Sporting events have been around for thousands of years. For the vast majority of that time, they were largely spectator events, and, outside of gambling, only the organizers and the most talented contestants were able to make money from the games.
Today, it's possible to be an investor in a select number of publicly traded sports companies. Sports are more popular than ever, and new monetization opportunities are emerging and expanding rapidly. It could be a good time to take a swing at a sports-related investment.
Investing in sports stocks
By some estimates, the global sports industry takes in more than half a trillion dollars annually. The largest portion of that massive amount of entertainment spending is in sporting goods retail, so stocks of companies that make and sell sports equipment and apparel are a great place to invest in sports.
Most sports leagues and teams are privately owned. For a more focused bet on specific sporting events, leagues, and teams, here are seven companies worth a look right now:
Vail Resorts
NYSE: MTN
Key Data Points
Vail is a leader in mountain and winter sports. The company's namesake property in Colorado is a world-class destination for skiing, snowboarding, and other outdoor recreation, but Vail Resorts is actually a collection of 42 locations, mostly in the U.S. -- including the namesake Vail Resort in Colorado, Park City in Utah, and Northstar in California. It also owns Whistler Blackcomb in British Columbia and a handful of Australian resorts.
Besides selling tickets to its ski lifts, Vail also offers ski lessons, sells and rents winter sports equipment, operates as a resort, and makes money from dining and lodging. The COVID-19 pandemic deeply affected its business, but Vail has returned to posting consistent profitability and record revenue now that travel and recreation activity has bounced back.
2. Churchill Downs
NASDAQ: CHDN
Key Data Points
Six years after the U.S. Supreme Court deemed sports betting legal, more than half of all states now allow for sporting event wagers. Churchill Downs stock is a unique way to play this movement in tandem with the world-famous event it organizes every year, combining a horse-racing venue with gaming and casino operations.
Although Churchill Downs is best known for the annual Kentucky Derby, it has several facilities with hotels, gaming, and gambling in Kentucky. It also owns TwinSpires, one of the largest online horse-racing wagering and sportsbook platforms. For a top bet on a premier sporting event, as well as on the growth of the burgeoning sports wagering industry, look no further than Churchill Downs.
3. TKO Group Holdings
NYSE: TKO
Key Data Points
4. Madison Square Garden Sports
NYSE: MSGS
Key Data Points
MSG Sports is the product of a 2020 spinoff in which Madison Square Garden Entertainment (MSGE -2.01%) -- owner of the iconic venues Madison Square Garden and Radio City Music Hall in New York City, among other real estate investments -- became a separate company. It's a rare way to own a piece of a professional sports team since MSG Sports is the parent of the National Basketball Association's New York Knicks and the National Hockey League's New York Rangers.
Over the long term, this company's fortunes will ebb and flow with the success of its two primary franchises. The Knicks have returned to the NBA playoffs every year since the 2022-23 season, and the Rangers had a strong 2024 season that ended in the Eastern Conference finals. If both teams remain competitive, that will bode well for the performance of MSG Sports.
Additionally, MSG Sports owns esports teams that are part of Counter Logic Gaming, a league that competes in video games such as League of Legends, Fortnite, and Super Smash Bros. It also owns Knicks Gaming, an NBA 2K League esports team.
5. Manchester United
Manchester United's stock is an even more focused individual professional sports team play than MSG Sports. It's the parent of the U.K.'s most decorated team in the Premier League (soccer, which is better known as football everywhere else in the world except the U.S.). Manchester United is a huge franchise, boasting some 1.1 billion fans and followers worldwide.
Since making its 2012 public debut in the U.S., Manchester United stock has struggled to gain traction. Shares are up just over 33% (when you include reinvested dividends) since the stock started trading following its IPO, but shares could be quite cheaply valued on the heels of that underperformance. It may not be a rags-to-riches Wrexham story, but you, too, can start your own football empire like Ryan Reynolds and Rob McElhenney with some shares in Man United.
6. Rogers Communications
The next two companies on this list are less focused plays on sports events, venues, and teams, but they're nevertheless worth considering. Rogers Communications is one of Canada's largest mobile telecom and cable companies and is also a media company. Among its portfolio of assets are some sports team holdings.
Together with BCE (BCE +0.64%) (formerly Bell Canada), Rogers is a joint owner of Maple Leaf Sports & Entertainment -- the parent of the NHL's Toronto Maple Leafs, the NBA's Toronto Raptors, Major League Soccer's Toronto FC, and the Canadian Football League's Toronto Argonauts. Collectively, these assets make up a small fraction of Rogers' total financial results, but owning Rogers' stock is one way to own a small slice of the competitive sports world.
7. Atlanta Braves Holdings
NASDAQ: BATRK
Key Data Points
The Atlanta Braves baseball team is owned and operated by Braves Holdings LLC, which is a wholly owned subsidiary of Braves Holdings. The stock began trading on the New York Stock Exchange in July 2023 after Liberty Media spun off its stake in the Braves as a publicly traded company.
In addition to the Braves MLB team, the Braves Holdings LLC also includes the Battery Atlanta business -- which is a mixed-use commercial complex that includes hotels, retail outlets, residential real estate, office buildings, and entertainment businesses. The Battery Atlanta is located surrounding the Truist Park stadium that hosts Atlanta Braves games.
Pros and cons of investing in sports stocks
- Investing in sports stocks offers investors a way to gain exposure to sports and teams with high levels of engagement among viewers and attendees.
- Sports can generate high levels of revenue through events, broadcasts, and other monetization channels.
- Investors should understand that sports-related businesses can come with a high degree of complexity.
- Sports stocks won't necessarily perform well just because the popularity or revenue generated from a given sport or team is increasing.
How to invest in sports stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Related investing topics
Long live sports investing
Investing directly in sports leagues and teams is one way to get a financial interest in this large and growing industry. The digitization of sports is opening up new options for monetizing athletic endeavors. Sporting goods, digital media, and esports are other promising ways to invest, and they could be a far more profitable endeavor over the long term. If a focused play on leagues and teams is what you're after, these seven sports stocks are a good place to get started.
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