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The definition of a statement asset is an asset that is perceived to make you appear richer, smarter, and better connected than your peers. If you own something like a sports team, your friends will be apt to say, “I know the family that owns that NFL team or that office tower.” Their status then becomes enhanced by their association with you.
Other examples include high-end fine art, mostly Class A real estate in major cities, European sports leagues, and anything ambitious – but unquantifiable – on Instagram.
The hidden benefits of owning a professional sport
Beyond the impressive returns bolstered by the league’s protected brands, most owners gravitate towards this asset class because it offers something very few other clubs or companies can offer.
Where else can you network with other people who are at the top of their game and who have invested in many different industries and achieved this kind of success? It’s just a unique club that’s for the uber elite.
Revenue sharing happens with online sports game companies. Now these teams are getting a slice of those revenue streams they never would have counted on before.
Related: How Esports Is Different From Fantasy Games & Real Money Games
Are the assets in the statement holding up?
Professional sports have always been a wealth-creation mechanism for the elite, isolated by fierce brand protection. Now that financialization is entering the mix, valuations may continue to climb.
Ultimately, time valuations continually increase, making it a much less risky investment.
These spectacular risks increased the fortunes. They have been a pathway to legitimacy for these families and will continue to be a norm for some time to come.
For families with substantial assets behind them, the approach to professional sports ownership should be no different than any other form of investing: Buy across multiple industries and geographies. Next, build a portfolio with thematic investments with the mindset that you are focused on building a portfolio that is highly diversified by its exposure.
Related: Why PR Professionals Need to Pay Attention to the Sports Industry’s Social Media Revolution
Do all owners have the same agenda?
Sometimes people just want to invest, be passive, and say, “I own it.
Then you get these guys saying, “Well, I want to get into this business. I’m going to invest because I want to use it to build my other business.
On the other hand, sometimes there is an anonymous charitable trust that only exists to give out money. He doesn’t need anything from anyone. Most guys invest in this direction because they want to be heard and seen. This can benefit them in other business ventures they own.
So no, not all owners have the same agenda.
Related: How has technology changed the way we watch sports?