As the world begins to gradually emerge from lockdown, there is a wide selection of industries that could prove to be ample ground for profitable investments in the coming weeks. Here are a few reasons why sports investments could see a major return to form, and might be very profitable in the coming months.
Prices Are In A Slump
As sporting activity ceased and revenues stopped rolling in, the share prices of sports teams around the world suddenly saw a significant fall.
Although at the time this meant that a lot of investors lost out, it means that now as the stocks begin to rebound you can get in on the action at an affordable level. At the time of writing, shares in MANU are at 16.27, still well below their highest for the year of 20.34. There is clearly a lot of room for growth.
Significant Levels Of Interest
Taking the football club Manchester United as an example, the return of the Premier League and competitive football will offer a great level of interest to millions across the world.
People will not only be able to watch football again but will likely have a much greater level of interest in spending money on their favourite teams in comparison to the lockdown period.
As revenues rise, interest from both customers and investors will come with it. Eventually, this will draw more investments, and having invested when the price is low you’re left with a healthy profit.
Pay Attention To On-field Investments
When you’re investing in sports teams, you’re not looking for wider market trends as to how an investment will go, but instead the behaviour of one club in particular.
Again using football as an example, clubs such as Borussia Dortmund (whose share price has risen since the Bundesliga’s return) and Manchester United are making intelligent squad building decisions and greatly increasing their potential results.
With results comes prestige, players and importantly prize money, which can mean profits on your investments. When you’re looking to invest in sports teams in the dip, you’ll need to be certain that you’re picking the right investments.
Ultimately, the return of sports has been highly anticipated, so to get on the bandwagon before it sets off could be an excellent route to a much higher profit margin than more traditional areas of investment.