In a significant move for the sports industry in Mexico, the Diablos Rojos de México baseball team is preparing to raise additional capital through a follow-on offering after its recent market debut. The chairman of the company, Alfredo Harp Helu, announced plans to seek new funding and proposed changes to make shares more accessible to fans. This development highlights the potential for increased investment opportunities in Mexican sports teams.

Details of the Announcement

In the heart of Mexico City, on a vibrant Thursday afternoon, Alfredo Harp Helu, the owner and chairman of Diablos Rojos de México, rang the opening bell at the Bolsa Mexicana de Valores (Mexican Stock Exchange). Following this momentous occasion, he revealed that the company would pursue a substantial capital increase, pending regulatory approval. This decision comes shortly after the team’s direct listing on December 20th, which did not involve raising capital but marked an important milestone for the organization.

Harp Helu also expressed his intention to propose a 100-to-1 stock split to the board, aiming to make shares more affordable for the team's enthusiastic supporters. Currently, there are 623,000 A shares available. On its first day of trading, the company saw a 1.9% increase, closing at 1,650 pesos and achieving a market value of 1 billion pesos (approximately $49 million).

The chairman emphasized his hope that this listing would inspire other sports entities and companies to consider public offerings in Mexico. Since 2018, the country has experienced a notable decline in initial public offerings (IPOs). However, last February, Grupo Televisa SAB, a major pay TV operator, successfully spun off its Club América soccer team and gambling business, now trading locally as Ollamani SAB.

Harp Helu, known for his involvement in the banking sector—he co-purchased Banamex in 1991 and later sold it to Citigroup in 2001—was joined by Roberto Hernandez and Bolsa chairman Marcos Martinez at the event, underscoring the significance of this moment for both the sports and financial sectors in Mexico.

From a journalist's perspective, this initiative by Diablos Rojos de México signals a promising trend in the Mexican sports market. It demonstrates the growing interest in leveraging public markets to expand and diversify revenue streams. Moreover, it could pave the way for greater transparency and fan engagement in sports management, potentially transforming how teams operate and interact with their supporters. This move might well serve as a catalyst for broader changes in the sports financing landscape in Mexico.