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For many people, sport is more than just a hobby. It’s a passion, a way of life, or even part of their identity. We often develop life-long affiliations with teams and support them through thick and thin, even if the going gets tough and they’re losing game after game.
But most of us know that sport is as much a business as it is a form of exercise and competition.
Huge industries have emerged that offer different services to fans to enhance their sporting experience. The most obvious is sports broadcasting, which sees companies charge subscriptions to people who want to be able to watch their favorite teams compete.
Others include the companies that offer sports betting, that make merchandise, or even that supply concessions to the stadiums.
If you’re a sports fan who also enjoys investing in the financial markets, you might be wondering how you can add some sport’s exposure to your portfolio. If that’s you, here are some options.
Sportsbooks
In sports betting, bookies offer fans the chance to test their skills and knowledge by making predictions on the outcome of games and whole seasons. This industry has recently exploded in the USA after States gained the ability to set their own rules around online sports betting, with many taking advantage of this new opportunity.
The result is that there is currently a race going on among bookies that are aiming to build a market share over their rivals. Many use huge promotions and bonuses as a tool for attracting customers. Competition is so strong in this area, sites like OddsChecker have been created to help fans choose which options are most suited to their betting preferences and to maximize the bonuses they can claim.
With rapidly growing revenues, it’s easy to understand why investors might want to get in on this action. Thankfully, most of the biggest bookies are publicly traded on US and/or European markets, so you can purchase shares with ease.
Leagues
In the US, most sports leagues are private businesses that you can’t directly invest in. In fact, the North American model is more of a collective in which the teams come together to pool their resources and manage the competition they take part in. This means that they are almost never available for average investors who want to purchase equity.
There are some exceptions, though. A notable example is Formula 1, which trades under the ticker symbols FWONA and FWONK on the NASDAQ.
If you desperately want to own part of a league, then one option might be to purchase a share of a team that has a stake in its main competition.
Teams
Even that is somewhat easier said than done. While there are hundreds of professional sports leagues in the top tiers of their disciplines, only a handful are available on public exchanges.
Some notable examples include Manchester United, the New York Nicks, New York Rangers, Atlanta Braves, Juventus, and the Toronto Blue Jays.
In some cases, like Borussia Dortmund and the Atlanta Braves, it is the team that is directly listed on the exchange. However, in other cases, like the New York Knicks and Rangers, you need to buy shares in the holding company to indirectly invest in the team.
Be careful though, some opportunities to buy shares have conditions that make them unattractive to investors looking to make a return later on. For example, the Green Bay Packers NFL team allows fans to buy a share in the team, but they cannot be resold for a profit and they pay no dividends. However, they do make a great piece of memorabilia.
Sportswear Manufacturers
Sportswear brands like Nike, Adidas, and New Balance spend billions each year on sponsoring teams, leagues, and athletes.
None of these manufacturers are doing this for charity. They expect a return on their investment. And given the fact that they’ve continued to plow huge piles of cash into almost every sport for several decades, it seems pretty clear that they definitely do receive a return.
That usually comes in the form of increased sales and profits, which can then be shared among investors.
Most major brands are listed on public exchanges, including Nike, Lululemon, Adidas, and Under Armour.
