Last year was very difficult for every industry on the planet, including sports. However, they somehow managed to find a way through confronting new safety measures just to provide live entertainment for the people who were stuck at home.
Sports teams have worked their way through the situation and found a way to salvage what they could of their seasons. Teams are feeling the effects of the pandemic but somehow managed to pull through maybe 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 here on there will be a constant upward trend.
Within the sports industry, teams and clubs comprise more than 70% of the market value and their value has constantly grown over the past couple of years. The global sports market worth back in 2018 was $471 billion and experts predict that it will increase to $626 billion by 2023.
The constant growth of the market and its scarcity attracts many investors to this industry. Sports franchises are considered a premium asset, and since not all businesses are public, it is hard to find an opportunity for investing.
In today’s article, we will take a look at some of the best sports franchises you should consider investing in this year.
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New York Knicks (MSGS)
Even though the New York Knicks currently hold the worst record over the last two decades only winning two NBA Championships back in ’70 and ’73 the franchise has a good return on investment properties. The New York Knicks isn’t the highest-valued publicly-traded team in the United States with a worth of around $5.4 billion. However, the lack of success makes this sports franchise a great investment opportunity.
Over the years, the Knicks rostered 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 each year making them a ton of money only from tickets.
This franchise currently generates over $100 million annually in local media rights, and they have a great chance for increasing their profits which makes it a good sports franchise to invest in.
Keep yourself informed about the NY Knicks present and past, check out edge.twinspires.com/nba/trade-rumors/.
Manchester United (MANU)
Yes, we know that this is not the best season for the Red Devils even though they signed Cristiano Ronaldo. They are obviously on a rough path sacking Solskjaer after losing against Watford, but this doesn’t make the franchise a bad investment opportunity.
One good indicator that makes this a good investment is the popularity of the Premier League, which increased during the pandemic and became the most-watched season, unlike NFL and NBA where the viewership decreased.
Manchester United is currently the most valuable publicly-traded sports franchise in the world and third compared to all franchises just after Real Madrid and Barcelona.
The majority of stocks are owned by the Glazer family, who notably also own the 2020 Super Bowl Champion Tampa Bay Buccaneers which promises a great future for the team.
Atlanta Braves (LSXMA)
Now we move to MLB and a very interesting sports franchise that quadrupled its value since 2010. The Atlanta Braves is a publicly-traded team owned by Liberty Media. Liberty Media is a big global corporation that went public just to raise some capital back in 2015.
The team is also included in a holding called Liberty Braves Group, which is not just a stock that tracks the finances of the team, but also the real estate development around the Atlanta Braves stadium.
The value of the team is estimated at $1.8 billion and it constantly grows every year. What’s important to know is that, unlike common stockholders, Atlanta Braves stocks have little to no voting rights at shareholders’ meetings.