The National Basketball Association (NBA) is one of the most popular sports leagues in the world, and this is one of the reasons investors would like to invest in NBA stock.
Millions of fans tune in to watch the best players in the world compete on a nightly basis. But what many people may not know is if the NBA is a publicly-traded company or not.
In this article, we will explore whether or not you can buy your favorite NBA stock team, and answer some of the most common questions about NBA ownership.
Is the NBA a publicly-traded company?
No. The NBA is not a publicly-traded company, so you cannot invest in NBA stock. This can be upsetting for retail investors but there are other ways to allocate capital towards this sport.
Can you buy NBA player stock?
No. Unfortunately, you cannot buy stock in your favorite NBA player. Players are not considered a company entity themselves so there is no opportunity to choose a ticker symbol that represents your favorite athlete.
However, there are a few ways to get exposure for potential profits by investing in individual athletes.
NBA Topshot: One way to get involved with the NBA is through a product called NBA Topshot.
It is a digital collectible platform where you can buy, sell, and trade officially licensed video highlights of NBA players. These highlights are stored on the blockchain which allows for secure and transparent transactions between users.
The benefits of investing in NBA Topshot are that it is a more affordable way to get involved with the NBA, and there is a potential for resale value as the platform grows. The downside is that it is still a new product and there is no guarantee that it will be successful in the long run.
Can you buy stock in a sports team?
Yes. You can buy stock in a sports team, but the process is not as simple as buying shares of Apple or Facebook. There are different ways to invest in a sports team, and each method has its own benefits and drawbacks.
For example, you could purchase equity in the team itself by becoming a limited partner. This would give you a share of the team's profits and, in some cases, a say in how the team is run. The downside to this approach is that it can be difficult to get access to these types of investments and they can be quite risky.
How much do NBA sports teams cost?
The average value of an NBA sports team is $2.48 billion according to Forbes Magazine. The most expensive NBA team is the New York Knicks, which are valued at 5.8 billion dollars. Unless you or your business partners can come up with billions of dollars, you will not be able to own direct equity of a sports team.
Investing in businesses relating to sports teams
Another option is to invest in a sports-related business. This could be a company that manufactures sporting goods, a sports marketing agency, or a ticketing company. The benefit of this approach is that the investment is less risky and you can usually get a return on your investment more quickly.
However, it can be difficult to find these types of investments and they often come with high minimums. At the end of the day, there are many different ways to get involved with the NBA. It is up to you to decide which approach is right for you.
More alternatives to investing in the sports teams
As mentioned before, it can be upsetting for NBA fans to not be able to invest in NBA stock. However, there are other opportunities to invest within the industry. Here are a few ideas for you to take a shot at:
Investing in sports memorabilia
Fanatics is expected to make an IPO soon. They are the largest online retailer of officially licensed sports merchandise. They also have a partnership with the NBA which allows them to sell official NBA gear on their website.
The benefits of buying stock in Fanatics are that you are investing in a well-established company with a strong partnership with the NBA. The downside is that you are not directly investing in the NBA itself, and your investment may be more volatile than if you were to invest in the league directly.
If owning equity of the sports retailer is not for you, there are still potential profits to be made by owner NBA memorabilia items themselves. If you understand this market well, you can buy a rare item and sell it for a profit later on.
Here are some NBA memorabilia with high-price tags:
- The championship ring won by Metta World Peace (Ron Artest) was auctioned off for charity, raising over $500,000
- His 1978 All-Star ring was one of the lots up for grabs at the Julius Erving auction. This ring sold for a staggering $238,853
- Michael Jordan's Olympic converse shoes were auctioned for approx $190,00
These price points are high but you can still find arbitrage and profitable plays with lower ticket items. If you are not interested in buying memorabilia, there are still other alternatives to investing in the sports team.
Buying shares in the arenas and venues
One alternative is to invest in the arenas and venues where the games are played. For example, you can buy Madison Square Garden Sports Corp (NYSE: MSGS). This is an investment that will give you exposure to not only the NBA but also the NHL, WNBA, and other entertainment events that take place in MSG venues.
Buying shares in partnering companies
Another alternative is to invest in companies that have a partnership with the NBA. For example, Nike (NKE) has a partnership with the NBA that allows them to manufacture and sell official NBA gear.
Buying shares in broadcasting companies
If you are not interested in any of the aforementioned alternatives, there is always the option to invest in the companies that broadcast the games. Turner Broadcasting System (TBS) is one such company that has a multi-year deal with the NBA to broadcast games on television and digital platforms.
Does anybody own the NBA?
Members of the association own the NBA. There are several owners and they are the owners of the individual teams. If you are looking for direct equity ownership of the NBA as a whole, you'd have to buy an entire team. And that's only if you have the money and opportunity to do so.
Can you invest in NBA stock?
There is no NBA stock since the NBA is not a publicly-traded company. This means that you cannot buy NBA stock, of the league itself as a retail investor.
However, there are other ways to invest in the NBA that we discussed in this article. These investment options can come with risks, so do your research and find the best fit for you. It can be a fun side-hustle or minor investment that relates to a sport that you love.