s I’ve spent more time working full-time, stock prices have become a frequent conversation. The importance of beginning to invest and build that stock portfolio “is essential.” I’ll be honest, I don’t fully care.
I recognize this as something I have to do, however, so I’ll do it and put in the research, but how about already utilizing the knowledge I have. I’m reading all sports every day, so, why not invest in sports teams? Seriously, what if sports teams were publicly traded on the stock market?
This excited me, to say the least. I immediately thought about all the times I’ve heard a sports announcer say “I’m buying all the stock in that guy.” I’m already getting giddy just imagining the money we could make from buying stocks.
That brings me to the list I’m about to share with you. I ranked each team in terms of stock price, from highest (1) to lowest (30). I considered a multitude of factors but a few stood out.
- Current Success
- Future Success probability
- Front-office/Ownership abilities
- Star power
I tended to give a higher value towards current success, as long as the team hadn’t fully mortgaged their future. I also think certain stars bring a value to a team’s stock that’s hard to quantify. The excitement of a fan going to a Rockets game to see whatever Steph Curry could do on any given night brings a ton of value. There’s not a doubt that top players single-handedly swing a stock.
I also thought about how a big market could impact the stock ranking of a team. However, I would think in today’s NBA that becomes less and less important. We have megastars playing in smaller markets and signing extensions (see: Westbrook, Russell). The impact of social media today and constant coverage has made small markets feel even bigger. As well, the sharing of revenues helps smaller market teams. On the flip side of that, we look at a team like Oklahoma City who lost Harden due to fear of the luxury tax. So, I couldn’t rank a team like LA/NY in the bottom-third of the league, regardless of lack of success.
With each team I asked 4 questions:
- Why they’re ranked where they are
- How they could rise in value
- How they could drop in value
- Final Decree (buy/sell decision)
These will be released in 3 installments and begin to trickle out sometime in February.