Sports teams could become tradeable assets in the future, bringing previously unavailable options to investors in a new trend, according to an Abnormal Return report.
The National Football League is already big business in the U.S. with teams like the Indianapolis Colts turning down an offer of $3.2 billion, the Carolina Panthers sold for $2.275 billion and the Dallas Cowboys, the most valuable team in the league, estimated to be worth $5.5 billion.
Now the National Basketball Association is looking at ways to launch a fund that would purchase minority shares in individual teams in the NBA league, according to another Bloomberg report.
Such a fund would provide additional liquidity for the sale of team ownership interests, including by providing access to a new pool of long-term investors.
Skyrocketing team prices have made it impossible for small investors or even groups of investors to afford to buy teams that are put up for sale.
Listen to GHOGH with Jamarlin Martin | Episode 67: Jamarlin Martin
Jamarlin goes solo to discuss the NFL’s entertainment and “social justice” deal with Jay-Z. We look back at the Barclays gentrification issue in the documentary “A Genius Leaves The Hood: The Unauthorized Story of Jay-Z.”
“Being a passive sports team owner is really being the person who pays the most for good seats,” said Kendall Baker at Axios Sports.
“But owning a portfolio could be appealing for long-term money, and it’s only a matter of time before we get a league-managed or third-party fund/marketplace for these interests.”
Blockchain technology offering an opportunity to tokenize sports assets in a low-cost and seamless way, making them more tradeable among investors.
Among the sports, basketball is generally seen as a better investment opportunity than baseball, hockey and football.