Fan Ownership Worked In Soccer, Can It Work Baseball?

September 30, 2009 by Joe Favorito · 1 Comment 

Last year the UK soccer club Ebbsfleet United tried a novel approach to resurrect the club. They sold shares that gave fans a voting portion of all club decisions. Not only did they make enough money to have the club be financially viable, the team had a bit of a resurrection on the field and almost got to the point where the success was being shunned by the local supporters who had followed the club and their middling success, or lack there of. over the years. Could Ebbsfleet become a business model for success elsewhere? Thus far, the answer has been no. Probably more because of the economy than anything else, few have tried to find the initial cash and all the other pieces needed to launch such a venture, and the value of most teams in the United States, even at the minor league baseball and hockey level. is still well outside the realm of possibility for public, or fan owned properties. The minors are still much more business, with smart businesspeople and pretty well off owners (even in small towns), than mom and pop these days. However, enter into the mix the group of entrepreneurs in Connecticut, who have looked below the minors into the college wood bat league for an opportunity to give fans their due. The story was recently reported in the local edition of the New York Times, and tells the story of how four young men are taking that Ebbsfleet model, through the digital space and the grassroots to buy a team with fans making the business decisions and putting the team in Torrington, Connecticut. the group has built the site, Our Baseball Heaven, as an homage to the fan, where for a small investment everyone can own the team…a fantasy sports comes to reality approach. Now the idea has its problems…there is limited commercial viability in the New England Collegiate Baseball League, the team and the town do not have the passionate club following of an English soccer team or even a minor league team that has long been a part of the community, and the town recently lost its minor league ties because of lack of support…but the overall idea remains intriguing. Perhaps for the right people looking for a low cost investment in sports, it could work as a labor of love and a way to get on the job training. However for that you still need the capital to get started, and in this economy the explanation of buying some shares without seeing any or little chance or ROI with discretionary income is a stretch. However even if it doesn’t work this time, there is an upcoming time limit for submissions and the entries have not been what is hoped for, it does leave the door open for a larger business plan for another team, or maybe even an owner for the day concept, at some independent franchise. Duplicating what was done with the perfect storm at Ebbsfleet is a difficult task, but for someone with the right plan and the right amount of grassroots support, maybe that Heaven can be created somewhere in an North American field or pitch or rink. All about timing. Just ask the Ebbsfleet folks.

Another Vision Realized: Ebbsfleet United

November 9, 2008 by Joe Favorito · Leave a Comment 

Like the Million Dollar Arm, another example of a unique idea riding a wave of popularity is the people’s soccer club, the UK’s Ebbsfleet United.  Almost a year ago, the idea was pushed forth in Portfolio and other places by an entrepreur to have a soccer team where fans could buy in and make the day to day decisions of the club.  As chronicled in the New York Times this week, the Ebbsfleet idea has worked wonderfully in the first year, with the club achieving onfield success never seen before while garnering over 30,000 “owners” who have a say in the business.  The idea worked this time because of a perfect storm of situations prior to the recent financial crisis…growing popularity of smaller clubs in Europe, a dearth of opportunities for fans to activate with larger clubs, fans frustration wih management, the emergence of fantasy play and a price point that made sense for people to try the idea with little downside.  Although most people aren’t active owners, the ability to participate does exist, and the club manager has basically run the team with little to no issue.  But the fantasy of ownership for the common man is real, and the amount of working capital the team got through the process was tremendous.  Now will there be commerical branding oppts. for Ebbsfleet going forward?  Can the success on the pitch be sustained when they become the hunted and not the hunter?  Can the “owners” not try and get overly involved?  Most importantly can the process be replicated successfully in minor league sports in the US like baseball?  All to be seen.  A few efforts to immediately repeat the process in soccer in the U.S. have not gone well, as the Ebbsfleet model is still based on a club with a 120 plus year history.  But the fact that it did work well once, with all the pieces falling into place in year one, shows that the effort, if managed properly, can be a successful run for those who take the time to find a property and grow with it.