Legendary investments guru Peter Lynch famously said that it makes sense to invest in areas that you know through personal experience. Plenty might joke that according to that logic, they should be putting their money into football teams or horse racing. But many a true word is spoken in jest, and perhaps that’s not such a bad idea.
Sport is, after all, a multi-billion-dollar sector that reaches every nation on the planet. There are numerous types of sporting investments you can make depending on your budget and your objectives. In fact, if you invest in sports, you also indirectly motivate the players to play their sport with full spirit and to use their full potential on the ground.
Here are some that are worth considering if you look in the direction of investing in sports, these options are mentioned below:
- Buying shares in a team
- Investing in sports betting business
- Buy your team
- Collectables are memorabilia
- Publicly traded sports companies
- A health club franchise
- Minor leagues
These are some options to be considered and now let us explore them all a bit one by one. And here we will start with the very first:
1. Buying Shares in a Team
This is the simplest way in, and it is no different to becoming a shareholder in any other publicly traded company. Having said that, there’s not a huge choice, as historically, when teams like the Boston Celtics and the Cleveland Indians floated, it didn’t work out, and they soon went back into private ownership. Still, there are exceptions. Manchester United has been traded on the NYSE since 2012, Borussia Dortmund is on the Frankfurt Stock Exchange and Juventus is on Borsa Italiana, You can also own shares in the New York Knicks, as part of the Madison Square Gardens Sports Corp holdings.
2. Investing in the Sports Betting Business
There’s a saying that the only way to make money from gambling is to be the person collecting the wagers. Sports betting is big business, and it’s getting bigger with every passing week due to evolving legislation, both in the US and further afield in countries like India. The list of companies on https://sportsbetting.net.in/ that serve this sports-mad nation show just how buoyant the business is, and most of them are publicly traded. With events like Euro 2020, the Olympics and the T20 World Cup all on the horizon, the sportsbooks are set to have a bumper year.
3. Buy Your Team
You don’t need the wealth of Roman Abramovich to buy a sports team, at least not if you focus on the minor leagues. There are plenty of possibilities out there if you have a six-figure sum to invest, and if you go into it with three or four partners, you will need even less. Of course, there is an immense amount of due diligence to be done before you commit that sort of money, and you’ll need expert help every step of the way. Matt Perry runs a business called National Sports Services and provides exactly these sorts of consulting services.
He says the underlying market and the stability of the league are as critical for success as the talent within the team itself.
4. Collectables and Memorabilia
From baseball cards to stadium seats, sport creates endless amounts of memorabilia, and it all has value. Like antiques or rare books, you need expertise and passion to enter into this sort of investment. There are exceptions, but on the whole, it won’t make you rich. However, treat it as a labour of love that can occasionally turn you a profit, and you can’t go wrong.
5. Publicly Traded Sports Companies
Figuring out how to invest in the sports market in a better way than acquiring shares? Why not invest in a sports clothes or sport shoes making company? Many companies are open there making skateboarding, canoeing, football and volleyball. For example – Nike, Adidas, new balance, etc.).
If you think you are not comfortable with local brands, you can choose from global retailers like Footlocker or Dicks sporting goods.
Apart from sport apparel manufacturers, you have many other options for investment like investing in TV channels such as ESPN. For this, you need to buy Disney corp shares.
You can also buy shares of the companies constructing stadiums and sport event organisers.
6. A Health Club Franchise
Love fitness? Why not invest in it? Fitness lovers will love this investment idea as the industry is growing rapidly. Industry research from Los Angeles noticed a huge uprise in health club revenue in the last few years.
Health clubs are highly profitable but you need to be very careful before investing as they can give you a huge loss also. Before investing in this, you must ask yourself if you are ready to wear that jersey every day? How does the business model work? Are franchisees reachable? Will be able to exit if you want. ?
You must also know the art of differentiating your health club from another. The competition is very high outside. Better to include a social element in your club such as Pilates, Yoga, and boxing training, etc.
7. Minor Leagues
Not super-rich? But still, want to own a team? Minor league is the best option for you. Venture capitalists and institutional investors are putting financial deals together for ownership groups that focus on minor teams.
There are no rules and regulations for independent teams. Many investors love to own a small team and they get huge profits. Struggling hockey teams are available at very low prices as their attendance fall and debts increasing.
Investing in sports can be fun for sports lovers and yes, many get huge profits but one must consider all the things before investing as this field of investment can be highly profitable and can also give you huge losses, if not done smartly.
Choose which investment methods suits you the best before investing in sports the only thing you need to keep in mind is before choosing any method do keep in mind your budget and are there is kind of risks that you may face regarding the investment.