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ESPN

HOW TO INVEST IN SPORTS TEAMS

The contents of this article are not intended as a recommendation to buy or sell any securities.

In a difficult year across the globe, sports shined through like never before in 2020, conforming to new safety measures in order to provide live entertainment for a world largely stuck at home. Between the UFC creating Fight Island and the NBA forming a playoff bubble at the ESPN Wide World of Sports Complex in Orlando, teams and leagues worked together in new ways in order to salvage what they could of their seasons. With this, many fans undoubtedly strengthened their affinity toward sports and their favorite team(s) as they were a way to momentarily escape the harsh realities of the pandemic.

While television viewership was down, some may attribute this to the vast amount of sports offerings that became available concurrently throughout the year. No matter what the numbers tell, sports were a mental break for many in 2020. The Masters in November? Unusual, yes, but we welcomed any distraction from COVID-19 with open arms. The NFL and the NFLPA’s collaboration on testing and social distancing efforts proved highly successful in the face of the pandemic, as the 2020 season did not have any cancellations.

Now we are getting back to some sense of normalcy in sports. The Masters are back in April and the MLB started its season on time. Oddly enough, it will be a relief to see a game postponed due to inclement weather and not pandemic-related issues. With COVID headwinds largely in the rearview mirror for sports, the market appears primed to continue its growth trajectory.

NPD Group predicts the global sports market will be worth $626 billion by 2023 – a 33% increase from $471 billion recorded in 2018.

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