Sports investing has been around since the 1920s, believe it or not. Athletic apparel and media conglomerates are derivative businesses affiliated with professional sports leagues. Also, more impressively, professional sports leagues are multi-billion dollar industries.
While this type of investing is far from risk-free, we know that that there are tons of financial benefits. Crowds don’t stop spending when they leave the stadium; purchase endless appeal, they renovate entire rooms, pay for distribution channels, and lay down major money for executive spending. Brand loyalty tends to be generational, and this is great news for those interested investing in sports teams.
Read on to learn about three types of sports investment to consider:
Own Your Own Minor League Team
Hockey, soccer, football, lacrosse, and rugby minor league teams aren’t too expensive. There’s a belief that you have to be wealthy to invest in sports. However, you can claim ownership of a minor league team, a simple summer-only, wood-bat minor league baseball team made up of college players, for a small amount. For as little as $100,000 to $250,000, you can own a team –and if you partner with others, you can manage to only be on the hook for a $50,000 commitment. With that in mind, baseball teams may be a bit more expensive.
Purchase Shares of A Publicly Traded Team
Share-owning a publicly traded team isn’t the most popular way to invest, likely because it isn’t listed on an exchange and it doesn’t pay any dividends. The value for many is the stock certificate investors will receive, as well as opportunities to attend annual shareholder meetings. There’s also an acknowledgment of contribution.
Invest in Apparel and Retail Stocks
Publicly held sporting goods stores and brand name apparel companies usually provide a high level of service and it’s usually swollen with customers searching for new attire. This demonstrates an inarguable interest in apparel. These opportunities offer great returns, dividends, and apparel.
Some other things you may want consider as investment options are the ownership of health club franchises and investing in collectibles.
What are your thoughts on sports investment? Do you have any other ideas about investing in sports?