L’sports economics represents $ 800 billion in revenue worldwide. Or 2% of world GDP (source: PWC, 2019). Each year, for ten years, its growth has increased from 6% to 7%, a rate that should be maintained. Especially since the sports market regularly experiment with technological innovations. We therefore understand the growing interest in it from investors, eager to make it their new playground.
Therefore, the sport is a financial investment possible? What are the risks to consider before starting?
There are several ways to invest in sports. And no, you don’t have to wait until you’re rich to afford a football team. Other much more accessible opportunities are available to individual investors.
First, it is possible to buy shares of companies listed on the stock exchange (Nike, Adidas, AcceleratePSG, Amaury Sport Organization…). To acquire shares of American companies, favor the EF (also called trackers), funds that reproduce the value of a given index. They are accessible through the‘life insurancethe securities account and the AEP.
Then some UCITS such as Mandarine Global Sport (SRI label) or Allianz Sport et Bien-être offer people the opportunity to invest in the sports sector. UCITS can be held in life insurance, PEA, a securities account or even a PER.
Sporting goods and memorabilia are also a good way to invest in the sports sector. Moreover atypical, they are also highly sought after by collectors. Cards, illustrations, autographs, sneakers, autographed jerseys or footballs … The possibilities are endless.
L’Panini Mondiali 1970 album signed by Pelé sold at auction for more than 12,000 euros. However, it is better to position oneself on a single theme (for example rugby), to avoid getting lost with too heterogeneous objects. Sites like Catawiki or Ebay can be a good gateway.
Finally, esports also offer good investment opportunities (see below).
Investing always involves an element of risk. Whatever sector of business you want to invest in, it is important to respect two fundamental rules. Don’t invest all your savings and diversify your portfolio as much as possible. Remember that the more an investment has a high return potential, the more it is associated with significant risk. This is called the risk-reward pair.
That said, the sports community is never immune to the ups and downs of the economy. Recently, the health crisis has forced many sports facilities to close their doors or cancel their events. But these risks can be offset by diversification. For example, rather than investing in the shares of a single company, it is better to combine your investments in various assets (shares or securities of UCIs, stocks, ETFs, collectibles, etc.).
L’e-sportsor electronic sport in French, refers to video game competitions. These can take place on the Internet or in a local network (LAN-party). A professional player (pro gamer) plays individually or in a team. Many sporting events are organized around the world, often bringing together tens of thousands of spectators.
Among the flagship video games of e-sports, we can mention League of Legends, Call of Duty, FIFA…
Contrary to what one might think, e-sports is not a niche. It is a real sector, with a turnover of $ 1 billion and 495 million players in the world.
If you don’t have the skills to become a professional esports player, don’t worry – there are other opportunities out there.
One of the easiest ways to invest in esports is to buy shares in companies that develop and publish video games, such as Electronic arts (IT’S AT), Ubisoft, Epic games or Activision Blizzard.
It is also possible to invest in platforms such as Contraction o Huya (leader in China). In the case of foreign companies, more often than not, ETFs are the means of choice (for example, for American companies, turn to ETFs that track the performance of the S&P 500 or Nasdaq indices). You can also acquire foreign shares through a ordinary securities account (CTO).
Finally, ETFs specifically dedicated to e-sports, such as VanEck Video Gaming and eSports are another chance to invest in this particular sector.