Investment Themes

Basketball: Reach new heights with the NBA

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Investment Themes

The championship is broadcast in more than 200 countries around the world, driven by the growing number of international players who join the NBA every year. The business model of the National Basketball Association is complicated, yet simple. There are four main sources of income:

-sponsoring
-TV rights
-ticket sales
-merchandising (by-products, materials, equipment, etc.)

Investing in the American championship means investing in a panel of partner companies. For example, when basketball is exported, it is a whole brand that is exported, including through the sale of jerseys. Since 2007, these are accompanied by the logo of the company that acts as a sponsor. An estimated one billion people watch at least one game per season and revenues from abroad are increasing by 20% each year. China is a huge market, with more than 300 million players across the country and a community of "super fans".

In October 2014, the NBA announced the signing of a $24 billion contract extension ($2.7 billion per year for 9 years) with ESPN, ABC, Turner Sports (TNT), making these rights the highest in the world after the broadcasting rights of the NFL (National Football Association) and on an equal footing with the rights of the Premier League (English football league). On average, an NBA franchise is worth $1.9 billion (+13% from 2018 to 2019), about 3 times the level of 5 years ago. All teams have doubled the value of their broadcast contracts with local TV in recent seasons (Brooklyn, Charlotte, Dallas or Portland) and other franchises are expected to follow suit.

In terms of financial security, the Golden State Warriors have secured their future revenues with $2 billion in mandatory revenues from sponsors, hotels and ticket sales. New York Knicks, although dramatic in sporting terms (only 2 finals played in 18 years) remains the richest club. NBA teams are more profitable than ever, with an average EBITDA of $61 million per team (double what it was two years ago).

In this context, this thematic list focuses on the key players who are impacted, both directly and indirectly, by the expansion of the NBA empire. It includes both equipment manufacturers, as well as partner companies and television channels.

Our selection

Consumer Cyclical
Sportswear & Outdoors Clothing
26.21B -10.55%
Consumer Non-Cyclical
Other Food Retail & Distribution
10.98B +4.18%
Industrials
Other Aerospace & Defense
338B +5.41%
Consumer Cyclical
Other Apparel & Accessories
4.39B -30.05%
Consumer Cyclical
Quick Service Restaurants
39.61B -3.09%
Technology
Other Internet Services
498B -28.95%
Consumer Non-Cyclical
Other Brewers
154B +23.13%
Consumer Cyclical
Sports & Outdoor Footwear
29.61B -17.21%
Technology
Other Communications & Networking
76.11B +21.23%
Financials
Other Banks
943B +9.83%
Consumer Cyclical
Casinos
1.52B -4.55%
Consumer Cyclical
Other Broadcasting
180B -8.46%
Technology
Other Internet Services
10.2B -27.93%
Technology
Other Wireless Telecommunications Services
172B +2.56%
Consumer Non-Cyclical
Carbonated Soft Drinks
187B -4.72%
Consumer Non-Cyclical
Other Non-Alcoholic Beverages
377B +26.91%
Consumer Cyclical
Quick Service Restaurants
179B -16.54%
Industrials
Transaction & Payment Services
2.16B -25.51%
Industrials
Other Air Freight & Logistics
73.18B +6.71%
Financials
Other Property & Casualty Insurance
64.12B +23.26%
Financials
Other Banks
88.6B +2.27%
Technology
Other Integrated Telecommunications Services
207B +23.55%
Consumer Cyclical
Sports & Outdoor Footwear
55.41B -42.01%
Consumer Cyclical
Motorcycles & Scooters
2.78B +28.70%
Financials
Other Banks
45.81B -25.80%

News of the components

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