In The Future Every Asset Will Be Tradeable, Even Sports Teams

In The Future Every Asset Will Be Tradeable, Even Sports Teams

sports teams
Sports teams are a big business and command huge valuations. Despite this, even sports teams are becoming tradeable assets. Image: By Autumn Keiko

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.

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“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.