Major sports events like the Olympics can drive economic growth by generating significant income from tourism, sponsorships, and broadcasting rights, benefiting local and global economies and offering unique investment opportunities.
Sports across sectors
The sports industry covers a range of sectors, including sports apparel companies such as Under Armour, Adidas and Nike (who produce equipment in addition to sportswear) as well as media networks like NBC Sports and Disney-owned ESPN. Taking a position in these companies offers individuals traders and investors an opportunity to potentially benefit from the ever-expanding sports industry.
On the move
The travel industry is often boosted by major sporting events, even more in the case of the Olympics, which is without doubt a huge spectacle with truly global reach. For example, holiday rental company Airbnb is a major sponsor of the Paris Olympics, while airlines Air France and Air Liquide are also among a long list of sponsors had.
Other companies that could potentially benefit from the Olympics include travel sites like Expedia and Booking.com, as well as airlines like Delta Air Lines, American Air Lines and Air France, the latter being the official airline partner of the Paris Olympics and Paralympic Games.
Advertising opportunities
Sponsorships and advertising are crucial to sports financing, with giants like Visa and Coca-Cola boosting their global visibility and aligning their brands with the inherent values and communal experiences of sports. Trading or investing in companies with major sponsorship deals, or the agencies that broker them, could be an interesting way to diversify a portfolio and experiment with different sectors.
Sports and technology
More than ever, technology has been a hot talking point on the stock market, and the integration of technology in sports, from data analytics and wearables to the billion-dollar e-sports industry, is creating new investment opportunities.
Events like the Olympics put these technological developments on a global stage, giving tech companies involved with the Games (like sponsors Samsung, Atos and Intel) worldwide attention and drumming up further interest in their innovations, potentially creating further financial opportunities for tech-savvy investors.
A summer of sports with CMC Markets
CMC Markets is the proud sponsor of Broadgate Exchange Square’s Summer of Sport in the City of London.
Until 8 September, we’ll have a screen showing some of the summer’s biggest sporting events, including the Olympics, the Paralympics, and the 2024 Hundred cricket action.
Find out more about our Summer of Sport in the City.
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