What Sports Teams Can You Actually Invest In?

While the direct ownership of a major professional sports team remains an ambition largely out of reach for most individual investors, various accessible pathways exist to gain financial exposure to this growing industry. These avenues offer different levels of directness and liquidity, ranging from publicly traded entities to more alternative investment structures. Understanding these distinct approaches allows investors to participate in the sports economy without needing the substantial capital required for outright team acquisition.

Publicly Traded Sports Entities

Direct investment in a single professional sports team’s stock is rare, as most teams are privately held. However, it is possible to invest in companies that either own multiple sports teams or operate as broader sports and entertainment conglomerates. These entities offer shares on public stock exchanges, making them accessible through standard brokerage accounts.

For instance, Atlanta Braves Holdings, Inc. (NASDAQ: BATRA) allows investors to gain exposure to the Atlanta Braves baseball team. Similarly, Madison Square Garden Sports Corp. (NYSE: MSGS) owns the New York Knicks basketball team and the New York Rangers hockey team, providing a way to invest in these franchises through a publicly traded parent company. Beyond American leagues, international football clubs like Manchester United (NYSE: MANU) and Borussia Dortmund (BVB on the German exchange) are also publicly traded. These companies generate revenue not only from team performance but also from media rights, stadium operations, and other related business ventures.

Some larger corporations, such as Rogers Communications (NYSE: RCI), a Canadian telecommunications and media conglomerate, own sports teams like the Toronto Blue Jays, Toronto Maple Leafs, and Toronto Raptors. Additionally, companies like TKO Group Holdings (NYSE: TKO) offer exposure to combat sports by owning organizations such as the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). Investing in these publicly traded entities provides a regulated and relatively liquid means to engage with the financial performance of sports franchises.

Indirect Investment Through Sports-Related Companies

Beyond direct or corporate ownership of teams, investors can gain significant exposure to the sports industry by investing in companies that operate within its broader ecosystem. These businesses do not own teams but provide essential services, products, or platforms that underpin the financial success of sports. This approach offers diversification across various segments of the sports economy.

The sports media sector includes companies involved in broadcasting, streaming, and content creation. Large media conglomerates, which often hold lucrative broadcasting rights for major leagues and events, allow investors to benefit from the growing consumption of sports content. Another significant area is sports apparel and equipment manufacturing, where companies design, produce, and distribute athletic wear and gear. Well-known brands produce footwear, clothing, and specialized equipment.

Sports betting and gaming is another distinct investment category. Numerous publicly traded companies operate online sportsbooks, casinos, and fantasy sports platforms, capitalizing on the increasing legalization and popularity of sports wagering. Furthermore, businesses focused on sports technology, ranging from performance analytics to fan engagement platforms, represent an evolving segment. Event management companies and those owning or managing sports venues also provide indirect exposure, benefiting from ticket sales, concessions, and sponsorship revenue generated by live sporting events.

Alternative Investment Avenues

For investors seeking less conventional or more direct entry points into sports, alternative investment avenues have emerged. These methods typically cater to sophisticated investors or leverage innovative financial structures to broaden access to sports-related assets. The accessibility, liquidity, and regulatory frameworks for these options differ considerably from traditional stock market investments.

Private equity funds represent a significant pathway for accredited investors to gain stakes in sports franchises or related businesses. An accredited investor typically meets specific financial criteria, such as a certain income or net worth, or holds specific professional certifications. These funds pool capital from multiple investors to acquire minority or majority interests in teams, often with a long-term investment horizon and limited liquidity, as private equity investments are not traded on public exchanges. For example, some professional sports leagues have recently amended their rules to permit private equity funds to hold minority stakes in teams, usually with specific limitations on ownership percentage and governance rights.

Fractional ownership platforms offer another alternative, allowing individuals to purchase small, divisible stakes in high-value sports collectibles or memorabilia. These platforms tokenize or securitize assets like rare trading cards, game-used equipment, or other iconic items, making them accessible to a wider range of investors with minimum investments potentially ranging from $1 to $500. While these investments provide exposure to the appreciation of unique sports assets, liquidity may vary depending on the platform’s secondary market. An emerging area within fractional ownership involves investing in athletes’ future earnings or contracts, where investors provide upfront capital in exchange for a percentage of an athlete’s future prize money, salaries, or endorsement deals. These innovative structures aim to democratize access to sports investment.