Professional sports leagues, in general, are the NFL and everyone else. The NFL is one of history’s most successful sports organizations. Unfortunately, you cannot invest in the league itself. You may, however, invest in NFL stocks. The NFL is a private trade association made up of all 32 teams. The Green Bay Packers are the only publicly-owned team. The NFL, on the other hand, is a lucrative business. So there’s got to be another way to make money off the NFL’s popularity. Fortunately, a few public firms are in an excellent position to profit from the NFL’s success.
The NFL is a highly intriguing market. This is because many businesses are trying to get their piece of the financial apple. The league earns billions in TV rights contracts every year. According to Investopedia, half of the NFL’s $16 billion annual income comes from television contracts. The NFL distributes this money equally among all 32 teams.
After that, each team generates revenue through its stadium, merchandise, and advertising:
- Players and coaches are compensated for showing up and playing the game.
- Units are outfitted with lucrative contracts from major apparel businesses. Sunday, Monday, or Thursday night football is frequently broadcast with links to sponsors and recommendations.
- Owners and team stakeholders are compensated depending on the entire company’s success.
After that are the stadiums to consider.
Each stadium operates as a separate company. It has an owner, management team, workers, 3rd-party concessions stands, ticket sales, merchandise contracts, and sponsors. As a result, money is changing hands all over the place on game day.
NFL Stocks To Consider
It’s easier to discover NFL stocks to acquire once you’ve studied the various components of the NFL pie. Investors should think about sports stocks to purchase for the long term. Of course, that’s the most obvious choice. The most excellent aspect of NFL investments, in a sense, is the existence of numerous industries.
Major Apparel Provider: Nike (NYSE: NKE)
Nike is a no-brainer as one of the top NFL stocks to invest in. This is because it has an unusual agreement with the NFL that runs through 2028. Nike may dress all 32 stuff’ uniforms and sideline apparel thanks to this relationship. Starting in September 2020, everything on the field will be Nike for the next six years. From the quarterback’s jersey to the ball boy’s socks, it’s all Nike Swooshes. Every game day, there are a lot of Nike Swooshes running around the field.
Nike didn’t disclose how much it spent on the partnership. However, it’s likely to be close to a billion dollars. Nike has similar agreements with the NBA and many college sports teams, just a few examples of its vast portfolio of partnerships. This collection of arrangements is only one aspect of why Nike is one of the four best fashion.
Stadium Sponsors
There are 30 NFL stadiums in total. The majority of them have a primary sponsor. Naming rights to an NFL stadium process are pretty valuable. Consider how many individuals attend the stadium or tune in to the game on TV. Sponsors’ names are mentioned hundreds of times during each match.
Major multi-conglomerate businesses often sponsor stadiums. Gillette Stadium in Massachusetts, for example, is supported by a Procter & Gamble subsidiary. Because Gillette is owned by Proctor & Gamble, they are well-known, and these naming rights most likely do not increase sales significantly. Furthermore, most businesses have sponsored the same stadium for many years. The Bank of America Stadium was established in 1996, for example. Therefore, consumers are familiar with it at this time.
When it comes to stadium sponsors, there isn’t much to get excited about except for one exception. This exception makes this next firm one of the most significant NFL stocks to buy.
NFL Stocks: SoFi Technologies (Nasdaq: SOFI)
SoFi is an online financial firm that does it all. It offers savings, investing, and money management services. SoFi recently received a bank charter to start offering its banking solutions (instead of partner offerings). In 2020, SoFi Stadium will be renamed after the company.
The Los Angeles Chargers and the Los Angeles Rams call SoFi Stadium home. SoFi gets twice as much attention during the season because there are now two teams. For the past several years, both of these clubs have been establishing themselves in Los Angeles. These fanbases are especially pleased to have these franchises back in Los Angeles. This implies more people will attend and support the event. Oh, and there’s one more significant reason why SoFi could break out this year’s Super Bowl.
SoFi is one of the best NFL stocks because it provides a fantastic product, is a rapidly developing firm, and receives excellent exposure during both Rams and Chargers games.
Gambling
Gambling and football were like toothpaste and orange juice. It was a disgrace to the game to mention gambling in the same breath as football. This prejudice, however, is dissipating fast. Sports betting is now legal in more than two dozen states. Moreover, many more states are anticipated to legalize it in the future. So there’s a lot of reason to believe the NFL will embrace gambling much more enthusiastically than many people think.
Remember, the NFL is a business at the end of the day. Everyone involved with the league cares about one thing…making money. As a result, Its most common approach to expanding is to ink larger and more significant TV contracts. This has worked in the past. Aside from this, there aren’t many other choices.
One way to increase stadium capacity is to add more seats. However, this is generally a costly and time-consuming endeavor. On top of that, ticket sales still account for a tiny fraction of what television contracts generate.
The NFL may be looking for another growth engine to help sustain its popularity. Gambling is already starting to seep into the NFL, its teams, and its stadiums.
A Bet On Increasing The NFL’s TAM
The total addressable market (TAM) is the actual profit potential for a product or service. For example, Uber’s TAM refers to anyone who wants a ride in areas where Uber is available. It has an enormous TAM, which is why it’s worth billions.
Everyone who enjoys football is the NFL’s total market. While this is a large TAM, it’s reasonable to believe that this market is already oversaturated. Almost everyone knows what football is, and most people support teams they’ve long supported. Those who despise football are unlikely to buy season tickets to the next season. As a result, the NFL has limited alternatives for increasing its TAM.
Sports betting is one of the most practical methods for the NFL to boost income. This is because sports betting can attract a new audience. Most likely, many individuals in the United States don’t care about football but like to gamble.
Sportsbooks are already legal in certain jurisdictions. So it’s a logical progression for sportsbooks to be licensed in stadiums. This may draw in a new audience that isn’t necessarily interested in the game itself. They’re there to gamble, after all.
Sports Betting Giant: DraftKings (Nasdaq: DKNG)
The NFL has an exclusive partnership with DraftKings, one of only three sportsbooks linked up with the league. Due to this arrangement, these firms may now utilize the NFL’s intellectual property and registered trademarks for marketing purposes. The intellectual property includes everything from league statistics to highlights. In other words, it means that NFL bettors will utilize one of these three firms. The NFL’s official daily fantasy partner is DraftKings.
FanDuel (OTC: PDYPY)
The second sports betting companies partner with the NFL is FanDuel, owned by Flutter Entertainment. It’s the main rival of DraftKing and offers a similar platform. For additional information on FanDuel, see my FanDuel stock forecast.
NFL Stocks to Buy: Caesars Entertainment (Nasdaq: CZR)
Caesar’s is the last firm to obtain official sports betting partner status from the NFL. It’s also the only one of the three that owns casino resorts. This means that Caesars can connect this relationship at all of its US casinos. Caesars has 51 properties in the United States under its control.
Casinos want to attract people and keep them as long as possible when it comes to gambling. The more time someone spends at a casino, the more money the house wins. This NFL agreement may be a significant draw for individuals who wouldn’t usually go to Caesar’s casinos. Additionally, Sundays, Mondays, and Thursdays are low-traffic casino days. If individuals are coming to wager on the evening’s NFL contest, that might change drastically.
Bottom Line
We adore sports, and the NFL isn’t anything, if not massive. Although franchises aren’t openly traded, there are plenty of investment chances in our nation’s favorite sport to pursue. Don’t forget to put your helmets on, smooth down your hair, and get ready for the next play with these top stocks linked to the NFL season – including some of the most significant long-term sponsors of the national game. Make sure you understand the playbook before you go out there (as in, do your homework). DYOR
FAQs
Can you buy stock in the NFL?
No, unfortunately. The NFL is privately owned and controlled in the same manner as the NBA. It isn’t a publicly traded firm and won’t be for a long time.
Is NFL a publicly-traded company?
As the National Basketball Association, the NFL is a privately owned business. It isn’t traded on the public market and will never be. So you might not be able on buying shares in the NFL, but that doesn’t mean there aren’t other ways of investing in your favorite sport.
Does football have stock?
The football industry is vast, but investing in it is largely inaccessible to fans. However, a few football clubs have securities available on stock exchanges worldwide, so not everyone has to be a Glazer.
Do NFL teams sell stock?
Over the course of 2011, the stock market in the United States has been extremely tough, but a sports franchise’s shares recently went on sale. A week ago, 250,000 shares of common stock of the NFL’s Green Bay Packers became available for $250 each.
Is Nfl stocks a good investment?
In a nutshell, owning an NFL team is a fantastic investment, especially compared to other hobbies. The value of a sports franchise rarely decreases. A new stadium may increase the value of your team considerably. In addition, every NFL team will profit handsomely from the new television contract beginning in 2014.
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