It's a scam because the equity have any decision making power. It's still controlled by a small group of people aka the board of directors, the stock structure is setup that fans could not mount a hostile takeover. It's called ownership, but it's not, it has no value, it cannot ever be sold back, it doesn't grant you any say over how the team operates. The Packers are not a community owned organization, it's operates no different than any other NFL team, decisions are not made by the fans. The Packers aren't really community owned organization, a real community owned organization whose members have actual power over the organization. Those are very few and far between, are generally non profits, and in the end, no ability for outside investors to get the profits they're looking for, thus they won't bother to invest.
You hear from time to time small to mid sized business that are "employees owned and operated" but that doesn't mean every employee has the same equity, the generally ownership will have the largest stake anyway with employees having very little control or equity compared to ownership
>It's a scam because the equity have any decision making power.
Well there is no equity as there is no equity in any non profit corporation. That doesn’t make nonprofits a scam.
The shareholders elect the board and the board elects the officers and the officers control the day to day operations.
>It's still controlled by a small group of people aka the board of directors, the stock structure is setup that fans could not mount a hostile takeover
Well stockholders do get invited to the annual meeting and vote for a number of those directors.
You can claim all you want investor won’t invest when they can’t get their investment back, but again the Packers are proof you are wrong, no shareholder can recoup their investment much less make a profit, but they have no problem raising as much as $250M when they had their last 2 public offerings.
Edit: another example is the Gates foundation, supporters donate because the believe in the organization (like the Packers) yet supporters have even less rights than the Packers shareholders and obviously no chance of a “hostile takeover” and yet people “invest”/donate.
There's three ways to raise money. You can finance it (debt) or you can sell ownership (equity), or the last one, people can randomly throw money at you and expect nothing in return. The last method of raising funds are donations, those aren't an asset that can produce dividends, or earn interest, that's the opposite of an investment, it's an expense. A charitable one generally to get more favorable tax incentives.
Of course you can have equity in a non profit. That doesn't mean your entitled to profits that don't exist, it means you have a stake in the organization. And the # of outstanding stocks versus the # of stocks held by the general public is a tiny fraction of what the Packers are worth, but again those silly pieces of paper are not proof of equity or ownership, it's literally memorabilia fans traded cash for a piece of paper that says they own something even though they have no power of ownership, the annual shareholder meeting is for show, so to call it an investment like a traditional stock would be isn't fair, it's really not the same thing.
What you are describing is development office, going out to ask for donations for a cause. That's not the same as running a venture that's going to make profit for shareholders.
You hear from time to time small to mid sized business that are "employees owned and operated" but that doesn't mean every employee has the same equity, the generally ownership will have the largest stake anyway with employees having very little control or equity compared to ownership