How to Sell a Sports Team in Canada: A Guide to the Franchise Sales Process

Purchasing a sports team can be a thrilling opportunity, offering not just financial rewards but also the chance to be part of a rich sporting tradition. Whether you are looking to invest in a franchise in the International Baseball League or beyond, it’s important to understand the steps involved in the process. Here is a guide that will walk you through each stage, ensuring a smooth and transparent experience, and an overview of how the process works when it comes to acquiring a team.

Step 1: The Announcement

The first phase of the sales process begins with a formal press release. This document highlights the sale of the team, its history, and its value to the local community. The press release is distributed widely to media outlets, with a particular focus on local publications in and the surrounding cities. In addition, post the release on the teams website and social media channels to further expand the reach.

Step 2: Handling Inbound & Outbound Leads

Following the announcement, keep track of  all inbound inquiries. These typically come from interested parties who have seen the press release or media coverage. Make sure each inbound is carefully documented and be sure to follow up with each of them. At this point, you can begin outbound outreach to parties previously interested in purchasing teams within your network.

Step 3: Initial Outreach & Information Sharing

Once you’ve identified interested parties, the next step is to share the essential details about the franchise. Each potential buyer should receive an Information Package, outlining the team’s history, performance, community impact, and financial details. It would be wise at this point to  send out a formal document requesting interested parties to make a submission expressing their capacity to own and operate a team.

To maintain transparency and keep the conversation fluid, keep an open line of communication with  potential buyers. These conversations are an opportunity for you to answer any pressing questions and ensure that interested candidates understand the next steps.

Step 4: Selecting Top Candidates

After receiving expressions of interest, compile a short list of top candidates. These candidates are those who demonstrate a clear plan for long-term ownership. Set up video calls or in person meetings with these candidates to get to know them better and assess the potential fit.

Step 5: NDA & Proposal Submission

For those selected to proceed, the next step involves signing a Non-Disclosure Agreement (NDA). This protects the confidentiality of the franchise’s financial and operational information. Once the NDA is signed, instruct candidates to submit an official proposal.  You could even send candidates a proposal checklist which includes specific details about the team’s financials, long-term sustainability, and investment requirements.

Request information from the candidates, such as their financial capability, investment experience, and vision for the team. Carefully review these proposals and schedule presentations—either in person or virtually—where candidates can outline their plans for the franchise.

Step 6: Final Candidate Selection

Once the proposals are reviewed, facilitate meetings between the top candidates and the Board of the franchise. This final step ensures that both parties are aligned on the vision and future of the franchise.

A Smooth and Transparent Process

The process of purchasing a sports team may seem complex, but with the right guidance, it can be both manageable and rewarding. Cosmos Sports & Entertainment prides itself on managing each step of the sales process with precision and transparency. Whether you’re looking to buy, sell, or explore opportunities in sports franchise ownership, Cosmos is here to ensure that your goals are met.