Investing in Sports Stocks
As well as providing entertainment for people around the globe, sport is a multi-billion dollar industry. So, what if investors want in on the action? What are the best sports stocks to watch in 2024? In this article, we take a look.
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Best Sports Stocks to Watch
Sports stocks can refer to the shares of any company which is involved in the sports industry, meaning it can cover a wide variety of businesses.
Naturally, what constitutes the best sports stocks will depend on the individual investor and their investment goals. However, in the following sections, we will highlight some of the top sports stocks in terms of market capitalisation available to investors in 2024.
Manchester United
Manchester United is the largest publicly traded football club stock in terms of market cap and revenue, and is also one of the most successful football teams in the world.
Despite debuting on the New York Stock Exchange more than a decade ago, Manchester United shares have not gained as much as shareholders may have hoped. However, the football giant pays a modest dividend, with the stock yielding around 1.4% at the time of writing.
Currently, Manchester United is undergoing a period of transition, as new stakeholder Sir Jim Ratcliffe and his INEOS Group take over football operations for the club.
Madison Square Garden Sports
There are not many professional sports teams which are publicly traded, but the next sports stock on our list gives investors a fairly unique opportunity to gain exposure to multiple different teams with a single investment.
That’s right, Madison Square Gardens (MSG) Sports is a US holding company which owns not one but four US sports teams. Those teams include the New York Knicks and the New York Rangers, which play in the National Basketball Association (NBA) and National Hockey League (HNL) respectively.
The company was originally formed in 2010, after being spun off from Cablevision. In 2020, it subsequently spun off its non-sports assets, including the sports arena which bears its name, into a separate company, Madison Square Garden Entertainment.
MSG Sports is also a dividend paying sports stock, with a yield of around 4% at the time of writing.
Atlanta Braves Holdings
The Atlanta Braves are a US baseball team, which play in Major League Baseball (MLB) and are the oldest continuously operating professional sporting franchise in the country.
The Atlanta Braves are a subsidiary of Liberty Media, but was split-off from its parent company to become a separate publicly traded entity in July 2023, giving investors the opportunity to invest directly in the baseball team.
Formula One Group
The Formula One Group is a group of companies responsible for the organisation, promotion and which owns the commercial rights of the FIA Formula One World Championship.
Like the Atlanta Braves, the Formula One Group is a subsidiary of Liberty Media, but trades on the Nasdaq as a tracking stock, designed to track and reflect the performance of Liberty Media’s businesses which are attributed to the Formula One Group.
DraftKings Inc
DraftKings initially started as a fantasy baseball competition, but now operates fantasy sport contests in a range of other sports, including American football, football, basketball, and boxing.
Following a ruling by the US Supreme Court in 2018, states outside Nevada in the US begun to legalise sports betting and DraftKings capitalised on this by quickly moving into the industry. Since offering its first online sports betting services in New Jersey, it has expanded to 23 other states.
This is a company which is still growing, and could grow even further should more states decide to ease gambling restrictions. In the final quarter of 2023, the company’s Monthly Unique Payers increased 37% from the previous year.
How to Invest in Sports Shares
With an investing account from Admirals, you can buy shares in all the top sports stocks highlighted in this article. In order to get started, follow these steps:
- Open an Invest.MT5 account.
- Log in to the Dashboard.
- Open the web trading platform.
- Search a sports stock to invest in and click its symbol to open a price chart.
- Press ‘Create New Order’ enter the number of sports shares you wish to purchase and click ‘Buy’.
Investing with Admirals
As well as the sports shares highlighted in this article, an Invest.MT5 account allows you to invest in more than 4,500 stocks and over 200 Exchange-Traded Funds (ETFs). Click the banner below to register for an account today:
Top Sports Stocks - FAQ
Are any sports team publicly traded?
Yes. Although it is not that common, there are a number of professional sports teams which are listed on stock exchanges. This includes Manchester United, Borussia Dortmund and the Atlanta Braves.
Is investing in a sports team a good idea?
As with any investment, the answer to this question depends on not only the specific investment in question, but also the individual investor and their goals. It is important to always conduct independent research before making any decision and to only make investments which suit your personal goals.
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