As the world’s premier professional basketball league, the NBA has evolved into a multi-billion dollar global sports and entertainment business empire. With skyrocketing franchise values, lucrative media rights deals, extensive merchandising and global expansion efforts, the NBA provides plenty of attractive investment opportunities for those looking to get a piece of this vibrant and growing industry. This article will provide key insights on the various ways investors can gain exposure to the NBA’s success.
Purchase Equity Stakes in NBA Teams
Owning a stake in an NBA franchise is the most direct way to invest in the league. NBA team values have appreciated tremendously over the past decade, with even small market teams now worth over $1 billion. However, equity stakes in teams rarely become available and require deep pockets. Furthermore, being a minority owner affords little control over franchise operations. But for ultra-high net worth individuals, owning a piece of a team allows basking in the prestige and perks of NBA ownership.
Invest in Publicly Traded NBA Related Companies
Various NBA business partners trade on public stock exchanges. For instance, Nike has marketing rights agreements with the NBA and many of its star players. Madison Square Garden Sports owns the New York Knicks and New York Rangers. Furthermore, the NBA has equity stake in sports betting operators like DraftKings. Investing in stocks of such companies provides exposure to the NBA’s commercial success.
Buy Shares in a NBA Centric Equity Fund
Asset management companies like Fanatics Capital offer private equity funds focused exclusively on making investments related to professional basketball. Such funds acquire limited partner stakes in NBA franchises, invest in basketball startups aiming to work with the NBA, purchase equity in international basketball leagues, etc. For accredited investors, these speciality funds conveniently bundle various NBA investment opportunities.
Invest in NBA Related Startups
Various startups focus on catering specifically to the massive NBA fanbase by building novel technologies and products. For instance, Overtime produces original basketball focused content for Gen Z fans. ShotTracker provides sensors and analytics to improve shooting skills. Such startups rely heavily on relationships with the NBA to scale their business. Angel investing in such startups could provide significant upside if they manage to establish partnerships with the NBA.
In summary, the NBA’s surging popularity and revenues provide abundant investment possibilities. While direct equity stakes require deep pockets, public stocks, specialized funds and startups offer more accessible avenues to participate in the NBA’s bright future.