How to Establish Your Own Baseball Franchise

Establishing a Franchise

• 1

  Partner with an ownership group who shares the same vision with you. This includes agreeing on the location of a team, its league, the team's purpose, marketing and promotional ideas and other factors. Choosing the right partners and finding a viable location for the franchise are two of the most important factors in getting accepted by a league following several years of preparation.

• 2

  Apply for acceptance by a league. The major league level is the hardest for gaining approval because of the amount of money involved and the limited number of cities that can truly support a major league sports team. The affiliated minor league level is the second most difficult for launching a new franchise, depending on its classification, money and the location of the team. Independent baseball is the easiest way to get a franchise, however it is the most difficult for keeping viable.

• 3

  Select the ideal location for your team's headquarters. Choosing the right city or region is the most critical decision to the success of your franchise along with the terms for leasing your stadium. Your stadium's physical location is as important as your team's management structure.

• 4

  Negotiate stadium agreements with the city or the managing athletic commission. A new minor league stadium, depending on its amenities and seating, can cost between $30 and $40 million with stadiums housing MLB teams costing much more. Some cities may be willing to fund all or part of the project, but you will need exceptional negotiating skills, patience, persistence and a solid development plan demonstrating how the community will benefit. For example, a stadium project slated for Sugar Land, Texas anticipates a $7.7 million annual return on the public's investment over the next 30 years.

Building the Team

• 5

  Sign an affiliate deal with an MLB franchise. The most significant difference between affiliated minor league baseball and independent baseball is that a major league club assigns players to your team and hires the manager. Under this business arrangement, a major league team uses your minor league team as a developmental team for its players, therefore its policies and philosophies take precedent over your franchise's won-lost record and ticket sales.

• 6

  Hire a management team with a background in sports management. Typically, a minor league baseball team management includes a CEO/President who is often one of the owners, a general manager, a director of promotions and marketing, a director of sales and ticket operations and a director of community relations. The larger your operation, the more front office personnel needed.

• 7

  Scout, research and sign players if your organization chooses an independent baseball franchise. Generally, a league will have a list of players available and sometimes will have an expansion draft, applicable to the major league level also, to help the new establishment acquire talent. You can also attract qualified players by holding independent tryouts.

• 8

  Strengthen community involvement by allowing fans to pick your team's nickname via online voting. This can prove to be an excellent promotional opportunity, helping the community to embrace the new team.

• 9

  Perform community service projects to help promote the team. You can promote your organization and demonstrate its importance to the community by undertaking activities such as helping to raise money for cancer research, partnering with Habitat for Humanity, funding youth baseball organizations, holding special community days coinciding with home games and more.