Determining Value & Tracking The Market
So what determines a cards value in the eyes of collectors? Lets break it down.
All other factors held equal, cards released during a players rookie year will always be the most valuable. After that, second year cards will generally be more valuable than third year cards and so forth, with some notable exceptions .
As with any collectible, rarity is highly valued. With basketball cards, this can be easily ascertained thanks to serial numbers.
- Patches & autos
Cards with jersey patches and player autographs are both highly sought after. The holy grail for most basketball card collectors are rookie patch autos , which feature both a patch and an autograph on a single rookie card. The record-breaking Luka Doncic card that sold for $4.6 million was a one-of-one Logoman RPA from National Treasures.
- Condition / grade
Card condition is another extremely important determinant of value. Because condition is often in the eye of the beholder, collectors look to professional grading companies to act as an objective arbiter of condition and thus value .
There are lots of grading companies out there, with PSA, BGS and SGC generally considered the most well-regarded. The following graph depicts auction sales for graded 1986 Fleer Michael Jordan cards at each PSA grade.
- Player performance, health & accolades
- Legacy, public perception & cultural significance
Firstly, prices tend to dip in the offseason and peak during the playoffs.
- Tracking the market
The Pros And Cons Of Pe
Also, NBA valuations are skyrocketing. The average price of a club is now over $2 billion, and its last two franchises sold for an average of $2.45 billion when considering Nets owner Joseph Tsai paid $1 billion for the Barclays Center in Brooklyn in a separate deal.
Hence, the league needed to expend its investor base as even minority stakes are getting expensive.
“This provides the NBA, its member teams, its entire infrastructure with financial optionality,” said Chris Lencheski, the chairman of private equity consulting company Phoenicia and adjunct professor at Columbia University.
Allowing private equity investments will also help minority owners looking to sell and exit ownership groups. On the majority side, owners who want to recover from Covid-19 losses by can sell shares and benefit, too.
Lencheski, who also serves as CEO of Granite Bridge Partners’ Winning Streak Sports, sees the NBA’s global “economic moat” as a draw for investors as there’s unlikely to be any viable competition for high-level professional basketball. Plus the league is backed by global licensing, merchandise, sponsorship and approximately $2.5 billion in annual media rights income, which runs through the 2024-25 season.
But the move is not risk-free.
Addressing the NBA’s ratings slide at the 2019 Sports Business Journal Dealmakers conference, Silver described cable television model as “broken” and added league’s young viewers “are tuning out traditional cable.”
How To Make Money On America’s Sports Obsession
Henrik Sorensen / Getty Images
In case you haven’t noticed, sports are a big deal. Every day, millions of Americans watch sports in person or on TV, millions more take part in athletic activities, and countless more wear athletic clothing regardless of how active they are.
There’s a lot of money to be made in sports. But aside from those who work incredibly hard throughout their whole lives to become elite athletes, most of us won’t make a dime as a pro player. So how can the rest of us cash in on the popularity of sports?
There are many ways that average investors can make some money through sports. Here are a few.
Investing In Sports Stocks
By some estimates, the global sports industry takes in more than $1 trillion annually. The largest portion of that massive amount of entertainment spending is sporting goods retail, so stocks of companies that make and sell sports equipment and apparel are a great place to invest in sports. Esports are also a hot industry investment trend right now.
Most sports leagues and teams are privately owned. For a more focused bet on specific sporting events, leagues, and teams, here are seven companies worth a look right now:
|Churchill Downs||$8.7 billion||Organizer of the Kentucky Derby, owner of several gaming properties in Kentucky, and a sports betting platform.|
|World Wrestling Entertainment||WWE is a popular pro wrestling and entertainment league.|
|Madison Square Garden Sports||$4.3 billion||Parent of the New York Knicks, New York Rangers, a couple of minor league teams, and a handful of esports teams.|
|Rogers Communications||$27 billion||Leading telecom in Canada that also owns media assets, including part ownership of the Toronto Maple Leafs and the Toronto Raptors.|
|Liberty SiriusXM Group||$15 billion||A holding group that includes Major League Baseball’s Atlanta Braves, Formula 1 racing, and various media assets.|
How To Bet On Basketball: 5 Profitable Nba Tips For The 2023 Season
The NBA regular season is a grind, not just for players and coaches but for bettors and oddsmakers alike. There are 30 teams and an 82-game season in addition to a two-month-long postseason. Like any other major market, predicting the outcome of an NBA game is difficult. Here are some tips on how to bet on basketball this season.
Bet early: One of the best ways to gain an edge when betting on NBA games is to start betting as soon as the markets open each morning. If youre on the East Coast, that means you have to be available to bet around 8-9 a.m. In a market as big as the NBA, nothing slips between the cracks. Injury news, inefficiencies within the market, and lines that are off are corrected quickly as the sharpest bettors and betting syndicates in the world look to snatch up the value on NBA sides and totals before the value is sucked out of the line.
Study and React to Injury Reports: The impact of NBA injuries cant be understated when it comes to betting. Unlike football where there are 11 players on each side of the ball or baseball where there are nine players, a basketball team only plays five players at a time, meaning one player can have more impact on the game than in any other team sport.
Live Betting: Live wagering has become one of the most popular forms of betting, as it allows sports fans to place a bet after the game has already begun.
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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 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.
Foreign Investment An Option
Private firms can purchase the LPs and then sell them on the secondary market. If the NBA goes the private equity route, there will be guidelines in place, but it will lose some control on who the LPs are sold to.
Foreign investors could be a way for firms to make money on the LPs.
There is chatter that points to Middle East investors as future buyers of the minority shares. The NBA prohibits sovereign state investment in its teams, but investors from Abu Dhabi, Dubai and Qatar have been linked to the league before. In 2010, it was rumored investors were interested in purchasing the Detroit Pistons.
Lencheski added the NBA could also use the private equity investment vehicle to examine individuals who could look to buy majority positions in teams at a later date. The sports executive used Tsai’s entry as an example. He paid Russian billionaire Mikhail Prokhorov $1 billion for a 49% stake in the Brooklyn Nets in 2018 before taking full control.
Lencheski pointed to David Tepper’s entry into the National Football League as another example.
The NBA appears bullish on its product. Live sports still keeps the cable model from shattering. The league continues to produce international superstars to protect its economic moat — $8.3 billion in revenue. And the NBA’s credit is in good standing.
The NBA’s new focus is expanding the list of those seeking ownership accoutrements via private equity.
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Negotiate A Good Contract
The first step on the road to prosperity is making sure you get a fair deal during contract negotiations. You work hard to earn your team victories and you deserve to be justly compensated for that effort. Many agreements require the player to give up some money in exchange for other goods or services. It is important that you fully understand the trade-off you are making and the consequences of your decision. Although the team may offer you a lot of nice perks, at the end of the day its often best to just have cold hard cash.
Can You Invest In An Nba Team
An NBA team can be a profitable investment, but the risks are high. The average value of an NBA team has been increasing in recent years, and profits can be generated through ticket sales, broadcasting rights, and merchandising. However, teams can also experience large losses if they dont perform well on the court, and the league is subject to complex rules and regulations that can be difficult to navigate.
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How To Invest In The Nba
So you cant buy direct shares of NBA stock in your brokerage account. But that doesnt mean you cant invest in the NBA itself.
Exclusive partnership deals with the NBA are just as lucrative for companies, some of which are available to be traded on Wall Street.
Next time you are watching an NBA game on TV, take a look at how many companies have product placement and brand advertising during the broadcast.
Its everywhere. In fact, some of these companies are going to be seen in other sports as well. So that means theyre getting more air time than just with NBA games. Lets take a look at some of the best stocks to buy for investing in the NBA.
How To Invest In Sports Teams
The contents of this article are not intended as a recommendation to buy or sell any securities.
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 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 NFLPAs 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.
NPD Group predicts the global sports market will be worth $626 billion by 2023 – a 33% increase from $471 billion recorded in 2018.
New York Knicks
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Can You Buy Stocks Of The Nba
Yes, you can purchase stocks in the NBA. There are a few different avenues you can take to invest in the NBA. One is to purchase shares of the league itself through a website such as NASDAQ. You can also invest in the publicly traded companies that own teams in the league. Finally, there are a few private equity firms that have investments in multiple NBA teams.
Long Live Sports Investing
The pandemic had a deep impact on sports, but spectator events have made a big comeback. Investing directly in sports leagues and teams is one way to get a financial interest in this large and growing industry. The digitization of sports is opening up new options for monetizing athletic endeavors. Sporting goods, digital media, and esports are other promising ways to invest and could be a far more profitable endeavor over the long term. If a focused play on leagues and teams is what you’re after, these seven sport stocks are a good place to get started.
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Sovereign Wealth Funds Can Now Invest In Nba Teams
Posted on 12/01/2022
Global asset owners are becoming large players in the world of sports. Presently, Saudi Arabias Public Investment Fund formed the LIV golf tournament which competes within the PGA Tour. The Board of Governors of the National Basketball Association will allow sovereign wealth funds, pensions, and endowments to acquire passive stakes within their teams. In recent years, the NBA allowed private equity firms the ability to maintain ownership stakes in sports teams. In 2020, Blue Owl Capital Inc.s Dyal HomeCourt Fund had the ability to partake in minority equity stakes with NBA teams. The fund has stakes in the Atlanta Hawks, Phoenix Suns, and Sacramento Kings. The change enables the valuation of sports teams to increase as more buyers are able to access these teams. However, the basketball association maintains the capacity to deny any interested investor. Furthermore, they hold the ability to scrutinize each and every fund investor, thus allowing them the final say in if the investor can buy into the NBA or not. Sovereign wealth funds hold over US$ 10 trillion in assets under management, according to recent data from the Sovereign Wealth Fund Institute .
Sovereign wealth funds have actively been investing in leagues, sports infrastructure, and soccer teams. Presently, public pensions and sovereign wealth funds have indirectly accessed sports teams through various private equity funds:
Keywords: Ontario Teachers Pension Plan.
Why You Should Still Be Cautious
Of course, like any asset in the world, there are reasons to be skeptical.
Top Shot moments fall under the category of non-fungible tokens , which still face plenty of scrutiny. Can a purely digital asset hold its value over the long-term without something physical or tangible to back it up? This is a big question facing cryptocurrencies and is especially applicable to NFTs.
Theres also the matter of NFTs that have fizzled in the past. Before building NBA Top Shot, Dapper Labs created CryptoKitties, which is famous for its meteoric rise as well as its sudden decline. Today, CryptoKitties are worth a fraction of what they were at their peak.
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Nba Opens Its Investor Pool To Db Funds Endowments
As the value of sports franchises continues to soar, the National Basketball Association has widened its potential pool of investors by allowing pension funds, university endowments and sovereign wealth funds to purchase passive stakes in NBA teams.
The move follows the league’s earlier decision to permit private equity firms to buy passive investments in teams.
Earlier this year, Dyal Capital Partners, a division of Blue Owl Capital Inc., acquired a roughly 6% stake in the Atlanta Hawks, while Arctos Sports Partners LP bought a slice of the Utah Jazz in August. Dyal also owns stakes in the Sacramento Kings and Phoenix Suns.
Gordon Saint-Denis, Chicago-based managing director and head of sports finance at Monroe Capital LLC, a firm specializing in private credit markets with $14.1 billion in AUM, said by email that sports teams in North America have increased in value at a compound annual growth rate of about 20% annually over the last two decades.
Along with their rising value, sports investments are non-correlated to the S& P and other major exchanges, Mr. Saint-Denis noted. “As such, pension funds, sovereign wealth funds and others have been seeking approval to join in these investments,” he said. “It’s not a matter of prestige, it’s a matter of exposure to a new asset class to a lot of these investors.”