Investing in a sports team diversifies an investor’s portfolio and represents a sector where the investor may have little or no exposure. Rising valuations seem to be uncorrelated to on-field performance or broader market cycles.
Strong valuations exist. Forbes valued the 32 US NFL franchises at $108.3 billion. KPMG valued the top 32 European football clubs at €35.6 billion ($39.6 million).
The potential for outsized annual returns with limited downside risk exists. The indexed valuation performance of sports franchises and clubs has far outpaced the S&P 500 over the past 10 years and has done so dramatically for some leagues.
From 2010 to 2022, the average Forbes team valuation for the NBA, NFL and MLB soared 275%, far outpacing the 199% climb for the S&P 500.
Various ways to invest in sports are discussed in the webinar, including:
- Team ownership
- Publicly traded sports companies
- Sports betting stocks and funds
- Sports collectibles
The webinar addresses the opportunities, the challenges, profit potential and the bottom line for each approach.