The NBA is a privately owned company, which makes it impossible to invest directly in it. Nevertheless, there are several affiliated companies with the NBA where investors can allocate their funds.
Furthermore, investing in NBA players is akin to investing in stocks because their value fluctuates based on their performance.
This article will explore some of the companies affiliated with the NBA that investors can consider, along with other related investments to keep an eye on.
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Invest in Companies Affiliated with the NBA
Nike
Nike is the brand most closely associated with the NBA and the sport of basketball. Its association with basketball began in the late 80s when Michael Jordan signed on for a shoe deal with the company.
Nike has since become the official on-court apparel maker for the NBA, a deal worth an estimated $1 billion over its eight-year duration. The Jordan brand alone makes the company over $3.5 billion per year. Nike’s affiliation with the NBA makes it one of the best stocks to buy for investing in the league.
Under Armour
Under Armour is another company affiliated with the NBA. It managed to sign Steph Curry away from Nike and recently signed Philadelphia 76ers star Joel Embiid as well.
However, Under Armour just doesn’t hold the same street cred as Nike. Its market share and market cap have both plummeted over the past few years. The company remains on the fringes of the NBA brand association.
Gatorade
There are few things more synonymous with professional sports than the Gatorade brand. PepsiCo and the NBA have a multi-year partnership for Gatorade to be the official drink on NBA benches. They also have naming rights to the NBA’s developmental league which was renamed the G-league a few years back.
The G in G-league uses the same G from the Gatorade logo. So there’s a ton of brand and product placement in the name of the league. Investing in PepsiCo could also be a good idea since it owns Gatorade.
Microsoft
Microsoft has become a major sponsor of the NBA. Microsoft and the NBA signed a multi-year partnership that’ll see the league utilize its Azure cloud software. As well as incorporating Microsoft Surface tablets into the game.
There’s also been talk about utilizing augmented reality technologies as well as instant language translations and live replays and video feeds. Microsoft already has its Surface tablets being used on the sidelines in the NFL.
So it only seems natural that they’ll be in the NBA too. Investing in Microsoft could be a good long-term investment.
Invest in NBA Memorabilia
Investors looking for a more tangible way to invest in the NBA might consider purchasing memorabilia such as autographed jerseys, basketballs, and trading cards.
Basketball cards have been a popular hobby for decades, and their value can appreciate significantly over time, particularly if they feature a player who goes on to achieve great success.
In recent years, the market for basketball cards has exploded, with rare cards selling for millions of dollars at auction. Some investors have even formed investment groups to pool their resources and acquire rare cards with the potential for high returns.
To invest in basketball cards, start by doing your research and familiarizing yourself with the market. Look for cards featuring popular players who have a chance to become superstars, and pay attention to card condition, rarity, and other factors that can affect value.
Once you’ve identified cards that you’re interested in, consider buying them from reputable dealers or auction houses. You can also participate in online marketplaces or attend card shows to buy and sell cards.
The value of these items can fluctuate based on a number of factors, including the player’s performance on the court, their popularity with fans, and their overall legacy in the sport. Investors should do their research before making a purchase and ensure that they are buying from a reputable dealer.
Invest in NBA Top Shot
Imagine owning a piece of NBA history that’s more than just a physical object. With NBA Top Shot, you can own digital moments of your favorite players in action, preserved on the blockchain for eternity. It’s not just a collection of highlights – each moment is officially licensed by the NBA and authenticated as unique, making it a valuable and rare item.
As a collector or investor, you have the opportunity to build your own portfolio of NBA Top Shot moments, ranging from iconic dunks to game-winning shots. You can also participate in the thriving marketplace, where moments are bought and sold based on their scarcity and demand. This creates a unique and exciting opportunity for investors to potentially profit from their collection as the market evolves over time.
Not only does investing in NBA Top Shot give you the chance to own a piece of NBA history, but it also allows you to engage with a vibrant community of collectors and fans who share your passion for the game. You can showcase your collection, discover new moments to add to your portfolio, and even participate in community events and challenges.
The Bottom Line
Investing in the NBA can be a fun and exciting way to diversify your portfolio. Although you can’t directly purchase shares of the league itself, you can invest in companies that have partnerships with the NBA, as well as in NBA memorabilia and NBA Top Shot.
As with any investment, it’s crucial to conduct thorough research and carefully evaluate your risk tolerance before making any decisions.
