The timeless popularity of sports and entertainment as separate pastimes has blurred over the past decades, bringing together elements of drama, comedy and suspense to the realm of professional competition.
The side-by-side nature of these two interests has precipitated another trend, which has financial implications to it: investing in sports-related stocks.
Solidification of the sports-as-entertainment hybrid provides the opportunity to examine some lesser-known implications between professional competition and finance. With input from The Motley Fool and Wall Street Survivor (a stock market simulator), the following is a list of five sports stocks that the average investor can purchase:
Here are five fan-favorite stocks:
- WWE & UFC are now TKO (NYSE: TKO)
- Manchester United Football (NYSE: MANU)
- Churchill Downs Racing (NASDAQ: CHDN)
- Madison Square Garden Sports Corp (NYSE: MSGS)
- Atlanta Braves Holdings Inc. Series A (NASDAQ: BATRA)
WWE and UFC Join Forces: The Birth of TKO Group Holdings Inc.
In a groundbreaking move that has redefined the landscape of live sports and entertainment, WWE and Ultimate Fighting Championship (UFC) have merged under the banner of a new company, led by former Endeavor CEO Ari Emanuel and former wrestler turned businessman Vince McMahon. As noted in The Hollywood Reporter, the merger created TKO Group Holdings Inc., operating under the ticker symbol TKO. Endeavor controls 51 percent of the new entity, with WWE shareholders holding the remaining 49 percent.
Manchester United’s Domination in Football
In 1878, the world of British football (soccer) changed forever with the formation of the Newton Heath LYR Football Club. This team, established by the Carriage and Wagon department of the Lancashire and Yorkshire Railway depot at Newton Heath, initially took to the field to play against other departments and rail companies at their home ground at North Road.
The club’s early days were humble, yet it was laying the foundation for what would become a global football powerhouse. By 1888, the club had etched its name in history as a founding member of The Combination, a regional football league.
Fast forward to the dawn of the new millennium, and Manchester United, as they were now known, showcased their prowess on the international stage, competing in the inaugural FIFA Club World Championship in Brazil in 2000. Domestically, the team’s trophy cabinet continued to overflow, with the club securing:
- 20 top-flight league titles
- 12 FA Cups
- 6 League Cups
- A record 21 FA Community Shields
Manchester United’s journey from a railway department team to a footballing giant is a testament to the enduring legacy and the indomitable spirit that has propelled it to the pinnacle of the sport.
Churchill Downs – A Legacy of Thoroughbred Racing
In 1875, Churchill Downs Incorporated emerged from the vision of 26-year-old Meriwether Lewis Clark, who was inspired by his travels in England and France to establish a Louisville Jockey Club for race meets. This idea blossomed into the legendary racetrack in Louisville, Ky., marking the beginning of a storied journey in the world of horse racing. Over the years, Churchill Downs has become a symbol of tradition and excellence in the sport, hosting iconic events that have captured the imagination of racing enthusiasts worldwide.
The company expanded its reach in 2007 by launching TwinSpires, an advance deposit wagering service that became the official betting platform for Churchill Downs and the Kentucky Derby. This move was followed by significant acquisitions, including the purchase of Youbet.com in 2010 and the assets of Peninsula Pacific Entertainment for $2.8 billion in 2022. These acquisitions folded major properties and gaming emporiums to its portfolio.
The growth and success of Churchill Downs Incorporated were highlighted in 2023 when a record 54,848 attendees were recorded at Thurby, the week-long celebration surrounding the race. The Thurby crowds represented a 14.6 percent increase in attendance from the previous year and underscored the company’s enduring appeal and influence in the horse racing industry.
Madison Square Garden’s History of Iconic Performances
Since its inception in 1879, Madison Square Garden has stood as a beacon of New York’s vibrant culture. Its “official” accolades include being named the “coolest arena” in the United States by Rolling Stone and the “venue of the decade” by Billboard.
MSGS owns the iconic building, as well as two teams who call it home: the New York Knicks and the New York Rangers.
Over the decades, MSG has hosted a wide array of notable events, both in and out of the sports world. They include:
- The 1970 Knicks NBA Championship
- The 1971 “Fight of the Century” between boxers Muhammad Ali and Joe Frazier
- The 1994 Rangers Stanley Cup Championship
Outside high-profile competitions, the site was also chosen as a setting for:
- Visits from Pope John Paul II (1979) and Pope Francis (2015)
- Marilyn Monroe’s birthday serenade to President John F. Kennedy (1962)
- The Democratic National Convention (1924, 1976, 1980, 1992) and the Republican National Convention (2004)
And as for entertainers, the following performers appeared at The Garden:
- The Rolling Stones (1969, first of 19 MSG shows)
- Elvis Presley (1972, with five other concert appearances)
- Tina Turner (1972, with five returns)
- Elton John (first in 1976, with 40 other engagements)
- U2 (1985 and nine other performances)
- Michael Jackson (1988, 2001)
- Taylor Swift (2009, 2011)
The Atlanta Braves’ Record-Breaking Dynasty
The story of the Atlanta Braves is a rich tapestry woven through the history of American baseball. Originating in Boston, Mass., in 1871 as the Boston Red Stockings, the team underwent several name changes before becoming the Boston Braves in 1912. Holding the title of the oldest continuously operating professional sports franchise in North America, the Braves have left an indelible mark on the world of baseball.
After 81 seasons and one World Series title in Boston, the team ventured to Milwaukee in 1953. There, stars like Hank Aaron and Warren Spahn led the Braves to a World Series victory in 1957.
Waning fan attendance, however, prompted another move, this time to Atlanta, Ga., in 1966.
Atlanta would witness a transformation as the Braves, from 1991 to 2005, dominated the baseball scene, clinching an unprecedented 14 consecutive division titles and making eight straight National League Championship Series appearances.
This era was defined by a legendary pitching rotation featuring Hall of Fame pitchers Greg Maddux, John Smoltz, and Tom Glavine.
The Braves stand as one of the two remaining National League charter franchises that debuted in 1876, boasting:
- An MLB record 23 divisional titles
- 18 National League pennants
- Four World Series championships
Remarkably, it is the only Major League Baseball franchise to have won the World Series in three different home cities.
At of the end of the 2023 season, the Braves hold an overall win-loss record of 11,025 to 10,876-154, with a winning percentage of .503.
Since the move to Atlanta, the team has maintained a win-loss record of 4,761 to 4,388-8, reflecting a winning percentage of .520.
How Sports Investing Can Enhance Your Fandom
By itself, sports fandom is an inherently exciting pastime. But having some financial skin in the game — aside from an office pool or bar bet — can augment the appreciation of professional competition. All investments represent risk, and the opportunities noted in this article certainly do as well. But prudent backing of a team, venue or event can be a deeper and perhaps more lucrative experience of being a devoted sports fan.
Sources for this article are The Motley Fool, Wall Street Survivor, The Hollywood Reporter and Madison Square Garden.
