I was thinking to myself while watching some football on Thursday night, what’s a solid multi-billion dollar industry I haven’t yet explored when contemplating an investment opportunity. Why sports franchises of course. The average football team brings in a truck load of money and with the salary cap in place has a very limited amount of expenses. Sadly though, the only football team you can invest in is the Green Bay Packers, and they are unsellable, non-dividend paying stocks that are only sold if the team needs to raise some quick cash. However there are plenty of other sports and potential options right? Well, no actually. From what I found, the most worthwhile options are the Manchester United football Club ($MANU) and Madison Square Garden ($MSG) which on top of being a high end venue for various things also has ownership in a few sports teams such as the Rangers (hockey) and Knicks (basketball).
On top of a lack of dividends, neither of these stocks are terribly exciting. Growth is largely poor for Manchester, since it is already the largest sports franchise in the world. Madison however has doubled in the last ten years. MSG seems to benefit more from the added value of a venue space than their mediocre sports franchises, but even still has pretty decent finances. Here’s a chart for each:
Overall the lack of a dividend prevents me from wanting to move on either of these, but if you happen to be a super fan of one of the aforementioned sports teams, having some ownership in your team seems like a pretty sweet deal.