Top Investment Opportunities in the Sports Sector

August 19, 2024 (Investorideas.com Newswire) The sports sector is a very dynamic field that's always changing with time and is filled with unique investment opportunities. This sector is expected to see its market balloon to over $600 billion by 2025, which shows that there's a lot of potential for realizing a profit from its growth.

Let us see the best investment opportunities that you can use to claim your share of the upcoming growth that this industry is expected to experience.

Team Ownership

One unique avenue that investors can use to make money in sports is acquiring a team. There are always teams up for sale in major league franchises such as the NFL or NBA, and even more opportunities in smaller, up-and-coming leagues that can become a significant financial asset in the future. The good news is that with sports being very popular, team valuations can skyrocket, as we've seen in recent years, with some teams starting to be worth billions. An example of this is how the Dallas Cowboys, which are known as the most valuable sports team in the world, are worth over $7 billion.

Owning a sports team can also offer investors revenue streams that pay out in the short term, such as broadcasting rights sales, sponsorships, game tickets, and team merchandise. Broadcasting deals are the most valuable revenue stream though, as broadcasting networks are willing to pay billions to show certain games. For instance, the NFL has secured deals with various broadcasting networks, which are projected to pay the league $100 billion over ten years.

Sports Betting

Another unique way to earn from sports is through sports betting, which has become a popular and rapidly growing investment and entertainment opportunity that many enjoy, especially in places where it is now legal. One of these places is the US, which saw sports betting getting legalized after the Supreme Court decided to get rid of the Professional and Amateur Sports Protection Act (PASPA) in 2018, which opened up a multi-billion-dollar market locally.

This meant that investors could now explore this market through numerous avenues, such as starting physical sportsbook establishments, and online betting platforms. Out of these two, online betting platforms have been the model that saw a lot of growth, which was driven by factors like the popularity of the in-play betting options they have and their convenience, which was brought by mobile apps.

Although sports betting was ruled legal in the USA nationwide, the availability of online sportsbooks still varies from state to state. Because of this, investors and bettors alike will often find platforms listing betting sites that US players can use, no matter which state they reside in. According to gambling expert Lewis Humphries, these sites offer a wide range of bet types and games that sports enthusiasts can use to maximize their chances of winning.

However, it is important to note that investing in sports betting as an online gambling operator and as a bettor comes with its risks. That's because even though wagering on sports can be highly profitable, it is also speculative, and you aren't guaranteed returns. As an operator, you also need to deal with the unpredictability of sports outcomes to offer reasonable odds, and you also need to stick to strict regulations.

Stadium and Infrastructure Development

Developing stadiums and related infrastructure is also a lucrative investment opportunity in the sports industry. With the demand for world-class modern facilities growing, many teams and cities are investing a lot in building new stadiums or upgrading the ones they have.

The rise of these projects has opened up investment opportunities in the construction, real estate, and related sectors. Additionally, on top of the immediate revenues investors can get from building these facilities, they could also get long-term returns through leasing agreements, hosting events, and selling naming rights.

Sponsorship and Advertising

Sponsorship and advertising remain core components of the sports industry, offering substantial investment opportunities. As brands continue to seek ways to reach engaged audiences, sports provide a unique platform for marketing. Sponsorship deals can range from naming rights for stadiums and arenas to athlete endorsements and team partnerships.

Investors can benefit from the growing trend of digital advertising within the sports sector. With the rise of social media and streaming platforms, companies are finding new ways to engage with fans. The global sports sponsorship market is expected to grow significantly, driven by the increasing popularity of sports events and the integration of advanced technology such as virtual advertising.

eSports

One of the industries that is growing the fastest in the sports sector is eSports. This industry has garnered a massive following with people who watch eSports numbering in the millions globally, which has changed eSports gaming from a niche hobby into one of the most lucrative sports. Currently, the eSports industry is expected to surpass the $2 billion mark this year due to revenues generated from viewers, broadcasting rights, and sponsorships.

For investors, there are various opportunities in the eSports ecosystem, such as buying or creating a team, buying media rights, or organizing events. Also, investors can invest in developing games or streaming platforms, or use the in-game advertising opportunities that are currently available.

Sports Technology and Innovation

Tech is getting integrated a lot more in sports these days, which has resulted in new investment opportunities in developing new technologies and or improving current solutions. For example, investors can get involved in creating wearable devices to track athletes' performance or in data analytics platforms to provide insights that can be used to refine game strategies.

There are also opportunities for investors to buy stocks from companies that develop sports-related technology. What makes these stocks a good option is that they're expected to rise rapidly due to an increased demand for basing decisions on data in many sports and in offering personalized fan experiences.

Merchandising and Licensing

Merchandising and licensing are also lucrative investment opportunities as there will always be fans who want to buy team apparel, branded products, and memorabilia, which is why there's a big market for licensed sports merchandise. Investors can use these opportunities by acquiring licensing agreements from sports teams, leagues, and athletes to manufacture and sell branded merchandise.

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