Question

^{The New York Yankees, one of the most successful sports franchise ever, has a common stock that is privately held. To finance its $800 million stadium, the franchise sought municipal bond funding. Given the long-term popularity of the team should the Yankees have sold common stock since most fans would want to own a piece of the legendary franchise?}

Answer 1

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Answer:

It is preferred to have issue equity - common shares rather than issuing municipal bonds

Reasoning:

Given that New York Yankees is one of the most successful sports franchise ever, common public will love to get a hold of issued shares vai equity. There will be no confusion or doubt in subsricibing the shares by the fans of the franchise and the common public. It is one of the easier ways to raise capital and also offering share to the pubic.

If we consider the latter (via bonds agreement) the franchise should think about regular interest payment on the bond and also about repayment of bond capital. It levered the franchisee performance, and the debt burden may increase in the future.