Fusing passion and profession is a guaranteed formula for making it big in life. Similarly, investing in domains you are passionate about or genuinely interested in is a time-tested trick to improve your odds of making more profits.

You see, investment isn’t as passive a hobby as outsiders think. You need to know about the industry or domain you invest in and must be actively involved to ensure your portfolio doesn’t go belly up and that your returns remain lucrative. And being involved in something you don’t really care much about is not easy.

Contrarily, reading about or following up on things you like or sports you love never feels like a chore or obligation, making active involvement easy and ensuring you stay in the know about the latest happenings in the market. And, roughly speaking, that’s all you need to invest mindfully and succeed as an investor.

Why is investing in sports a good thing?

Even though it may seem odd to read something like this in an article about sports investment, the truth is that not everything in investment is about profits. The benefits of investing in sports extend beyond our wallets; it serves society and the community at large. 

Sports have a way of bringing people together and bridging differences. It promotes inclusivity and diversity, helping people set aside what makes them different and focus on what they share in common: an unparalleled love for the game.

So, investing in sports is, in many ways, an active contribution to fostering a culture of inclusivity and diversifying your community.

That’s not all. Think about its impact on youth development. Sports act as a launchpad for young athletes, providing them with an opportunity to follow their passion and use their natural talents to create a quality life. Not to forget, discipline and character development are two other important traits people involved in sports learn on the field.

Then, there are the economic benefits of sports. It is like a vast universe, with multiple sectors within it, each serving as a means of employment for countless people, whether involved on the field or behind the scenes.

What about money?

Sports serve both individuals and the community in many ways, but the social impact isn’t what the majority sign up for. The charm of the industry lies in its incredible growth potential and its ability to make you rich overnight. 

In numbers, the sports industry is worth around 500 billion USD and is projected to exceed 650 billion USD by 2028 and reach 900 billion USD by 2033. The secret? A myriad of revenue streams. From lucrative sponsorship deals and merchandise sales to broadcasting rights, there are many ways to make money in sports. 

Then there’s its high and explosive growth potential. The value of a sports team can grow exponentially in a short time. All it takes is a single good season. And if you bet on or invest in a team that isn’t favoured to win, in sports terms, the league’s underdog, the appreciation is massive. 

Yes, things could also take a turn for the worse, but in sports, the slide down is often less rapid than the climb up. Why? Legacy and fans. For teams with paramount legacies and strong fan bases, a single bad season isn’t likely to have a drastic impact on their market value. 

Further, investing in new, dynamic markets like sports aligns perfectly with age-old investment advice: diversify. Adding sports investments to your portfolio is a time-tested strategy to minimise your risk exposure. Especially during times of economic downturns when traditional markets take the worst hit, dynamic industries like sports could serve as your saving grace.

Learning the Game

Like any other domain, diving headfirst into the industry isn’t a smart move. You need to understand the game before you play it. In this case, you must learn the ins and outs of the industry before investing your hard-earned money.

Luckily, the work is already cut out for those who are already fans. For others, the learning process is tricky but no less fun. As a sports investor, there are a few things you ought to know before investing, including how the league operates, the history of all-time best performers, and recent statistics on teams’ performance, fan engagement, and revenue generation models. Knowing these things helps you make shrewd investment decisions and navigate the market like a pro.

How to play the investment game?

Investing in sports can be simplified if you focus on the right things. While there’s no guaranteed strategy for success, some approaches are more effective than others. The best investment strategies consider both the team’s performance on the field and fan engagement off it. They also take into account factors like market size, the franchise’s history, and revenue generation models. 

On the other hand, less effective kinds focus exclusively on one or two factors and ignore the rest, making investment more of a gamble than a smart financial decision to build wealth.

How to become a pro sports investor?

Becoming a pro-investor in sports requires a strong understanding of your team’s financial health. This includes studying its revenue streams, ticket sales, merchandise records, broadcasting rights, and sponsorship deals. Analysing expenses like player salaries, marketing costs, and infrastructure upkeep also helps you determine whether your investment is financially stable and will remain so. 

Moreover, becoming a savvy investor requires taking diversification a step further. Don’t just diversify your portfolio by investing in sports; also diversify your investment within sports to improve your odds of maximising returns. Here, diversification implies spreading your investment across multiple teams and franchises.

Is investing in sports risky?

No investment is entirely risk-free, and sports are no exception. In sports, most risks stem from the industry’s unpredictable nature. No team stays on top forever. Every team or franchise will eventually enter a slump or face a decline. However, there are often signs you can read to anticipate these shifts. 

At Stryde, we help investors navigate the dynamic world of sports and analyse and monitor teams’ performance on the go to enable shrewd investment decisions. Buy shares in your favourite team or invest in one rising like a rocket on a launchpad; you can do it all with Stryde.