The Pioneer League B's are seeking fan investment in Bay Area baseball as the A's depart Oakland.

• Last year, Paul Freedman and Bryan Carmel established the Oakland Ballers in the Pioneer League to maintain baseball presence in Oakland as the MLB's A's plan to relocate.
• The Ballers have received a $1 million investment from Freedman and a $5 million loan.
• The team is currently crowdfunding for additional funding, allowing fans to purchase equity.

Last June, Paul Freedman, a 45-year-old entrepreneur who has founded and sold five educational technology companies, decided to start a new venture - a baseball team.

Freedman, who moved to Oakland from Palo Alto at the age of 15, found solace in attending A's games at the Oakland Coliseum, particularly on $2 Wednesdays, as a way to socialize with classmates. When the A's announced their plans to relocate to Las Vegas last year, Freedman was devastated.

"Freedman stated in an interview with CNBC that being at right field in the Coliseum made him feel like he was part of a community again and helped him feel welcome."

In the past 30 years, Freedman has seen multiple professional sports teams leave Oakland, including the NBA's Golden State Warriors in 2019, the NFL's Raiders in 2020, and the MLB's Oakland A's, who will move to Sacramento before eventually settling in Las Vegas in 2028.

In June, Freedman texted Bryan Carmel, a friend from high school, with a provocative preamble: "I have a crazy idea."

The Oakland Ballers, or the B's, a Pioneer League team co-founded by Freedman and Carmel, debuted earlier this year with initial seed funding. However, the team, which is just getting off the ground, faces an uphill battle to establish a successful business model in Oakland, a city with significant crime challenges and nearly abandoned by professional sports.

The Pioneer League, an MLB partner league that doesn't have affiliations with pro teams like those in minor league baseball, immediately caught Freedman's attention because it's a platform for testing baseball evolution. Similarly, Oakland has earned a reputation for being at the forefront of innovative thinking in baseball, first during the 1960s and 1970s under owner Charlie Finley and later during the "Moneyball" era in the 2000s, which introduced analytics that have since been adopted in almost all sports.

The Pioneer League ends tied games after nine innings with a five-pitch home run derby. The league's computerized system allows players to challenge balls and strikes in real time. The B's have the league's first female player, pitcher Kelsie Whitmore.

Now, Freedman has another innovation in mind: a new investment model.

B shares

Freedman and Carmel have raised $3 million in outside financing from about 60 individual investors, in addition to investing $1 million and loaning an additional $5 million to the Oakland B's.

Freedman and Carmel are planning to establish a new valuation for their investment through a crowdfunded financing round of up to $1.235 million, which is the maximum amount permitted under Securities and Exchange Commission regulations for an entity that has undergone a review by a public accountant but not an audit.

The upcoming financing round will enable fans to acquire direct ownership stakes in the team. Although there is currently no market for trading team shares, Freedman and Carmel envision a future where this could become a reality. This distinguishes the idea from publicly traded Green Bay Packers stock, which is structured as a nonprofit.

"Freedman stated, "We're exploring the possibility of a dividend and secondary market. Shares will also include voting rights.""

A secondary market for team shares could enable monetization of shares beyond major transactions like team sales.

Nearly $8 million in investment interest has been expressed by over 3,500 people for the B's team through DealMaker, the crowdsource funding platform they are utilizing.

DealMaker's chief marketing officer, Jon Stidd, stated that out of all the campaigns facilitated by the platform that started with initial expressions of interest, this campaign has attracted the highest number of potential investors.

Stidd praised the B's fans in an interview, stating that their contributions to the community were a testament to their dedication.

The fundraising campaign will commence soon, and investors will have the opportunity to purchase shares on a first-come, first-served basis, similar to buying sneakers from the Oakland B's, as stated by Stidd.

Stidd stated that inquiries from local baseball and soccer teams have been sparked by the early interest in using DealMaker to raise funds.

"The Oakland Ballers are spreading the message," he stated.

Local challenges

The B's have sold $1 million in merchandise and secured 47 sponsors in their first year, with plans to use crowdsourced funds for general baseball operations, particularly marketing.

The team collaborated with Oakland city officials to allocate $1.6 million of their initial funding to renovate Raimondi Field in West Oakland, a historic baseball stadium site where Oakland's all-Black A-26 Boilermakers played before racial integration. The field had become so dilapidated that it was no longer suitable for even Little League games, according to Freedman.

In a workshop on keeping baseball in Oakland, Freedman stated that relocating a minor league team was not a viable option as it would only reinforce Oakland's reputation as a subpar location unworthy of hosting top-tier sports teams.

He must ensure that the flourish of B's in the story conveys a positive message, rather than a melancholic reflection of Oakland's past.

"Freedman stated that they do not believe they are replacing the Oakland A's, and they are equally saddened by the loss of the team as everyone else."

Freedman faces the challenge of convincing locals that Raimondi Park is a safe and enjoyable place to visit. Recently, The San Francisco Chronicle reported that agent Lonnie Murray, who is married to former A's star and Oakland native Dave Stewart, raised concerns about substandard housing in an area where players' cars were vandalized or stolen. In response, the B's relocated the team to a hotel in a safer area.

Recently, Raimondi Park was adjacent to a homeless camp in West Oakland. Revitalizing the area is crucial for both Freedman and Oakland, but it may also hinder fan recruitment. The park has a seating capacity of approximately 4,100 people. So far, most home games have attracted around 2,000 fans, which is slightly below average for Pioneer League attendance.

Despite the misconception among locals about the danger of the area, Freedman compared the neighborhood to Chicago's Wrigleyville and is working to promote the team and expand entertainment and dining options outside the ballpark through partnerships with local businesses.

"Freedman stated that Oakland has been receiving negative media coverage regarding crime. However, the perception can be changed by providing safe experiences."

The Oakland A's will need to be especially vigilant in alerting locals to their existence next season, as the team will no longer have the support of the Green Day singer Billie Joe Armstrong, who recently painted a B's logo over an Oakland A's logo in Toronto's Rogers Centre.

The B's have had a successful first season in the Pioneer League, which is 96 games long and ends on September 8. The top two teams from each half of the season make the playoffs, which start on September 10. The B's are currently 42-30 overall and 15-9 in the second half, putting them in contention for the playoffs.

"Having baseball in a town provides value, as Freedman stated," said Oakland. "If Oakland wants baseball, it should have baseball."