Many sporting enthusiasts or market investors might find the idea of investing in their favorite players or favorite teams exciting. A new type of stock exchange is emerging where this is possible. A “sports exchange” or an “athletic stock exchange” makes this possible. In this market, investors buy and trade stock in their favorite sporting players.
How does this new investment market work? It starts when an athletic stock exchange company buys an interest in a player and signs them onto their stock exchange program. In exchange for this one-time payment, the player gives the company a set percentage of their future income, including endorsements and other off-the-field earnings. The company then sells stock or shares that represent this interest.
When you buy a piece of stock in a player, the value of this stock will go up and down according to how the player performs. For example, a player who has a good year on the field may receive a high salary, additional endorsements, and more income opportunities. This would be reflected in the players’ stock, which represents a percentage of this income. If the player were to perform badly for a year, the stock would be adversely affected.
This new avenue of investment is not necessarily well known at this point in time. However, the concept of an athletic stock exchange is attracting interest, and each year more and more players sign up to be listed on an exchange. In the future, this is sure to become a way in which sports fans can invest in their favorite players and teams. Also, as an emerging market, it will surely attract more investors from outside the sporting world.