In the last couple of months, I’ve been following the stock market relatively closely. Not because I want to start a career in finance, but rather I’m interested to learn about company value and how how I see “good” companies vs. how the market sees “good” companies.
Often, I revisit a stock that I’ve been following and think, Sh*t, if I had only gotten in at $40 in September… The feeling of a missed opportunity for easy money makes me sick.
True story: I bought into I Chipotle when the stock was at $100 and got out at $320 when I thought: “I just don’t see how Chipotle could get much bigger”. Talk about being sick!
The stock now sits at a pretty $650! Not only did I go against every single dietary value I have, but I failed to recognize the strength of the company and the incredible “thundering herd” behind Chipotle (Thundering Herd is a term my dad likes to use when talking about a strong following of a company — rest assured, I’m not associating Chipotle with Marshall U). I love Chipotle and would invest every dime I had into the future of their success — The problem is that those “dimes” seem to be missing from my bank account. I digress.
Of course, the reason I would choose to invest would be based on the potential for financial growth. But I would invest in Chipotle because I love watching a company that I support do well. I want Chipotle to become the next McDonald’s (popularity wise). I’m rooting for Chipotle so why shouldn’t I make a quick penny off of it?
The reason we love (and hate) the stock market is because of the thrill it gives us as investors. It’s the same reason why America has grown a love for fantasy sports and sports gambling. When we have the opportunity to gamble on somebody we are rooting for, it provides a greater interest and makes us feel a part of the run.
The Emergence of Sports Marketability
I sat down this morning with a fresh cup of coffee, turned on SportsCenter, and watched as they showed highlight after highlight from last night’s NBA games. I watched John Wall freeze defenders and come one dime away from a triple double. I watched Steph Curry have an “off” night and go fro 20-5-6. I watched DeMarre Carroll go for 26 points and 4 boards.
I watched a talent pool that is loaded with potential do things that I would have never expected 3, 5, or 7 years ago! Which got me thinking…
What if you could “invest”, as fans, in professional talent? What if you were one of those early Steph Curry believers, when nobody else thought he would amount to anything? What if Steph Curry were your “Chipotle at $100”?
Sports have an amazing power — they unite people of all shapes and sizes. Sports have the power to make your day and the power to ruin it. Sports have the power of voice to millions of passionate fans and analysts.
In today’s society, sports have become more than entertainment, they’ve become a part of life as we know it. Fantasy sports, online sportsbooks, and new websites and apps like FanDuel, Draft Kings and SportsLock are creating a new market for the sports world.
Companies like Fantex are making ways for fans to even own a share of a professional athlete’s future brand income.
There is simply a new market that has emerged in the sports business. Players are more marketable than ever and fans like me are trying to get a piece.
How about you?
Keep coming back for more to come on business side of sports!