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How to Strategically Invest in Sports?

  • Watched by millions of people across the globe, sports investing is profitable if you know the right strategies to adopt.
  • Making money in sports includes, but not limited to investing in sports tech, buying shares of sports companies, and investing in sports apparel.

Sports investing is fast becoming an intelligible way of making money. Forget gambling! You need a whole lot of strategies if you want to make fortune investing in sports.

Over the years, more people have formed a likeness for sports investing due to its huge potentials. Sports is a big deal across the globe. Regardless of race, or region, people engage in sporting activities every day.

As an exciting and lucrative market, millions of people play, watch and invest in different sports activities every day. But before you go into sports investing, you should know that a lot of strategies are involved as these determine your profitability.

Do not confuse sports investing for gambling, you need the right strategies that will minimize your risks and enable you to get value for your investment. Find how to strategically invest in sports in this easy-to-follow guide.

What is Sports Investing?

Sports investing uses different techniques and data-driven approaches to leverage the sports market and receive profitable returns. Just like every other form of investment, the purpose of sports investing is to help you achieve financial goals.

The sports industry is a significantly profitable one, with billions of dollars generated every year in major sports leagues, apparel brands, athletic brands, and sponsorships.

It is difficult to put in figure the total revenue and profits that the global sports market generates annually. The reason is not far-fetched, there are many sports divisions, each generating overwhelming returns every year. Note some of the figures below;

  • As of 2018, the value of the sports industry is pegged at about $500 billion.
  • In 2018, the North American sponsorship market generated revenue to the tune of $17.17 billion. The market is also estimated to generate over $20 billion by the end of 2022.  
  • Also, the premier league which has the highest brand value of football leagues worldwide generated about 5.65 billion euros in the 2018/2019 season.

We can continue to name different sports with huge yearly turnovers and still not exhaust the list. Sports brands and athlete apparels are other areas people invest in.

However, investors who engage in sports investing often search for stable and predictable ways to generate returns on sports investments. This can be through professional football leagues, basketball leagues, athletic apparel, sports conglomerates, and sports sponsorships.

Whichever form of sports investing you choose, you must study is nitty-gritty and smartly invest in it. A detailed strategy is essential to sports investing.

If you desire to generate long-term profits in sports investing, you must know the type of investment, risks involved and the amount needed.

Different Strategies and Systems For Investing In Sports

It is important to approach sports investing strategically. There are a lot of statistics in sports, whether you have chosen to invest in football, baseball, ice hockey, volleyball, athlete apparel, sports brands, and other popular investment niches in sports.

The techniques you use determine how well you take advantage of bookmakers and make a profit. Sports investing does not entirely depend on luck, it is not gambling, so you need some level of understanding and statistical analysis to get it right.

In case you have not observed, sports is a big deal for millions of people across the world, so experts spend time churning out statistics every season or every year for the benefit of those looking to invest in sports. Below are some of the best strategies and systems for sports investing;

  1. Choose the right Investment
  2. What Kind of Investor are you? (Contrarian Investor, Momentum investor, or a ‘smart investor’?)
  3. Study the statistics of the sports you have chosen to invest in
  4. Use data tool tracks
  5. Know the risks in sports investing
sports investing

Strategies and Systems (Breakdown)

1. Choose the Right Investment

There are many types of sports you can invest in, but not all sports are for you. Individuals and corporate investors place their money in baseball, basketball, football, ice hockey, professional football leagues. Some people also invest in athlete apparel and reputable sports brand.

Approach sports investing by first picking a niche that aligns with your areas of interest, you can pick one or two niches. Choosing the right investment involves;

  • Knowledge about different sports categories or niches
  • Dedicating time to study niches you have formed likeness to
  • Reading trends and studying charts to know the level of risks involved
  • Knowing the calendars of seasons in the chosen sport.

2. Find the type of investor you are

Different people invest in sports for different reasons, you must identify the type of investor you are and how it aligns with your desired sports niche. While some investors take a contrarian position, others prefer momentum investing or smart investing.

  • Momentum Investing

These individuals follow the trends when investing, they care less about previous trends but are only interested in how a particular club or sports is doing in a season and choose to invest in it. Many sports investors are in this category, they follow moves in different sports and stake on them.

  • Contrarian Investing

These sports investors take the contrarian approach by investing contrary to the current market trends. They prefer investing in undervalued teams or sports to make long-term profits.

Not many investors are in this category because a lot more people prefer putting their money where they believe they would get immediate or short-term profits.

  • Sharp Investing

This strategy entails following the money. When investors take this approach in the sports market, they invest on “big players” who they believe are profitable and can fetch them huge returns.

3. Study Statistics

Statistics is very important in any form of investing, it helps investors improve their winning chances and percentage return on investments. For sports investors, several statistics are showing the performance of different clubs, sports brands, and leagues over the years.

Studying statistics helps you make informed investment decisions. Some of the websites to get weekly, monthly, bi-weekly, seasonal, or annual sports statistics are.

4. Use data track tools

The sports industry is so big that thousands of statistics are released every week, season, or year by different companies. It can be difficult to keep track of the statistics on your own, and this is why you need an external data tracking tool to keep the statistics in view.

As more people and groups continue to take interest in different sports over the years, the sports investment industry keeps expanding with no ending in view.

To keep track of the performance of different leagues, teams, and players, and how much money has been made over some time, you need a data track tool.

The tools will also enable you to monitor the successes and track records of a sports team or brand you are investing in.

5. Know the risks of investing in sports

This is an area where many people get it wrong in sport-related investing. Focusing only on the possible returns and ignoring the risks involved is bedrock to a failed investment. The following are important things to know in sports investing;

  • No investment is risk-free, not even sports investing
  • The higher the risks, the higher the return but taking low risks ensures safe investment
  • In sports investing, no team is infallible, so minimize risks when investing
  • Adopting effective strategies for sports investing can minimize the level of risks.

Are Sports Teams A Good Investment

Millions of investors around the world look out for sports teams to invest in and get significant returns. Sports teams are not only good investments, they hold the highest potentials in huge returns.

Every sport has a percentage it contributes to the overall revenue of the sports industry, but the sports that attract the largest global audience include;

  1. Football/Soccer
  2. American Football
  3. Baseball
  4. Tennis
  5. Basketball
  6. Ice Hockey
  7. Golf
  8. Formula

These sports are leading profitable investments for investors around the globe. Furthermore, these sports have produced valuable sports teams that thrive against all odds.

Despite the pandemic in 2020, 50 sports teams made it to the world’s most valuable team of the year. According to a Forbes report, the NFL produced the highest number of valuable teams, followed by the NBA.

The following sports teams are the top 15 world’s most valuable teams in 2020, with their net worth listed;

  • Dallas Cowboys (NFL) – $5.5 billion
  • New York Yankees (MLB) – $5 billion
  • New York Knicks (NBA) – $4.6 billion
  • Los Angeles Lakers (NBA) – $4.4 billion
  • Golden State Warriors (NBA) -$4.3 billion
  • Real Madrid (Soccer) – $4.24 billion
  • New England Patriots (NFL) – $4.1 billion
  • Barcelona (Soccer) – $4.02 billion
  • New York Giants (NFL) $3.9 billion
  • Manchester United (Soccer) – $3.81 billion
  • Los Angeles Rams (NFL) – $3.8 billion
  • San Francisco 49ers (NFL) $3.5 billion
  • Chicago Bears (NFL) – $3.45 billion
  • Los Angeles Dodgers (MLB) – $3.4 billion
  • Washington Football Team (NFL) – $3.4 billion

Similarly, in 2019, the NFL produced more than half of the 50 world’s most valuable teams, this shows the extent to which the league is lucrative. Sports teams are very profitable, but you must do your research and speak to an insider or an expert before choosing a team to invest in.

It is also important to note that the performance of sports teams varies from one season to another. This also determines their profitability, among other factors.

In addition to investing in sports teams, sports brands and empires are also profitable. Some of the most valuable sports brands in 2020 include Nike, Adidas, ESPN, Puma, Dallas, and Reebook.

The most valuable sports empire in 2021 includes Jerry Jones, Kroenke, Fenway Sports Group, and Yankee Global. Liberty media tops the list with $13 billion net value out of the accumulative $100 billion value of the 20 top empires.

Pros And Cons Of Investing In Sports

  • Investing in sports is profitable
  • There are different channels in sports in invest in and make huge returns, monopoly does not exist in sports
  • The availability of statistical analysis, data track tools, and other digital techniques makes sports investing more exciting and profitable for investors.
  • Lack of competition in major sports leagues is another bright side of investing in them.

Pros of Investing in Sports

More and more investors are looking for certainty and predictability when it comes to sports investing. While there is nothing like a 100 percent guarantee in any investment, knowing the pros and cons of sports investing will guide your decision-making.

Cons of Investing in Sports

  • Sports teams and brands not immune to economic shocks and downturns. The coronavirus pandemic in 2020 for instance, affected many clubs and sporting activities.
  • The economic outlook is a determinant for the demand for sports.
  • Just like any other business, scandals in sports can be detrimental and affect investments.

How Cryptocurrency Impact Sports Investing

sports investing

Believe it or not, cryptocurrency is significantly impacting investments in sport. Bitcoin and other cryptocurrencies have infiltrated every industry, including sports, with some sports clubs now accepting crypto as forms of payment.

Some teams in popular leagues accept cryptocurrencies such as Bitcoin for tickets and merchandise. Some sports brands, teams, and empires also accept investment from individuals or institutional investors in cryptocurrencies

The potential of cryptocurrencies in sports is not limited to investments as we may begin to see players being paid in Bitcoin and other cryptocurrencies. The use of crypto in sports investing also brings transparency, convenience, safety, and security to investors.

Conclusion

While sports investing is profitable, potential investors must be knowledgeable on different sports categories and where to place their money. Sport is a luxury for many people, before you make a big investment in sports, be sure of what you are delving into.

With high consumer demands, a huge fan base for many sports teams, and a lack of competition in major leagues, investing in sports presents positive prospects.

Sports are not immune to risks, it is essential you know the type of sports you want to invest in, and its pros and cons. Nevertheless, sports investing can pave ay for financial freedom is well harnessed.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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