What is the "business of sports" and how do these companies make money?

The business of sports encompasses all commercial activities surrounding athletic competitions. Companies in this collection generate revenue through multiple channels: owning teams and venues, selling merchandise and equipment, broadcasting rights, ticket sales, sponsorships, and increasingly through betting platforms and digital fan experiences. The key advantage is that these businesses benefit from extraordinarily loyal consumer bases who engage with sports regardless of economic conditions.

How does sports betting factor into this investment theme?

Sports betting represents one of the fastest-growing segments within the sports business ecosystem. As more regions legalize sports wagering, companies that provide betting platforms, data analytics, and associated technology are experiencing significant growth opportunities. Several stocks in this collection (like DKNG and SRAD) are directly involved in this expanding market, while others benefit indirectly through increased fan engagement and viewership.

What are regional sports networks (RSNs) and why are they valuable?

Regional sports networks (RSNs) are specialized TV channels that broadcast games of local professional, college, and high school sports teams within a specific geographic area. Companies like SPHR that operate these networks own valuable broadcasting rights to live sports content, which remains one of the few types of programming that consumers still predominantly watch in real-time (with advertisements). This makes RSNs valuable assets despite changing media consumption habits.

How do team ownership stocks like MSGS and MANU differ from other sports businesses?

Stocks of companies that own professional sports franchises (like MSGS with the NY Knicks and Rangers, or MANU with Manchester United) offer direct exposure to team valuations, which have historically appreciated significantly over time. These businesses generate revenue through multiple streams: ticket sales, media rights, merchandise, sponsorships, and venue operations. Unlike pure retail or technology companies in the sports space, franchise owners possess unique, irreplaceable assets with strong brand loyalty and limited competition due to league structures.

What is esports and how does it relate to traditional sports investing?

Esports refers to competitive video gaming, where professional players compete in organized tournaments that are watched by millions of fans worldwide. Companies like MSGM, SLE, and GAME in this collection are developing the infrastructure, content, and platforms for this rapidly growing segment. While distinct from traditional athletics, esports follows similar business models: generating revenue through media rights, sponsorships, merchandise, and fan engagement. It represents the evolution of sports entertainment for younger, digitally-native audiences.

15 handpicked stocks

Global Stadium

Score big with companies that power the worldwide business of sports. These carefully selected stocks tap into the unwavering loyalty of global fanbases through team ownership, merchandise, media rights, and the booming sports betting industry.

Han Tan | Market Analyst

Updated 2 days ago | Published at June 17