefits compared to traditional asset classes such as equities, fixed income, and real estate may strengthen your campaign's appeal to potential investors.

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Legal Structure Selection

Selecting the appropriate legal entity is one of the most pivotal decisions you'll make.

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This choice influences your personal liability, tax obligations, ability to raise capital, and the overall structure of your business.

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Understanding the various entity types and aligning them with your business goals is essential for long-term success.

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Some common entity types include:

• Sole Proprietorship: Easiest to set up, but offers no personal liability protection
• Partnership: Shared responsibility, but shared risk too
• LLC: Flexible structure with liability protection and pass-through taxation
• Corporation (C or S): Best for raising capital but comes with more complexity and potential double taxation (C Corp)
• Nonprofit: Tax-exempt, mission-driven, but highly regulated

Your business's objectives should be the foundation for choosing the right legal entity. The structure you select should support your long-term vision, growth strategy, and risk tolerance.

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As you evaluate your options, take into account the following key factors:

• Want liability protection? Consider an LLC or Corporation
• Expecting fast growth and investors? A Corporation might be best
• Prefer simple taxes and control? A Sole Proprietorship or Partnership could work
• Looking to reinvest profits or operate as a mission-driven org? Consider a Nonprofit

Once you have determined your entity type, it's time to start thinking about engaging a securities attorney to ensure compliance.

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If you're launching a crowdfunding campaign in the sports industry working with a sports-specific securities attorney isn't just a recommendation, it's a necessity.

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Sports ventures come with a unique set of legal complexities: league regulations, athlete endorsement deals, intellectual property rights, and fan-driven business models, to name a few.

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A general securities lawyer may know the SEC rules, but only one with sports industry experience will know how those rules intersect with real-world issues like contracts, merchandising rights, or franchise restrictions.

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They'll help ensure your offering is legally compliant, investor-friendly, and structured in a way that resonates with fans and stakeholders.

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With the help of your sports securities attorney, the next step is to file the appropriate SEC exemption, usually a form C for a Reg CF raise.

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Form C is the official disclosure document you file with the U.S. Securities and Exchange Commission (SEC) to legally raise funds from both accredited and non-accredited investors via online crowdfunding.

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Utilizing Reg CF and Form C allows you to raise funds without the full registration requirements typically involved in offering and selling securities with the SEC.

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Some basics steps to complete include:

1. Gather Your Information: Collect all necessary details about your business, ownership, finances, and the specifics of your crowdfunding offer
2. Fill Out the Form: Use the SEC's EDGAR system to complete Form C electronically. The system uses a fillable format where you input all required data, including attaching your financial documents
3. File with the SEC: Submit your completed Form C through the EDGAR portal before you start your crowdfunding campaign. This filing officially registers your offering with the SEC
4. Send to Your Crowdfunding Platform: After filing, provide the completed Form C to the intermediary platform hosting your campaign. They will use it to share vital information with investors

By following these steps, you ensure you meet SEC requirements and provide potential investors with all the information they need to support your business.

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Financial Planning

Strong financial planning is essential to a successful Reg CF campaign.

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Under SEC rules, the type of financial statements you must submit with Form C depends on how much you plan to raise:

• Under $124,000: You can provide self-certified financial statements signed by your principal executive officer. If reviewed or audited financials are already available, you must include those instead
• $124,001 to $618,000: You must submit financial statements reviewed by an independent CPA. Again, if you already have audited statements, you must include those
• Over $618,000: Audited financial statements prepared by an independent CPA are required. However, if this is your first time raising under Reg CF, a review may suffice in some cases

These requirements help ensure that investors have access to accurate, standardized financial data when evaluating your offering.

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Beyond historical financials, it's highly recommended to develop 3–5 year financial projections.

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These projections should include anticipated revenue, expenses, profits, cash flow, and balance sheet forecasts.

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When considering the risk and return profile of sports franchise investments, it's important to note that they differ significantly from fixed income investments, such as those represented by the Bloomberg Barclays US Aggregate Bond Index.

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Fixed income investments are generally lower risk and provide steady income, while sports franchise investments may offer higher potential returns but come with greater risk and volatility.

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While not mandatory, providing these forward-looking statements shows potential investors that you've thought critically about your business growth and funding strategy.

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Equally important is a clear use of proceeds statement. This section is required in your Form C, and outlines exactly how the funds raised will be allocated. Common uses are:

• Product Development
• Marketing
• Hiring
• Operations
• Debt Repayment

Being specific and transparent builds investor trust and demonstrates responsible financial stewardship.

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Utilizing General Crowdfunding Platforms

While niche platforms are built specifically for sports, several major equity and investment crowdfunding platforms have also supported successful sports-related campaigns.

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These platforms offer broader exposure and are well-suited for larger fundraising goals, especially for sports startups, leagues, and tech ventures.

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A unique benefit of DealMaker is that it provides a white-labeled, self-hosted solution, which allows companies to maintain complete control over their brand experience.

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This means investors see only that specific company's offering through its own branded interface, fostering a direct relationship rather than competing for attention among multiple listings.

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Furthermore, DealMaker digitizes and streamlines the entire capital raising process, offering sophisticated technology for compliance, analytics, and ongoing investor relations which may not be available on other platforms.

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Campaign Execution

Executing a successful crowdfunding campaign goes far beyond simply asking for funds.

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It requires fostering genuine connections with supporters, leveraging targeted marketing, and maintaining clear, transparent communication campaigns to generate momentum and sustained enthusiasm.

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Thoughtful planning around launch strategies, reward tiers, and ongoing engagement ultimately transforms one-time donors into passionate advocates and long-term investors.

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Additionally, some crowdfunding campaigns allow fans to invest directly in team equities, providing a unique opportunity to participate in the team's financial success.

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Community Building

Successful crowdfunding is about more than just asking for money, it's about creating a movement. Building a strong community around your campaign is one of the most powerful tools you can use to gain traction, build trust, and sustain momentum over time.

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In sports crowdfunding, that means tapping into the emotional connection fans and supporters have with a team, athlete, or mission.

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A key step in building that connection is growing an email list of potential investors or supporters before your campaign launches.

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By nurturing this list with behind-the-scenes updates, sneak peeks, and personalized messages, you can build anticipation and ensure a stronger launch day turnout.

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Equally important is crafting a compelling story around community ownership. Giving your supporters a clear, emotional reason to care increases the likelihood they'll share your campaign and stick around for the long run.

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Some other best practices when building your crowdfunding community are:

• Identifying Your Target Audience
• Creating Engaging Content and Messaging
• Leveraging Social Media and Online Platforms
• Utilizing Influencers and Partnerships
• Engaging with Your Supporters
• Offering Incentives and Rewards

Another way to strengthen your crowdfunding community is to host events and info sessions, in person or online.

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Info sessions, like webinars or expert panels, help supporters better understand your mission and feel more connected to it.

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These gatherings encourage real-time interaction, foster a sense of belonging, and give participants a chance to network with like-minded individuals. Adding contests or creative challenges can also boost excitement and engagement.

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By inviting supporters to participate and rewarding their involvement, you create a more dynamic, motivated, and emotionally invested community around your campaign.

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Launch Strategy

A successful crowdfunding campaign often begins with a soft launch to trusted supporters, then transitions into a public hard launch to build broader momentum and reach funding goals.

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The first 48 hours are crucial and this is when you rally your inner circle for your soft launch. Friends, family, and close supporters should be your first donors, helping to establish momentum and build credibility.

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Offering early perks or exclusive access is a great way to thank them and encourage quick action. Once you've raised about 30% of your goal, you're ready for the hard launch.

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Now's the time to go public by reaching out to the media, tapping into your broader audience, and amplifying buzz through social media.

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This staged approach builds trust and increases your chances of reaching your crowdfunding goal. Momentum attracts investors, and people are more likely to invest when they see others already have.

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Tiered Investment Incentives

Another launch strategy utilized by sports teams like the Oakland Ballers is a tiered approach. Tiered investment incentives offer different reward levels based on the amount a investor contributes to a crowdfunding campaign.

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This strategy encourages higher pledges and helps attract a wider range of supporters by giving them options that match their interest and budget.

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To create compelling reward tiers, consider the following strategies:

• Early Bird Discounts: Offering limited-time discounts to early investors can create a sense of urgency and reward prompt support. For instance, a $10 discount for the first 50 investors can incentivize quick action
• Bundle and Bulk Pricing: Providing discounts for multiple purchases encourages supporters to contribute more. For example, offering a set of products at a discounted rate can increase the average pledge amount
• Good-Better-Best Structure: Presenting a tiered structure with varying levels of rewards allows investors to choose the level of support that aligns with their budget and interest. This approach can increase overall contributions by appealing to a broader audience
• Exclusive and Personalized Rewards: Offering unique items or experiences, such as limited-edition products or personalized thank-you notes, can enhance the perceived value of higher-tier rewards and encourage larger pledges

By thoughtfully designing your reward tiers, you can maximize investor engagement, increase funding, and build a strong community around your campaign.

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Communication & Transparency

Establishing a consistent communication schedule and maintaining transparency are pivotal in fostering trust and engagement throughout a crowdfunding campaign.

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Ensure that you have a transparent and engaging communication plan in place prior to launching your campaign.

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Implementing a regular update schedule, such as weekly communications, keeps investors informed and engaged which leads to campaign success. Campaigns that consistently provide updates raise an impressive 126% more funds on average compared to those that don't.

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Your updates should be fully transparent, including both successes and setbacks because it demonstrates accountability and builds credibility.

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Sharing detailed information, such as financial breakdowns and project timelines, allows investors to understand how their contributions are being utilized.

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Addressing challenges openly and outlining steps to overcome them is also an important part of your communication plan as it can strengthen investor confidence and support.

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Marketing Tactics

A vital part of your campaign execution is marketing strategy. Sports teams typically have large and loyal fan bases which allows for community-first marketing.

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The Oakland Ballers utilized this strategy for their fan-powered campaign and found success. Here's how they did it:

1. Social Media Amplification
   
   
   • One of the Ballers' biggest wins came from their social media strategy which achieved an extraordinary 80% engagement rate
   • This wasn't just about posting frequently; it was about speaking directly to fans, sharing behind-the-scenes moments, and celebrating the community they were building
   • Their authenticity and responsiveness turned passive followers into active backers and ambassadors
2. Celebrity Investor Endorsements
   
   
   • The campaign gained serious momentum when high-profile investors like Billie Joe Armstrong of Green Day and rapper Too $hort joined in
   • These endorsements didn't just attract media attention they validated the team's mission and inspired fans to believe in something bigger than baseball
3. Local Media Partnerships
   
   
   • By working with local media outlets, the Ballers ensured that their message reached the right people, those who care most about keeping pro baseball in Oakland
   • Media coverage helped amplify their story and positioned them as a grassroots movement, not just another startup
4. Fan Ambassador Programs
   
   
   • What really set this campaign apart was the team's commitment to shared ownership
   • The Ballers invited fans to become more than spectators and offered the opportunity to sit on the team's board of directors and influence its future
   • This fan ambassador approach created an incredibly loyal base, turning donors into decision-makers and fueling a sense of collective pride

Successful crowdfunding in sports isn't just about raising money, it's about rallying people around a shared vision.

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Framing your marketing strategy with authentic storytelling, strategic partnerships, and community empowerment, they've proven that fans can be investors and builders.

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Post-Campaign Management

Raising capital through crowdfunding is only the first step but what happens after the campaign is equally important.

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Team owners play a crucial role in maintaining shareholder trust and engagement after a successful crowdfunding campaign.

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Effective post-campaign management is essential for sustaining trust, maintaining compliance, and keeping your community engaged for the long haul.

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First, you should establish a shareholder communications system. Creating an effective shareholder communication system is essential for maintaining trust, ensuring transparency, and driving long-term engagement.

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Companies should develop targeted messaging that aligns with the specific interests and concerns of different investor segments.

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This means providing timely, relevant updates through a mix of digital channels such as investor portals, email alerts, and virtual town halls.

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Consistent communication around key milestones, performance updates, and strategic goals helps shareholders feel informed and involved.

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Importantly, creating space for two-way feedback (Q&A opportunities or investor surveys) strengthens relationships and fosters a sense of shared purpose.

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Once your communications system is in place, it's imperative that you keep shareholders engaged so they stay loyal beyond initial investment.

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Keeping your supporters engaged after a campaign helps sustain their interest and ensures they stay informed about your progress.

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It also helps build a loyal, active community that will be more likely to support future fundraising efforts.

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Key Steps to Keep Engagement Strong:

• Consistent Updates: Share regular progress reports, milestones, and any obstacles you're facing. Mix in visuals like photos and videos to keep updates dynamic and interesting
• Active Social Media Presence: Interact with your backers on social platforms. Reply to their messages, post relevant content, and keep the dialogue alive
• Foster Community Spaces: Establish a dedicated space—like a Facebook group or online forum—where supporters can connect with each other and your team. This builds a stronger sense of belonging and long-term loyalty

Another way to foster long-term engagement is to implement voting mechanisms for your superfan shareholders.

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Let them vote on relevant decisions like merchandise designs, event locations, or social impact initiatives.

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Empowering fans to shape the future builds loyalty and turns passive supporters into active team members who are more likely to stay loyal and reinvest.

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Aside from shareholder relations, your post-campaign management must include annual reporting compliance with the SEC.

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If you raised with a Reg CF this means you must file a Form C-AR within 120 days of the end of your fiscal year. This report must be submitted via EDGAR and posted on your company's website.

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The financials don't require an audit or review, but reporting continues annually unless one of the following conditions is met:

• The company begins filing under Exchange Act Sections 13(a) or 15(d)
• It has filed at least one annual report and has fewer than 300 shareholders
• It has filed three annual reports and has under $10M in total assets
• All securities from the offering have been repurchased or redeemed
• The company has legally dissolved

Strong post-campaign management turns one-time investors into lifelong advocates.

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By combining transparent communication, interactive engagement, and regulatory compliance, you lay the foundation for lasting community trust.

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Prioritizing these steps not only protects your business but also fuels momentum for future growth and fundraising.

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The Future of Sports Ownership

The future of sports ownership is rapidly evolving, driven by innovative technologies and shifting fan expectations.

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Fans want to get off the sidelines and be active participants and stakeholders in their favorite teams. This new era promises greater community involvement, transparency, and shared decision-making, transforming how sports organizations engage with their supporters.

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Looking ahead, the future of sports franchise funding solutions will likely be shaped by the continued growth of national media deals and their significant impact on team valuations.

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Emerging Trends

The sports crowdfunding landscape is rapidly evolving, driven by cutting-edge technologies and shifting regulatory frameworks that open new doors for fan ownership.

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The National Women's Soccer League stands out as a prime example of a rapidly growing women's sports league, attracting significant investment and crowdfunding opportunities.

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The national women's soccer league has experienced notable growth, with its unique ownership structure and increasing appeal to private equity firms positioning it as a key player in the sports investment landscape.

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Innovations like blockchain and AI are enhancing transparency, engagement, and campaign efficiency, while evolving regulations promise greater access to capital and clearer guidelines tailored to sports ventures.

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These emerging trends are also fueling increased investment and crowdfunding opportunities in women's sports, with leagues like the WNBA and National Women's Soccer League drawing attention from private equity and institutional investors.

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The expanding opportunities in women's sports, especially in leagues such as the WNBA and the national women's soccer league, are attracting new types of investors and reshaping the professional sports landscape.

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Technology Integration

Blockchain technology is emerging as a powerful solution for managing transparent, secure records of team ownership and investor participation.

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It's a decentralized digital ledger that records transactions across multiple computers, making it highly secure and transparent.

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For sports ownership, blockchain can be used to issue digital shares or tokens, creating tamper-proof records of who owns what.

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This ensures transparency in ownership, reduces fraud, and makes it easier for fans and investors to track their stake in a team or project.

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The Chiliz/Socios platform achieved regulatory licenses across Italy, Spain, Portugal, and Lithuania, becoming one of the most regulated crypto entities globally while facilitating fan engagement through digital tokens. Fan token trading volume reached $134 million in 24-hour periods during major tournaments.

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Another emerging technology trend in the crowdfunding space is mobile apps for real-time shareholder voting.

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The Oakland Ballers have utilized their app to include their shareholders in decisions to foster a more loyal community and drive engagement.

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This innovative approach enables fans to vote on various aspects of the game, such as jersey designs, starting lineups, and even pitch selections during key moments.

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By integrating this interactive platform, you can enhance the spectator experience and foster a deeper connection between the team and its community.

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The use of AI is being integrated into every aspect of business and user experience, including sports crowdfunding as an optimization tool.

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AI tools can analyze massive amounts of real-time data to identify trends, predict donor behavior, and fine-tune messaging for different audience segments.

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For example, AI can help determine the best times to post on social media, suggest which types of content drive the most engagement, and even recommend reward tiers based on backer preferences.

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Beyond analytics, AI can also automate parts of your campaign like personalized email outreach or chatbot responses which frees up your team to focus on creative strategy and relationship-building.

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The result is a more efficient, data-driven campaign that adapts quickly to what's working (and what isn't), helping you maximize funding and fan engagement.

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Regulatory Evolution

As fan-owned sports ventures continue to grow, so too does the regulatory framework that supports them.

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Reg CF, once limited in scope, has evolved into a powerful funding channel with expanded limits and wider accessibility for both teams and fans.

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With discussions underway to further raise funding caps and offer sports-specific guidance, the regulatory landscape is becoming increasingly aligned with the needs of modern, community-driven sports ownership.

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Potential Raise in Reg CF Limits

Sports teams often turn to Regulation Crowdfunding because it allows them to raise capital directly from their most passionate supporters, turning fans into investors and building a stronger sense of community ownership.

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The process is also relatively easier and more accessible, requiring fewer documents and less regulatory burden compared to traditional funding methods.

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With potential increases in the fundraising limits, sports organizations could soon access even larger sums which empowers them to invest more in facilities, talent, and fan experiences.

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Reg CF has come a long way since its launch, evolving into a powerful tool for startups and growing businesses to raise capital from everyday investors.

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Originally capped at just $1.07 million, the SEC significantly boosted the funding limit to $5 million in March 2021.

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This adjustment allowed issuers with higher valuations and revenues to tap into wider pools of capital, leading to stronger investor interest and more successful raises. Since 2016, over 8,400 offerings have raised $1.3 billion through Regulation CF.

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Now, with the Reg CF market continuing to grow, momentum is building for the next big step: raising the cap again.

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Industry advocates are pushing for a new limit of $20 million, arguing it would open doors for more established businesses while spreading investor risk across better-capitalized ventures.

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If Reg CF limits rise again, it could unlock major opportunities for sports teams and startups to raise larger rounds directly from fans by accelerating community ownership and expanding access to capital beyond traditional investors.

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Sports-Specific Guidance

Currently the SEC has not issued sports-specific guidance for Reg CF, but that is expected to change in the upcoming years.

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The increasing use of crowdfunding by sports teams and the growing interest in fan ownership may prompt the SEC to consider tailored regulations or clarifications to address the unique aspects of sports investments.

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Such guidance would help streamline compliance, protect investors, and encourage more teams and sports ventures to leverage crowdfunding successfully.

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Streamlined Interstate Offerings

When crowdfunding for your team, many of your investors will likely be local fans so you may not be heavily reliant on interstate offerings.

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However, if you have out-of-state (or country) investors interested in becoming part of the fan-owned experience, it's important to know the rules surrounding interstate offerings.

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Reg CF allows U.S.-based companies to raise funds from investors nationwide, but international participants must carefully consider eligibility rules and legal constraints.

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The European Union's Crowdfunding Service Providers Regulation has created a standardized framework enabling cross-border investment. The €5 million project limit and single "EU passport" licensing system have facilitated market consolidation while improving investor protections.

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Although foreign investors can take part in Reg CF campaigns, their ability to do so may be limited by the investment laws of their own country.

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If you're planning to invest in a foreign company or team, consider guidance from financial or legal experts to ensure you're in compliance with applicable regulations at home.

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If you have Canadian fans or are a Canadian wanting to invest in crowdfunding for an American team, this may prove difficult.

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Under current laws, Canadian retail investors are not permitted to participate in Reg CF offerings.

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However, accredited investors in Canada can still take part if they meet the eligibility criteria set by both their local securities regulators and the SEC.

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Understanding who can legally invest is just as important as building and executing your campaign.

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By staying informed about interstate and international crowdfunding rules, you'll protect your team, your investors, and the future of your fan-owned venture.

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Market Expansion Opportunities

The landscape of sports is rapidly diversifying, with new markets emerging that are primed for growth and investment through crowdfunding. The National Women's Soccer League is a prime example, experiencing rapid growth and attracting significant new investment and crowdfunding opportunities.

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From the explosive rise of women's professional leagues to the global ascent of esports and the grassroots strength of youth athletics, these expanding segments are redefining how fans engage and invest.

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The Rise of Women's Sports

The future of sports ownership is steering towards crowdfunding as the market continues to expand, adapt ownership rules, and provide new opportunities.

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One area that can see increased opportunities for crowdfunding is women's sports.

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For decades, men's sports have dominated the professional arena, capturing the lion's share of media coverage, sponsorship dollars, and fan engagement but women's sports have been gaining traction.

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Lately women's sports (particularly basketball, soccer, and hockey) have seen record breaking success across all aspects of their platform.

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This growing interest and success has led to 6 expansion team announcements within the last year across the PWHL, NWSL, and WNBA.

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The WNBA will roll out 3 expansion teams over the next two seasons with potential for even more future growth.

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The PWHL followed suit in April when they announced two expansion teams to debut in the 2025-26 season; an incredible feat considering the league has only operated for 2 seasons.

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This surge in expansion is not just about growing league rosters, it's about tapping into a uniquely passionate and energized fan base.

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Women's sports fans demonstrate very strong engagement and loyalty which presents a prime opportunity to leverage crowdfunding in the future as the leagues continue to grow and relax ownership regulations.

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Crowdfunding in E-Sports

Esports has evolved into a significant industry, characterized by professionalized competitions and a global fanbase.

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A pivotal aspect of this growth is the increasing reliance on grassroots crowdfunding to support various facets of the esports ecosystem, including tournament prizes, team operations, and event organization.

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Halo, a popular video game, has utilized community funding to their advantage to enhance its esports ecosystem and deepen community involvement. Since Halo Infinite launched, fans have collectively contributed close to $500,000 to prize pools for official Halo Championship Series competitions.

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By combining traditional crowdfunding efforts with collaborations involving teams like FaZe Clan, they boosted that team's prize pool to $75,000 and also backed independent events like the Grunt Classic organized by eUnited.

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This approach highlights a versatile and cooperative strategy that enables both the community and partners to drive the growth of competitive play.

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Crowdfunding for Youth Sports & Institutions

Crowdfunding for youth sports facilities and academies is experiencing significant growth, driven by the increasing financial demands of youth sports and the desire for community-driven funding solutions.

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Traditional funding sources for youth sports programs are often limited or highly competitive. Crowdfunding offers a direct avenue for teams, individual athletes, and sports organizations to connect with supporters, including families, friends, and local businesses.

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To maximize the effectiveness of your campaign, consider the following strategies:

• Set Clear Goals: Define specific objectives, such as raising a certain amount for tournament travel or facility upgrades
• Choose the Right Platform: Select a crowdfunding platform that aligns with your campaign's needs and audience
• Craft a Compelling Story: Share the team's journey, challenges, and aspirations to emotionally connect with potential donors
• Leverage Social Media: Utilize platforms like Facebook, Instagram, and Twitter to promote the campaign and engage with supporters
• Offer Incentives: Provide rewards such as team merchandise or shout-outs on social media to encourage donations

By implementing these strategies, youth sports programs can enhance their fundraising efforts and build stronger community support.

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Crowdfunding has been used in the youth sports sector to rejuvenate venues, pay for international tournaments, provide scholarships for low-income athletes, and more.

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With youth sports programs across the country facing major budget cuts, crowdfunding can be a lifeline for teams and institutions.

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As the landscape of youth sports continues to evolve, crowdfunding offers a sustainable and inclusive approach to funding that benefits both organizations and their supporters.

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ROI and Value Proposition

With crowdfunding reshaping sports ownership, it's important to note that the main benefits are community engagement and governance participation rather than exponential profit for investors.

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Crowdfunding is rarely about quick returns as many projects don't yield substantial financial gain, especially compared to traditional investments. The appeal instead lies in community participation, brand loyalty, and mission alignment.

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The Green Bay Packers offer a textbook case. Though their shares provide no dividends and can't be traded, they give fans a sense of belonging and the right to vote on limited matters at shareholder meetings.

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This model illustrates how governance rights and identity-driven investing can offer immense intangible value.

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From the issuer perspective, when a team succeeds, its valuation can soar. Detroit City FC's value has grown from $10.8 million to $35 million while maintaining strong fan engagement.

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However, for crowdfunders and minority stakeholders, liquidity is a major hurdle as many platforms do not offer resale options, and exits are rare.

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So while paper value may rise, cashing out can be difficult. Interestingly, some investors may benefit through tax deductions even when financial returns are modest.

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Minority owners in profitable sports teams can leverage depreciation and amortization to reduce their tax burden.

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These "paper losses" can offset other passive income, potentially creating financial efficiency even when capital appreciation is slow. Essentially, crowdfunding in sports ownership is more than just a numbers game.

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While direct financial returns may be modest and liquidity remains a challenge, investors often gain governance rights, community pride, and even strategic tax advantages.

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For fans and teams seeking connection as well as opportunity, it offers a compelling, if unconventional, form of ownership.

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Conclusion

The rise of sports team crowdfunding signifies a profound transformation in sports ownership, steering it away from traditional, often extractive models towards a future centered on community stewardship and shared purpose.

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This shift empowers fans to become integral stakeholders, fostering deeper engagement and a more democratic approach to how teams are governed and financed.

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While navigating the intricate web of regulatory frameworks and league-specific restrictions undoubtedly presents ongoing challenges, the path forged by pioneering examples from the groundbreaking equity model of the Oakland Ballers to the resilient fan-led revivals seen in UK football and the enduring community control enshrined in Germany's Bundesliga powerfully demonstrates that fan ownership can cultivate more stable, deeply engaged, and authentically community-focused sports organizations.

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As Paul Freedman of the Oakland Ballers summarized: "A team's fans are an instrumental part of the team's value. That's why fans should be treated accordingly with a real say in team management, not just hollow words."

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For teams aspiring to embark on this transformative journey, the ultimate key to success lies in diligently balancing the demands of regulatory compliance with the imperative of fostering genuine, transparent, and sustained community engagement.

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