BOISE - Boise State University announced today it will form a new corporation and sell shares to the public.
"We're now going to sell shares of stocks in the Broncos, in our team," said Gene Bleymaier, BSU Athletic Director.
But before you go out tweaking your financial portfolio – there are things you need to know.
It's about money. Boise State has projects it wants to do like adding more seats to Bronco stadium, but the money isn't there. So BSU started a nonprofit organization called Boise State Broncos Inc., and they're selling Bronco Stock, but you'll never see this stock on the New York Stock Exchange.
"We need to appeal to the passion of Bronco Nation," said Bleymaier.
With a slew of projects lined up to better Boise State's Athletic facilities, Bleymaier announced Wednesday afternoon his plan to fund them. One project on the docket is short 300-thousand dollars.
"We can't do it without the community. We need their help in every way shape or form," said Bleymaier.
They're hoping that help will come in the form of people buying Bronco Stock. Shares of that stock are sold through a new nonprofit organization called Boise State Broncos Incorporated.
"This will depict ownership in the Broncos, and we want all of our donors and boosters to become a part of the program and own part of our program," said Bleymaier.
But is there really any ownership?
"I suppose when you call something a stock it is misleading because it implies ownership. There is no ownership," said Certified Financial Planner Dave Petso. "This is not a stock in anyway shape or form. It won't trade, it can't trade.”
"You own a piece of the money that's in the company at any point in time, and you own the ability to come to the meetings and give your thoughts and suggestions on how it ought it be deployed. But as it is deployed it is gone as far as you're concerned," said Boise State Broncos CEO Jon Miller.
The goal, raise 20 million dollars by selling shares at 100-bucks a piece. Bleymaier says the stock does not earn you any privileges, it does not appreciate and stockholders do not receive dividends.
"But it also, hopefully gives them a feeling of ownership, a feeling of participation and that's what we're offer here, and a feeling of pride, that say, hey, I want to be a shareholder, I like what's happening there, I want to be a part of it," said Bleymaier.
Beyond the pride of contributing and a certificate showing ownership, along with an annual shareholders meeting, Petso says don't expect much more.
"It is just a fancy way of creating another fundraiser," said Petso. "But it's not an investment in anyway shape or form. You're just giving $100 to BSU. That's it. You really don't own part of the team.”
Bleymaier says the 12 man board is already selected. All of them long time contributors to the University. Bleymaier says these men are some of the University's best and most loyal contributors. Shareholders will have a chance to vote on changes on the board during the annual shareholder's meeting.
Those interested in buy stock can do so via a Web site that will be up by Thursday.
So far, the school has sold over 1,200 shares Boise State Broncos, Inc.
Boise State Broncos Inc. Board Members
Jerry Caven, Jerry Dancer, Allen Dykman, Richard Fedrizzi, Jon Miller, Allen Noble, Duane Stueckle, Milford Terrell, David Turnbull, George Wade, Larry Williams, Charles Wilson.
