When people think of “investing in sports,” the first thing that often comes to mind is placing bets, checking odds, and making spur-of-the-moment game predictions.
While sports betting is a common and exciting way for fans to connect with their favorite teams, it’s not the sole means of tapping into the vast potential of the sports industry.
In fact, aside from the usual betting avenues, investing in sports team stocks provides a more traditional and potentially secure path for those interested in diversifying their investment portfolios.
So, let’s delve into this guide to find out the top sports stocks to buy and how to buy.
Top 5 Sports Stocks To Buy
Madison Square Garden Sports
MSG Sports (NYSE: $MSGS) emerged as a distinct entity in 2020 following a spinoff, separating from Madison Square Garden Entertainment (NYSE:MSGE), the proprietor of iconic venues like Madison Square Garden and Radio City Music Hall in New York City, alongside other real estate holdings.
What makes this investment distinctive is that it offers a rare opportunity to claim a stake in a professional sports team.
MSG Sports stands as the parent company of both the New York Knicks in the National Basketball Association and the New York Rangers in the National Hockey League.
The upheavals caused by the pandemic in 2020 positioned MSG Sports as a potential bounce-back investment. However, its long-term success hinges on the performance of its two flagship franchises.
The Knicks made a resounding return to the NBA playoffs in the 2022-23 season, which could bode well for the company if the team maintains its competitiveness.
In addition to its traditional sports assets, MSG Sports also possesses esports teams affiliated with Counter Logic Gaming, competing in popular video games such as League of Legends, Fortnite, and Super Smash Bros. It further extends its reach by owning Knicks Gaming, an esports team in the NBA 2K League.
Nike (NKE)
NIKE, Inc. (NYSE: $NKE) and its subsidiary companies, are globally recognized for their expertise in designing, developing, marketing, and distributing athletic footwear, apparel, equipment, accessories, and related services.
This corporation offers a broad range of athletic and casual footwear, apparel, and accessories featuring prominent brands like Jumpman, as well as casual sneakers, apparel, and accessories under well-known trademarks such as Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell.
NIKE, Inc. is publicly listed on the New York Stock Exchange (NYSE), boasting an impressive trailing 12-month revenue of approximately USD$51.5 billion. With a dedicated workforce of 83,700 employees, NIKE, Inc. continues to make a significant impact in the global sports and fashion industry.
Manchester United PLC
For a more specific and focused investment in a particular sports team, take a closer look at Manchester United PLC (NYSE: $MANU), the corporate entity responsible for Manchester United Football Club, the UK’s most renowned team in the Premier League.
Situated in Manchester, this company not only handles the football-related aspects but also takes charge of the club’s commercial ventures, broadcasting rights, and merchandise operations, solidifying its substantial presence in the global sports business arena.
Super League Gaming, Inc.
The realm of esports has added an exhilarating dimension to sports and entertainment, with notable players like Super League Enterprise (NASDAQ: $SLE) making their stock market debut in 2019.
One compelling reason to consider a long-term investment in this company is its unwavering focus on the metaverse, a realm projected to surge by a remarkable 40% from 2021 to 2027, with an anticipated market value exceeding $340 billion by the end of this forecast period.
As an illustration of their forward-thinking approach, the company has already entered into a multi-year partnership with LiveOne, enabling the streaming of music festivals and other pay-per-view events.
Super League has further established a seamlessly interconnected ecosystem of services, encompassing activities like Roblox design, the creation of Minecraft worlds, and the facilitation of game sharing and streaming.
Churchill Downs Inc.
Churchill Downs Incorporated (NASDAQ: $CHDN) is primarily renowned for its iconic racetrack in Louisville, Kentucky, where the prestigious Kentucky Derby has been a staple in American sports for 146 years, attracting thousands of spectators.
However, the company’s revenue streams extend beyond traditional horse racing events, as it has ventured into online gaming and wagering through its platform.
Churchill Downs also holds ownership of 15 other top-tier racing properties and casinos, including the upcoming Newport Racing & Gaming, set to open on November 24.
Remarkably, even the challenges posed by the pandemic did not substantially impact the company’s financial stability, as indicated by its fourth-quarter report.
Bottom line
Investing in sports stocks can indeed be profitable, but it’s vital to remember that, like any investment, they come with their share of risks.
These stocks are susceptible to market fluctuations and changes in the sports industry, so it’s crucial to thoroughly assess your choices before committing your capital.
If you’re a newcomer to the world of investing or if it’s been a while since you’ve scrutinized your investment accounts, it’s wise to compare different brokers to ensure you’re enjoying the most advantageous features within your trading account.
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