In 1922 the Green Bay Packers football team was on the verge of bankruptcy. Four fans took over the team and re-organized it as a non-profit corporation. A 15-member board of directors was chosen by local shareholders. The corporation, with the help of the city government and local school board, built a stadium.
When the Great Depression came the team again went into bankruptcy. But rather than close, the corporation convinced local business owners to sell shares of stock to local residents in order to generate enough money to keep the team in operation. As of 1998 1,915 stockholders owned 4,634 shares of stock, and 60% of the stockholders live in Green Bay. Stockholders can trade stock within their family or sell stock back to the corporation for the original $25 sale price, but no individual can own more than 20 shares.
Since the Packers are a non-profit corporation, the stockholders do not receive dividends, but they do select the board of directors. When the team has a financial surplus, it is invested in the stadium and/or players. When the team has a deficit it can sell additional stock shares to make up the difference. Every single Packers home game from 1958 to 1998 was sold out. Should the team ever shut down, all of its assets must go to the local chapter of the American Legion. Local charities operate all concessions in the stadium and they earned $400,000 in 1995.
When the Great Depression came the team again went into bankruptcy. But rather than close, the corporation convinced local business owners to sell shares of stock to local residents in order to generate enough money to keep the team in operation. As of 1998 1,915 stockholders owned 4,634 shares of stock, and 60% of the stockholders live in Green Bay. Stockholders can trade stock within their family or sell stock back to the corporation for the original $25 sale price, but no individual can own more than 20 shares.
Since the Packers are a non-profit corporation, the stockholders do not receive dividends, but they do select the board of directors. When the team has a financial surplus, it is invested in the stadium and/or players. When the team has a deficit it can sell additional stock shares to make up the difference. Every single Packers home game from 1958 to 1998 was sold out. Should the team ever shut down, all of its assets must go to the local chapter of the American Legion. Local charities operate all concessions in the stadium and they earned $400,000 in 1995.
