Why Sports Teams Can Be a Better Investment than Big Tech

"MediaTalk" explores the growing importance of sports investments, which have evolved from vanity purchases to a legitimate asset class. Record-breaking transactions in leagues like the NBA and NFL underscore this transformation. A key focus is why sports teams are considered a durable asset class that will hold their value and continue to grow not just for the next five or 10 or 20 years, but possibly for the next 100. Unlike other investments, sports teams enjoy inelastic demand—fans remain loyal regardless of team performance, ensuring steady revenue. These unique characteristics make sports teams more attractive than even Big Tech stocks, which may not guarantee the same long-term stability and loyalty. The episode emphasizes the unparalleled ability of sports to captivate audiences, as seen with events like the Paris Olympics and the World Cup. This enduring appeal solidifies sports teams as valuable investments. The podcast also explores the role of US investors in global sports investments, especially in European soccer clubs. Over half of the Premier League teams have American owners, highlighting a strong US presence in the UK soccer scene. The conversation shifts to the impact of social media and technology. Social media enhances fan engagement and drives sponsorship values, while the sports technology sector sees growth in areas like sports analytics and collectibles. Finally, the episode touches on the burgeoning interest in women's sports, with rapid growth in valuations for women's sports teams. As the episode concludes, the guests discuss whether the sports investment market is in a bubble. While some believe it is, others see it as a period of price discovery, with valuations likely to rise before stabilizing. More S&P Global content: Scoring Profits: The Dual Benefits of Investing in Sports Featured experts: Iuri Struta, senior reporter at S&P Global Market Intelligence  Richard Berndes, associate media analyst at S&P Global Market Intelligence Kagan Credits: Host/Author: Mike Reynolds Producer/Editor: Sarah James www.spglobal.com www.spglobal.com/market-intelligence