In the ever-changing world of investing, sports-related stocks provide unique and intriguing opportunities for growth, diversification, and tapping into the passion of fans. Here are some top picks for investors eager to explore this dynamic sector and capitalize on the excitement surrounding sports:
Madison Square Garden Sports (MSG Sports)
MSG Sports is a unique opportunity to own a piece of an actual sports team. As the parent company of the NBA’s New York Knicks and the NHL’s New York Rangers, its success will ebb and flow with the performance of these franchises. The company also owns esports teams that are part of Counter Logic Gaming and Knicks Gaming, making it a well-rounded play for those interested in both traditional and emerging sports markets. With the Knicks’ return to the NBA playoffs back in 2020-21, the future looks promising for MSG Sports.
Manchester United (MANU)
Manchester United, with 1.1 billion fans worldwide, offers an attractive investment for sports enthusiasts. Despite initial struggles since its 2012 US public debut, the club’s future looks promising as match attendance and broadcast revenue start to rebound.
Manchester United is not only a soccer team but also has a strong business network, consisting of merchandise sales, sponsorships, and broadcast rights. The club’s global appeal extends its reach, enabling further growth in markets outside the UK. As Manchester United continues to develop its digital presence and explore new revenue streams such as esports, the potential for growth increases. The stock also pays a modest dividend, making it an appealing choice for investors seeking exposure to soccer and the broader sports industry.
Churchill Downs (CHDN)
As the organizer of the world-famous Kentucky Derby, Churchill Downs offers a unique investment opportunity in the growing sports betting industry. Besides its renowned horse-racing venue, Churchill Downs also operates multiple establishments featuring hotels, gaming, and gambling within Kentucky. Additionally, it owns TwinSpires, a leading online platform for horse-racing betting and sportsbooks. Investing in Churchill Downs represents a strong wager on both a prestigious sporting event and the flourishing sports betting industry.
World Wrestling Entertainment (WWE)
While some may not view professional wrestling as a serious sport, WWE has a devoted fan base and has consistently beaten the odds like a successful wager, delivering impressive market returns over the past few years. With a focus on media entertainment, WWE has a track record of creating personalities who achieve pop culture-level success. Chances are you’ve heard of Dwayne Johnson, who got his start with the company. WWE has also placed a bet on the TV streaming era, partnering with NBCUniversal’s Peacock service for the WWE Network. Although it may not enjoy the same prestige as other professional sports leagues, WWE’s ability to monetize its millions of fans is a gamble that has paid off handsomely and should not be underestimated.
In conclusion, these four sports-related stocks offer unique investment opportunities for those looking to diversify their portfolios with exposure to both traditional and emerging sports markets. With a range of options, including team ownership, event organizing, and media entertainment, there is something for every investor interested in the world of sports.
