Investing In Sports Teams: 3 Ways To Back Your Favorites

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Most people aren't going to be able to call up a sports franchise valuation service and buy a national football or basketball team. But that doesn't mean that you can't bring your favorite hobby to your investment portfolio. There are many ways to invest in sports teams that don't have to involve betting on their wins. Here are some of the most popular.

1. Buying Collectibles

A fairly direct way to invest in sports is to purchase collectibles. Though this type of investment -- a direct asset -- may not exactly be a stock or a bond, it's actually not a bad move. There are many collectibles that are known to appreciate in value, such as signed balls from historically excellent players. Not only this, but you can even create collectibles rather than just purchasing them -- by getting things signed and attending events. Collectibles are a very easy way to get into the sports investing market, provided you protect your investment properly with insurance and security.

2. Purchase Shares in a Publicly Traded Team

There are many sports teams that are publicly owned -- which means even if you can't own them, you can own shares in them. This has often been used as a gift for those who are looking for something niche and unique rather than strict yields. It's usually not extremely profitable to purchase shares in a publicly traded team, though it can be a winning strategy if you have reason to suspect the team will become radically more popular. Keep in mind the fact that simply winning doesn't generally increase the value of a team, especially at high levels.

3. Get Into the Minor Leagues

You probably can't buy a national team, but it isn't unheard of to own stake in a minor league team. Minor league teams can be as little as a quarter million dollars, and when you purchase them you can go in with several partners. Of course, that's also more of a business than a straight investment -- you're probably going to have to do some work and bring more than just money to the purchase. 

Sports teams carry with them traditional investment risks and more. Sports can be fairly volatile, and there are a lot of elements to track. Because of that, sports investments probably shouldn't be a large sector of anyone's portfolio. Instead, it can be used to round out a portfolio with some high risk, high reward investments. You can contact a sports franchise valuation service for more information.

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