Can You Buy Stock in NBA?
While you can’t buy stock in the NBA, that doesn’t mean that there aren’t several other ways of investing in the world’s premier basketball league.
No, you cannot buy stock in the NBA directly. The NBA is a private company, and its shares are not traded on the public market. However, there are a few ways to invest in the NBA indirectly.
Founded in 1946, the National Basketball Association (NBA) is the premier basketball league in the world. It comprises 30 teams – 29 from the United States and 1 from Canada. Over the past 20 years, the NBA’s revenue skyrocketed thanks to a series of lucrative TV, sponsorship, and merchandise deals. It is no wonder that many fans and investors are looking to invest in the NBA to gain exposure to the growing business.
In this article, we are going to examine how you can gain exposure to the NBA and examine ways to invest in the league indirectly.
About NBA
The NBA was founded in 1946 as the Basketball Association of America (BAA). The BAA merged with the National Basketball League (NBL) in 1949 to form the NBA. The league has grown steadily since then, and it is now one of the most popular sports leagues in the world.
Over the last 20 years, the NBA’s annual revenue skyrocketed from $2.66 billion in 2001/2002 to more than $11 billion in 2023/2024. The revenue is expected to increase even further in the future, with the new TV rights deal expected to reach anywhere between $50 billion and $75 billion.
NBA’s revenue increased to a record $11.3 billion in the 2023/2024 season. Image source: Statista
The increase in revenue has been reflected in the value of individual franchises as well. Here is the list of the 5 most valuable NBA franchises as of 2024, according to a report from Forbes:
- Golden State Warriors: $8.8 billion
- New York Knicks: $7.5 billion
- Los Angeles Lakers: $7.1 billion
- Boston Celtics: $6 billion
- Los Angeles Clippers: $5.5 billion
Can you buy stock in the NBA?
Investing in the NBA, as you may have guessed, isn't as straightforward as purchasing shares in a publicly traded company. The NBA operates as a sports league rather than a publicly traded corporation, which means you can't buy traditional stocks in the NBA itself. However, there are several avenues through which you can indirectly invest in the NBA and the basketball industry.
Will there be an NBA IPO?
There is no information regarding a potential NBA initial public offering (IPO). Also, there is no precedent for a major sports league doing an IPO. However, there is an increasing number of teams that are publicly traded, so you might have a chance to buy a share of an NBA team if one goes public in the future.
A prominent example includes the NFL team, the Green Bay Packers, which is the only publicly owned major professional sports franchise in the United States. Rather than being the property of an individual, partnership, or corporate entity, they are held by 537,460 stockholders as of 2023. No one is allowed to hold more than 200,000 shares, which represents approximately four percent of the 5,011,558 shares currently outstanding.
How to invest in the NBA indirectly
There are a couple of different ways of investing in the NBA indirectly, including buying shares in publicly owned companies that have deals with the NBA and participating in sports betting.
Companies that sponsor the NBA
One way to invest in the NBA is to buy shares in companies that sponsor the league. These companies include Nike, Under Armour, and Coca-Cola. When you buy shares in these companies, you are indirectly investing in the NBA, as their profits are tied to the success of the league.
Companies that sponsor the NBA:
Nike is arguably the most involved company with the NBA – the sportswear maker has numerous deals with NBA athletes and is one of the biggest sponsors of the league. If you want to gain exposure to the NBA by investing in one of the league’s sponsors, then Nike is probably your best bet. However, the company has been performing quite poorly in recent years, with its shares dropping by about 21% in the last 5 years.
NBA service providers
Another way to invest in the NBA is to buy shares in companies that provide services to the league. These companies include media companies, ticket vendors, and arena operators. When you buy shares in these companies, you are indirectly investing in the NBA, as their businesses rely on the league's success.
NBA streaming and TV partners:
The NBA is currently in the process of negotiating a new, 10-year TV deal with Walt Disney Co.’s ABC/ESPN and Warner Bros. Discovery’s TNT that could be worth anywhere from $50 to $75 billion. According to sources, Amazon Prime Video and Apple TV are also interested in obtaining rights to stream NBA games.
Individual team ownership
At the moment, no team in the NBA has issued shares that could be bought by retail investors. However, that might change in the future. There’s a clear precedent in the NA sports industry, with the Green Bay Packers being a publicly owned, non-profit corporation since 1923.
Sports Betting
The legalization of sports betting in many regions in the US and across the world has opened up another avenue for those interested in investing in the NBA. While betting should be approached with caution and responsibility, some investors have found opportunities in companies related to the sports betting industry. Here are some examples of publicly traded companies that offer sports betting:
Can you buy stock in the NBA FAQs
Can I invest in individual NBA players?
While you can't invest in players directly, you can invest in companies that endorse or sponsor NBA players. Look for sportswear and shoe companies that have partnerships with NBA stars.
What are the risks of investing in the sports industry?
Investing in the sports industry, like any other investment, carries risks. Economic downturns, player injuries, and changes in consumer preferences can all impact the industry's performance.
Is it a good idea to invest in the NBA?
Investing in the NBA can be rewarding for those with a passion for basketball and a diversified investment portfolio. However, it's essential to conduct thorough research and consider your financial goals and risk tolerance.
How do I stay updated on NBA-related investment opportunities?
To stay informed about investment opportunities in the NBA, follow reputable financial news sources, explore investment forums, and consider consulting with a financial advisor.
What is the NBA stock price and ticker?
There is no NBA stock price or ticker as the NBA is not publicly traded.
The bottom line: While you can’t invest in the NBA directly, there are other ways to gain financial exposure to the league
While you can't buy traditional stocks in the NBA itself, there are various ways to invest in the basketball industry. Whether it's through investing in related companies or exploring the world of sports betting, opportunities abound for those interested in combining their love for the game with financial endeavors.
If you want to learn more about other successful private businesses and how to invest in them, check out the following articles:
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