In this article, we will learn how to make money from the sports craze in America. Sports are very important, as millions of Americans watch sports daily, whether in stadiums or on television, and millions more participate in sports activities and wear sports clothes regardless of their activity level.
Publicly Traded Sports Companies
The simplest way to get a stake in the sports world is by buying shares in publicly traded companies in this field. There are public companies involved in the sports footwear and apparel industry. You can invest in companies that manufacture sports equipment like helmets, balls, and shin guards. You can also own shares in companies that broadcast sports.
Sports Memorabilia
You may not have a hidden treasure of rookie cards under your bed, but it is possible to collect a valuable set of sports memorabilia that can be an investment. Sports trading cards, signed balls, team jerseys, and vintage sports artwork are all considered memorabilia. Even old seats from demolished stadiums have their value. All of these items are considered collectibles that can appreciate and even supplement or fund your retirement.
Owning a Sports Team
Yes, it would be really great to own a professional sports team. Think of the perks: access to top athletes, great seats at every game, a lot of revenue, and the potential for your team to one day be worth much more than what you paid for it.
But let’s be honest: there are very few major professional sports teams, and buying one requires a huge fortune. Consider that there are 122 teams in the NBA, NHL, MLB, and NFL. The lowest valued team, according to Forbes magazine, is the Arizona Coyotes in the NHL, valued at $285 million. When former Microsoft CEO Steve Ballmer bought the Los Angeles Clippers in 2014, he paid over $2 billion.
There may be ways for low-income individuals to participate in team ownership. Minor league teams, especially from smaller and independent leagues, are plentiful and more affordable than the four major teams.
Buying Shares in a Team
A few teams are publicly owned, allowing you to own a part of the team in the same way you might own a part of a company. The Green Bay Packers are a prominent example. The team has sold five million shares over the years. The last sale in 2011 raised enough money for the team to renovate its stadium and install a high-definition scoreboard.
Exercise caution before buying shares, as this may not be a good way to make money. For example, Packers shares are not considered a tradable security, meaning they do not have a ready market value. Moreover, the Packers organization is non-profit, meaning they do not distribute profits to shareholders in the form of dividends.
Health and Fitness Clubs
If you work out at a gym, it is likely that this gym is owned by a private company or a franchise. Fitness centers, including Planet Fitness, Anytime Fitness, Crunch Fitness, and WorkOut Anytime, capitalize on the growing demand for low-cost gyms with extended hours (many of which are open 24 hours). Other gyms include Orange Theory, which offers accompanying training sessions.
By purchasing a gym franchise, you are buying something that is ready and operational, heavily marketed by the parent company.
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The initial purchase costs for franchises can be prohibitive. Larger, more established companies with well-known brands will have a higher initial investment. You will also be responsible for brand fees and potential advertising fees that could reach hundreds of dollars per month.
Franchise opening requirements may be divided according to the total net worth of the investor and liquid assets. For example, Crunch Fitness requires franchise owners to have a net worth of at least $2 million, including at least $500,000 in liquid assets. While this may be a high barrier to entry, investors can pool partners to share in a franchise location together.
In addition to gyms, you can purchase a franchise for a personal training company like Gym Guys or a franchise for a workout program like Zumba or Jazzercise.
Source: https://www.thebalancemoney.com/beginner-s-guide-to-sports-investments-4588317
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