Saving the Pittsburgh Pirates: Should the Pirates’ fans do what Green Bay has, buy their beloved team from Nutting and run it themselves? Packers have demonstrated that it can be done.

"The future looks bright," owner Bob Nutting said from the team's 
offices in the Titanic

Photo: Reality.com

“We’re owned by this community. We can’t be perceived as gouging the fans.”

Packers CEO Mark Murphy, a former player

Bob Nutting: Pirates “positioned to take another meaningful step forward” in 2019 [69 wins]

… do not laugh until you look closely at how the Packers do it

At first, Pirates fans will scoff at such a ridiculous assumption: How could the fans buy a baseball team that Forbes Magazine has valued at $1.26 billion?

The Packers have stockholders who are very minor to those who can own as much as 200,000 shares. This means that we could appeal to many people, including businesses and organizations, as long as it is community-owned. 

Here is why it could work. Nutting is putting nothing into a business that had an operating income last year of $273 million. If Nutting was gone and the community-owned the team, the numbers at the gate and the advertising revenue will skyrocket. 

Gate receipts were just 95 million last year when we were 27th in attendance, but if the community owned the team, families would plan trips to the park just to support that community. 

Not sure how the current recession/almost depression along with the shortened season, if one at all, will affect all this, but just thinking about it theoretically. 

Maybe after a year with no income, Nutting might be very willing to sell. After all, he will have to pay his players even if they do not play. They are under contract. 

Let’s look at the Packers

To understand how the Packers operate as a community team, and could serve as a blueprint for the Pirates in Pittsburgh, look at a little of their history from the team’s website,

Green Bay Packers Inc., has been a publicly owned, nonprofit corporation since Aug. 18, 1923, when original articles of incorporation were filed with Wisconsin's secretary of state.

One of the more remarkable business stories in American history, the Green Bay Packers organization has been kept viable by its shareholders — its unselfish fans. Even more incredible, the Packers have survived and thrived during the current era, permeated by free agency and the NFL salary cap.

Fans have supported the team financially through five stock sales: 1923, 1935, 1950, 1997 and 2011.

Today, 361,169 people (representing 5,009,562 shares) are owners of the iconic franchise.

The organization's fifth stock offering, which ended Feb. 29, 2012, was a tremendous success with more than 250,000 new shareholders becoming owners. For the first time in a Packers stock offering, international sales in Canada were issued for a short while and accounted for approximately 2,000 shares.

“Green Bay Packers Shareholders, 1923,” Packers.com, 2020

If the Pirates were to follow that blueprint, one share would be worth about $252. I would be willing to buy some shares, knowing that the return on the investment would be different from any other stock or bonds that I own, 

The corporation is governed by a board of directors and a seven-member executive committee.

Shareholders do not receive any dividend on the investment.

“Green Bay Packers Shareholders, 1923,” Packers.com, 2020

So, the dividend that you receive is your love for the team. How unique that is in this era of greed. 

How is that love expressed?

The offering in 2011

The money raised by its offerings is put right back into the franchise, like this,

More than 269,000 shares were sold during the offering that began Dec. 6, 2011.

All proceeds from the offering supported the expansion of Lambeau Field, a $146-million project that included a new distributed-audio sound system (2011), two new HD video boards and a new Bellin Health Gate on the north end of the stadium (2012), and approximately 7,000 additional seats in the south end zone served by the Shopko Gate (2013). To protect against someone taking control of the team, the articles of incorporation prohibit any person from owning more than 200,000 shares.

“Green Bay Packers Shareholders, 1923,” Packers.com, 2020

The NFL precludes any other teams from replicating the Packers

For whatever reason, the National Football League loves its system of greedy, incompetent owners because it can generate great amounts of revenue. The league orchestrated the Packer model out of its structure 60 years ago,

Unfortunately, the Packers’ ownership structure can’t be duplicated.

The National Football League (NFL) has formally banned any more Green Bay Packers-type ownership structures. Former commissioner Pete Rozelle changed the NFL constitution in 1960 to prevent another franchise from going to the Green Bay model. Article V, Section 4 of the NFL constitution, the “Green Bay Rule,” says that “charitable organizations and/or corporations not organized for profit and not now a member of the league may not hold membership in the National Football League.”

“Green Bay Packers Shareholders,” 1923, Packers.com, 2020

Why this could work in Pittsburgh — MLB interest dropping significantly

When he became majority owner of the team in 2007, he made a pledge, one that looks so hollow today,

"I understand how important the Pirates are to you, the fans, and this community. Like you, I believe there is absolutely nothing more important than for our team to be able to win, not just for one year, but on a consistent basis.”

Letter to Pirates fans from Robert Nutting, 2007

Consistent basis? He has violated that promise, and for good reason. 

Nutting has no reason to spend money on a payroll to produce a competitive team. He and the other buyers paid just $92 million for the team in 1996, and in 24 years, that is about a 55 percent profit. He has one of the nicest stadiums in baseball, though many fans are boycotting it at present. 

If the community owned the team, people would flock to it, and like the Packers, the team would keep the fans in mind when setting prices, according to a story from eight years ago,

“We could probably double home game revenue if we charged New England Patriot prices, but we have to think of our blue-collar base,” says Jason Wied, Green Bay’s vice president of administration and general counsel. “From time to time we make decisions that may not be in our best interest but are in the best interests of the community.”

“Green Bay Packers’ Ownership Structure Remains the 

Ideal,” League of Fans, April 6, 2012

After Nutting takes a bath this year, maybe the communities of Pittsburgh its surrounding locales in Western and Central Pa., Eastern Ohio, and Northern West Virginia could unite to make a Packers’ plan work. 

I am not certain if MLB precludes such an arrangement, but as the league starts to see revenue from the majority of its team dropping significantly, they may be willing to can Nutting and work out a community arrangement. 

Far-fetched? Maybe, but it is worth a look.