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
28.48B -0.43%
Consumer Non-Cyclical
Other Food Retail & Distribution
10.75B +4.12%
Technology
Other Internet Services
720B +4.76%
Industrials
Other Aerospace & Defense
342B +6.23%
Financials
Other Consumer Lending
804M +17.56%
Consumer Cyclical
Sports & Outdoor Footwear
34.54B -3.73%
Consumer Cyclical
Other Apparel & Accessories
6.47B +2.30%
Technology
Other Communications & Networking
64.23B +2.00%
Consumer Cyclical
Casinos
1.53B +1.26%
Technology
Other Wireless Telecommunications Services
168B -6.20%
Consumer Cyclical
Other Broadcasting
201B -0.69%
Industrials
Other Air Freight & Logistics
73.34B +7.20%
Industrials
Transaction & Payment Services
3.02B -1.18%
Consumer Non-Cyclical
Other Non-Alcoholic Beverages
303B +1.90%
Consumer Cyclical
Quick Service Restaurants
43.57B +3.36%
Financials
Other Property & Casualty Insurance
54.6B -5.04%
Technology
Other Integrated Telecommunications Services
168B -4.22%
Financials
Other Banks
883B -3.51%
Consumer Cyclical
Motorcycles & Scooters
2.46B +2.98%
Financials
Other Banks
87.63B +0.29%
Consumer Cyclical
Quick Service Restaurants
218B +1.25%
Consumer Non-Cyclical
Other Brewers
130B +4.52%
Consumer Cyclical
Sports & Outdoor Footwear
97.17B +4.07%
Consumer Cyclical
Other Tires & Rubber Products
2.62B +4.22%
Consumer Non-Cyclical
Carbonated Soft Drinks
196B -0.03%
- - 34.63B -
Financials
Other Banks
55.69B -6.99%
Consumer Cyclical
Other Apparel & Accessories
2.33B +12.88%

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Heatmap

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Sector allocation

Ratings chart - Surperformance

Ratings ESG MSCI

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