It’s no surprise that many are interested in investing in NFL stocks. The National Football League (NFL) is one of the most popular and lucrative sports leagues in the world, boasting millions of dedicated fans and generating billions of dollars in revenue annually. However, if you’re looking to invest directly in the NFL, you’ll quickly find that it isn’t possible. The NFL is a privately held organization, meaning its shares are not available for public purchase.
But don’t be discouraged—there are still plenty of opportunities to invest in the thriving ecosystem surrounding the NFL. Companies involved in sports apparel, sports betting, and sports broadcasting play pivotal roles in the league’s success and offer potential avenues for investment. Here’s a closer look at some of the key players in these industries.
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The Best NFL Stocks to Buy
If you’re a fan of the NFL, investing in NFL-related companies might be a terrific way to make money. Despite its unpredictable nature, football remains one of the most popular games in the world, and many investors are attempting to profit from it. The NFL has grown even more profitable as daily fantasy sports and sports betting have grown in popularity. These are the best NFL stocks to buy:
NFL Stocks – Sports Apparel Brands
1. Nike, Inc. (NKE)
Nike is a powerhouse in the sports apparel industry and has a significant relationship with the NFL. The company has been the official uniform supplier for the league since 2012. Nike’s extensive line of NFL-branded apparel and footwear makes it a popular choice among fans.
2. Under Armour, Inc. (UAA)
Under Armour, though not as directly tied to the NFL as Nike, has a strong presence in the sports world. The company provides performance apparel, footwear, and accessories that are popular among NFL players and fans alike.
NFL Stocks – Sports Betting Brands
1. DraftKings Inc. (DKNG)
DraftKings is a major player in the fantasy sports and sports betting industry. With the legalization of sports betting in many states, DraftKings has expanded its offerings to include NFL betting, making it a popular platform for football fans.
2. FanDuel Group
Similar to DraftKings, FanDuel offers daily fantasy sports and sports betting options, including NFL games. While FanDuel is a part of Flutter Entertainment (PDYPY), it’s an essential brand for NFL-related betting activities.
3. Caesars Entertainment, Inc. (CZR)
Caesars is a prominent name in the casino and sports betting industry. The company’s acquisition of William Hill has strengthened its position in the sports betting market, including NFL betting.
NFL Stocks – Sports Broadcasting Brands
1. The Walt Disney Company (DIS)
Disney owns ESPN, a major broadcaster of NFL games. ESPN’s extensive coverage includes Monday Night Football, NFL Countdown, and various other NFL-related programming, making Disney a significant player in sports broadcasting.
2. Comcast Corporation (CMCSA)
Comcast’s NBC Sports is another key broadcaster of NFL games. Sunday Night Football, one of the league’s premier broadcasting slots, airs on NBC, drawing millions of viewers each week.
3. Fox Corporation (FOXA)
Fox is a major broadcaster of NFL games, including Thursday Night Football and a large portion of Sunday afternoon games. Fox Sports’ comprehensive coverage and commentary make it a staple for NFL fans.
4. ViacomCBS Inc. (VIAC)
ViacomCBS, through its CBS Sports division, broadcasts numerous NFL games, including a large share of the Sunday afternoon matchups and the AFC package. CBS also has broadcasting rights to some of the most significant NFL games, such as the Super Bowl.
The Value of the NFL
The NFL is a financial juggernaut, with an estimated value of over $100 billion. This valuation comes from multiple revenue streams, including television contracts, ticket sales, sponsorship deals, and merchandise sales. Here are some key financial highlights of the NFL:
Television Contracts
Television deals are the NFL’s most significant revenue source. The league has multi-year agreements with major networks such as CBS, NBC, Fox, and ESPN, totaling over $110 billion through 2033. These contracts ensure that millions of viewers have access to NFL games and generate substantial income for the league.
Ticket Sales and Attendance
Pre-pandemic, the NFL’s average attendance per game was around 66,000, with total season attendance exceeding 17 million fans. Ticket sales contribute significantly to the league’s revenue, with many games selling out well in advance.
Sponsorship and Advertising
The NFL attracts major sponsors from various industries, including automotive, beverage, and technology companies. These sponsorships, combined with advertising revenue, add billions to the league’s coffers. For example, the Super Bowl alone generates hundreds of millions of dollars in advertising revenue each year.
Merchandise Sales
NFL merchandise, including jerseys, hats, and other apparel, is incredibly popular among fans. The league’s licensing deals with companies like Nike and Fanatics help drive substantial revenue from merchandise sales.
Is Investing in NFL Stocks Worth It?
Investing in companies associated with the NFL can be a profitable venture, but it’s essential to consider several factors before diving in.
Pros
Strong Brand Affiliation: Companies affiliated with the NFL often benefit from the league’s strong brand and large fanbase. This can lead to increased sales and revenue, particularly during the NFL season and around major events like the Super Bowl.
Growth Potential: The legalization of sports betting in many states has opened new revenue streams for companies in the betting industry. This trend is likely to continue, providing growth opportunities for companies like DraftKings and Caesars Entertainment.
Diverse Revenue Streams: Companies involved in broadcasting NFL games, like Disney and Comcast, benefit from multiple revenue streams, including advertising, subscription fees, and licensing deals.
Cons
Market Saturation: The sports apparel market is highly competitive, with several major players vying for market share. This can limit the growth potential for companies like Nike and Under Armour.
Regulatory Risks: The sports betting industry faces significant regulatory risks. Changes in legislation or increased regulation could impact the profitability of companies like DraftKings and FanDuel.
Economic Sensitivity: Companies tied to discretionary spending, such as sports apparel and entertainment, can be sensitive to economic downturns. During periods of economic uncertainty, consumers may cut back on spending in these areas.
Bottom Line
Stocks from the NFL are an ideal substitute for investors to gain exposure to and profit from the immensely famous football league. The valuations of some clubs, including the Green Bay Packers, Baltimore Ravens, New England Patriots, and Dallas Cowboys, have skyrocketed recently.
A controversy or poor performance might result in big stock price declines; thus, there are certain dangers involved with investing in NFL stocks. However, with proper research and knowledge of the NFL’s economic strategy, these risks can be controlled.
Choose a trustworthy broker who can provide you with trades to get started if you’re interested in purchasing NFL stocks and becoming a part-owner of an NFL franchise. You may be well on your way to earning some substantial profits on your investments in NFL stocks if you have the correct plan in place and a thorough grasp of the football business.
