The past year has been very difficult for all industries on the planet, including sports. However, they somehow managed to find a way to deal with new security measures just to provide live entertainment for those stuck at home.
Sports teams pushed their way through the situation and found a way to save what they could from their seasons. Teams are feeling the effects of the pandemic but have managed to fare perhaps even better compared to other industries.
This is another great indicator for investors since the sport has survived in the worst possible situation and from there there will be a steady uptrend.
In the sports industry, teams and clubs account for over 70% of the market value and their value has grown steadily over the past two years. The value of the global sports market in 2018 was $ 471 billion and experts predict it will grow to $ 626 billion by 2023.
The constant growth of the market and its scarcity attract many investors to this industry. Sports franchises are considered a premium asset, and since not all businesses are public, it is difficult to find an investment opportunity.
In today’s article, we’ll take a look at some of the best sports franchises you should consider investing in this year.
New York Knicks (MSGS)
Even though the New York Knicks currently hold the worst record in the past two decades, winning just two NBA championships in 1970 and 73, the franchise has a good return on its investment. The New York Knicks are not the most valuable publicly traded team in the United States with a value of around $ 5.4 billion. However, the lack of success makes this sports franchise a great investment opportunity.
Over the years, the Knicks have registered some of the greatest players in the NBA, such as Bernard King, Carmelo Anthony, Patrick Ewing and many more. On top of that, their iconic Madison Square Garden in Midtown Manhattan attracts millions of people every year, making them a ton of money just from tickets.
This franchise currently generates over $ 100 million per year in local media rights, and has a great chance of increasing its profits, making it a good sports franchise to invest in.
Stay up to date on the present and past of the NY Knicks, visit edge.twinspires.com/nba/trade-rumors/.
Manchester United (MANU)
Yes, we know it’s not the best season for the Red Devils even though they signed Cristiano Ronaldo. They are obviously on a difficult path in sacking Solskjaer after losing to Watford, but that doesn’t make the franchise a bad investment opportunity.
A good indicator that makes it a good investment is the popularity of the Premier League, which increased during the pandemic and became the most watched season, unlike the NFL and NBA where audiences declined.
Manchester United are currently the most valuable publicly traded sports franchise in the world and third in relation to all franchises just behind Real Madrid and Barcelona.
The majority of the shares are held by the Glazer family, which notably also owns the 2020 Super Bowl champion Tampa Bay Buccaneers which promises a bright future for the team.
Atlanta Braves (LSXMA)
Now on to MLB and a very interesting sports franchise that has quadrupled its value since 2010. The Atlanta Braves are a publicly traded team owned by Liberty Media. Liberty Media is a large global corporation that went public just to raise capital in 2015.
The team is also included in a holding company called Liberty Braves Group, which is not only a stock that tracks team finances, but also real estate development around the Atlanta Braves stadium.
The team is estimated to be worth $ 1.8 billion and it keeps growing every year. What is important to know is that, unlike common shareholders, shares of the Atlanta Braves have little or no voting rights at shareholder meetings.