How to Invest in the NFL

The National Football League (NFL) is a big business. The league generates an estimated $19 billion in annual revenue and is targeting an increase to $25 billion by 2027, driven by new media deals and other revenue sources.

The league's growing revenue and popularity likely have many fans wondering whether they can invest in the business side of the sport. Unfortunately, that's not possible at the moment because the NFL is a private entity, as are almost all the league's teams.

However, people interested in investing in sports stocks have several options to consider while they wait to see whether the NFL or any of its teams complete an initial public offering (IPO). Here's a look at how to invest in stocks like the NFL.

Is the NFL publicly traded?

Is the NFL publicly traded?

The NFL isn't a publicly traded company. It's a trade association with 32 member teams. The league has been a for-profit organization since 2015, when it gave up its tax-exempt status. However, the league doesn't retain its revenue. It shares the revenue it generates at a national level with member teams.

When will the NFL IPO?

When will the NFL IPO?

The NFL didn't have an initial public offering on the calendar as of early 2024. The league might never launch an IPO. While it's a for-profit organization, it's a trade association with 32 member teams that share nationally generated revenue equally. Because of its revenue-sharing structure, the league wouldn't be valuable to public investors.

How to buy

How to buy NFL stock

You can't buy NFL stock. However, you can invest in the business of sports. Here are some ways to invest in sports stocks:

Atlanta Braves Holdings

Atlanta Braves Holdings (NASDAQ:BATRA)(NASDAQ:BATRK) owns and operates the Atlanta Braves Major League Baseball club. The company also owns and operates a mixed-use real estate development, The Battery Atlanta, and the Braves' stadium, Truist (TFC 0.53%) Park.

Atlanta Braves Holdings became an independent publicly traded company in 2023 after its spinoff from Liberty Media Corporation (LSXMA -0.9%)(LSXMB -0.37%)(LSXMK -0.53%)(NASDAQ:FWONA)(NASDAQ:FWONK). The company generated over $570 million in revenue through the first nine months of 2023, with most of that revenue (over $525 million) coming from its baseball operations.

Madison Square Garden Sports

Madison Square Garden Sports (MSGS -0.36%) is a leading professional sports company. It owns the NBA's New York Knicks, the NHL's New York Rangers, and two development league teams (the Westchester Knicks and the Hartford Wolf Pack). The company also operates a professional sports team performance center (the MSG Training Center).

The company was formed in 2020 after its stock spinoff from Madison Square Garden Entertainment (MSGE -0.18%), which owns several well-known sports and entertainment venues, including Madison Square Garden. Madison Square Garden Sports generated a record $887.4 million in revenue in its 2023 fiscal year and $85.2 million in operating income.

Rogers Communications

Rogers Communications (RCI -0.21%) is a Canadian telecommunications and media company. It's the largest wireless service provider in Canada. It also owns several media and sports assets.

Rogers owns the Toronto Blue Jays baseball club, the Rogers Center, and Sportsnet (Canada's leading sports entertainment network). It also has a 37.5% interest in Maple Leaf Sports & Entertainment, which owns several sports and entertainment companies in Canada, including the NHL's Toronto Maple Leafs, the NBA's Toronto Raptors, and the CFL's Toronto Argonauts.

Rogers produced over $5 billion in revenue in the third quarter of 2023, including almost $600 million from its media division. Investors who want to buy one of these sports stocks can purchase shares in any brokerage account. Here's a step-by-step guide on investing in companies that operate professional sports teams.

Step 1: Open a brokerage account

You'll need a brokerage account before buying shares of any company. If you still need to open one, here are some of the best-rated brokers and trading platforms. Take your time to research the brokers to find the best one for you.

Step 2: Figure out your budget

Before making your first trade, you'll need to determine a budget for how much money you want to invest. You'll then want to decide how to allocate that money. The Motley Fool's investing philosophy recommends building a diversified portfolio of 25 or more stocks you plan to buy and hold for at least five years.

You don't have to get there on the first day. For example, if you have $1,000 available to start investing, you might want to begin by allocating that money equally across at least 10 stocks and then grow from there.

Step 3: Do your research

It's essential to thoroughly research a company before buying its shares. You should learn about how it makes money, its competitors, its balance sheet, and other factors to ensure you have a solid grasp on whether the company can grow value for its shareholders over the long term.

Step 4: Place an order

Once you've opened and funded a brokerage account, set your investing budget, and researched the stock, it's time to buy shares. The process is relatively straightforward. Go to your brokerage account's order page and fill out all the relevant information, including:

• The number of shares you want to buy or the amount you want to invest to purchase fractional shares.
• The stock ticker (BATRA or BATRK for Atlanta Braves Holdings, MSGS for Madison Square Gardens Sports, or RCI for Rogers Communications).
• Whether you want to place a limit order or a market order. The Motley Fool recommends using a market order since it guarantees you buy shares immediately at market price.

Once you complete the order page, click to submit your trade and become a shareholder in one of these sports stocks while you wait to see whether the NFL ever goes public.

If the NFL or one of its teams goes public, investors will follow a similar process to buy the IPO stock. If shares become available after an IPO, you would fill out the order page at your brokerage account with the designated stock ticker and submit your trade.

Profitability

Is the NFL profitable?

The NFL is a multibillion-dollar business. The league generated about $12 billion in national media revenue during the 2022 season, about 8% higher than the previous year. Total league-wide revenue was around $19 billion that year.

Although the NFL generates a lot of revenue, it doesn't keep that money. It shares its national revenue with the teams. They each received about $375 million in national revenue from the NFL for the 2022 season, so the NFL doesn't generate much profit at the association level.

The league is very profitable overall on a team level. According to Sportico, NFL teams collectively generated $4.4 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2022. The Dallas Cowboys made the most profit ($460 million); the Buffalo Bills were the least profitable ($65 million).

Should I invest?

Should I invest in the NFL?

You can't invest directly in the NFL or any of its teams currently. However, you can invest in the business of sports.

There are many ways to do that, including investing in companies that own professional sports teams (e.g., Atlanta Braves Holdings, Madison Square Garden Sports, and Rogers Communications) and those that benefit from sports (e.g., athletic apparel and equipment makers, like Nike (NKE 0.19%) and Under Armour (NASDAQ:UAA), or sports betting companies, like DraftKings (DKNG 4.96%).

Deciding whether you should invest in sports stocks is a personal preference. If you love sports, owning sports stocks allows you to own a piece of something you're passionate about. For instance, I bought some shares of Rogers Communications because it owns my favorite baseball team.

It can also help you make money since sports revenue is growing briskly, and franchise values are rising. However, if you don't care about sports, investing in sports stocks might not be right for you.

ETF options

ETFs with exposure to the NFL

Exchange-traded funds (ETFs) enable you to invest passively across many markets and themes. Unfortunately, there aren't any sports-themed ETFs, and the NFL not being a publicly traded company (and can't be owned by ETFs) makes it tough to use ETFs to invest in the NFL and sports.

However, there are some ETF options that sports fans can consider, including:

• Roundhill's Sports Betting & iGaming ETF (BETZ 0.34%): This ETF focuses on the fast-growing sports betting industry. It held shares of 33 gaming companies in early 2024, including DraftKings. The fund had a 0.75% ETF expense ratio.
• Invesco Leisure and Entertainment ETF (PEJ 0.36%): The ETF focuses on owning leisure and entertainment companies. It held shares of 31 companies in early 2024, including DraftKings and English soccer team Manchester United (MANU 0.06%). The ETF had a 0.58% total expense ratio.

Related investing topics

The bottom line on the NFL

The NFL is a large and growing business. Unfortunately, you can't invest in the league or most of its teams. However, there are lots of ways you can invest in the business of sports, including companies that own franchises in other sports. That enables sports fans to potentially make money from something they're passionate about.

FAQ