Isn't this a crazy idea?
Of course it is. It's beyond crazy, actually. But some of the world's most successful businesses came from outrageous ideas. This is one of them.
What sports are you offering?
To start we are looking for 10-team football, baseball, basketball and hockey leagues. It may or may not grow from there.
When does the season start?
We have a goal of starting leagues in 2012.
Why fans?
Just think about what's missing from sports. The fans ability to do something about the outcome. Fans play in fantasy leagues and spend hours in front of sports video games. As a fan wouldn't you rather make real decisions?
How does this compete against the four major sports leagues?
Right now, it doesn't. Plain and simple. But imagine what would happen if over time sports fans migrated to this concept of owning the team themselves rather than blindly following their traditional home team?
So I pay my $25, now what?
Congratulations! You are now a part (and equal) owner of a professional sports franchise. You're vote counts and the earlier you become an owner, the more decisions you make.
What kind of decisions will I be making?
Anything from hiring front office personnel, negotiating player contracts, determining a home field, ticket prices, etc. Pretty much you have to run your team.
How many owners are involved?
There isn't a limit. The more you have, the more annual cashflow you have.
Where does this annual $25 go?
Five dollars goes toward the league you are in. The remainder ($20 for now, but owners may vote to increase owner investments in the future.)
What happens if this thing doesn't work for me, do I get my money back?
Yes. Until your franchise reaches 5000 owners (becomes an official Fanchise club) your investment is placed in an escrow account and cannot be used for business operations. Up until that point if the ownership group agrees to disband or individual owners decide they want to leave the organization they can sell their ownership certificate back to the league and be refunded their league fee, less the $5 administration fee — a refund of $20. Once a particular franchise reaches the 5000 owner milestone, refunds are not accepted since funds at that point are immediately being directed into the team's business operations. Please see this further explained on our blog.
What does the league do with the $5 (20%).
We run and operate the league offices, enforce rules and conduct, scheduling, develop and incorporate communication technology, market the league, legal expenses, staffing, etc. As an owner of a franchise you will be updated continuously on the efforts and initiatives behind Fanchise.
How many owners does a franchise require in order to have a team?
We're suggesting 100,000 owners. This would give you an annual operating budget of $2,000,000, but really there isn't a limit to how many owners a team can have. The more owners, the more operating capital.
100,000 owners?!?!?
That's really not a lot. Consider the major sports markets across the country. Football stadiums average 60,000 seats. Each week you have a certain number of season ticket holders, but you also have a large number of people who attend only a handful of games. 100,000 fans isn't a lot and at $25 it's an inexpensive investment.
How do we attract talent?
To begin, these fanchises will not likely attract "major league" talent. However, over time, it is our goal to build the league's recognition and payroll capabilities through broadcast agreements, sponsorships, merchandising and ticket sales — not unlike the traditional professional sports leagues. However, the one huge element that's different: YOU own the franchise. You decide how that money is spent. We don't tell you how to run your scouting and player personnel departments, but after spending many hours driving in the car listening to sports radio, it seems to us that most fans have a pretty good handle on scouting, drafting and player transactions. We'll see what you do. Fortunately, you have thousands of minds working towards a goal rather than a handful of front office people in your traditional pro sports franchise.
What happens if our team makes a profit?
Like any other business, you decide what to do with the money. Do you reinvest it into your club or do you share the profits amongst owners? That's something as owners you need to talk and vote about.
What if we lose money?
Remember, this is your business. If you can't remain solvent, you need to look closely at the decisions being made. You truly can only spend what you have. We strongly discourage you from taking out business loans or using credit to fund your franchise. The best way to get more capital would be to attract more owners.
How do we vote and make decisions?
Once a fanchise has 5,000 owners, they will become an official member of the league. At this point, voting and decision making commence and introductions are made. |
