Summary: Investing in the sports industry can be an exciting way to combine love for the game with potential financial gains. However, investing in MLB isn’t possible, as it’s not traded publicly. You can instead invest indirectly in it through other sports stocks by using a brokerage account such as eToro.
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eToro USA is registered with FINRA for securities trading.
About MLB
Major League Baseball (MLB) stands as one of the most popular professional sports leagues in the United States and beyond. It comprises 30 teams that are divided into two leagues: the National League (NL) and the American League (AL). MLB’s appeal stems from its rich history, competitive matches, and loyal fan base.
MLB IPO
An initial public offering (IPO) marks the first time a company or organization offers its shares to the public on a stock exchange. Therefore, MLB, as a sports league, may decide to go public to raise funds for various purposes, including infrastructure development, team investments, and league expansion.
However, as of 2024, MLB has not yet gone public. This means that you can’t buy direct MLB stocks on a stock exchange like you would for publicly traded companies like Apple or Meta Platforms. Instead, investing in the sports industry, including MLB, often involves a slightly different approach.
How to buy MLB stock: Step-by-step
While you can’t directly purchase MLB stocks, you can consider alternative methods that allow you to invest in the sports industry. Here’s a step-by-step guide to help you get started:
Step 1: Look for alternatives
As mentioned, it’s not possible to buy MLB stock as it’s not traded publicly. However, you can invest in MLB indirectly by purchasing sports-related stocks. Of course, there are many of them out there, so it’s key to carefully research them and find out which ones suit your investment profile the best. Some sports-related stocks worth considering include:
- MSG Sports: Madison Square Garden Sports Corp. is a company that owns and operates professional sports teams, such as the New York Knicks and the New York Rangers. Investing in its stock (NYSE: MSGS) can provide you exposure to the sports and entertainment industry, particularly within the major metropolitan markets like NYC. Read a dedicated guide on How to Buy MSG Sports Stock;
- Genius Sports: Genius Sports Group is a tech company that specializes in providing data, technology, and services to the sports betting and media industries. Investing in its stock (NYSE: GENI) can be a way to tap into the growing sports betting and gambling industry. You can check out our How to Buy Genius Sports Stock guide to get more info on how to invest in the company;
- Academy Sports + Outdoors: Academy Sports + Outdoors is a sporting goods and outdoor lifestyle retailer with a focus on offering a wide range of products related to sports, recreation, and outdoor activities. Investing in its stock (NYSE: ASO) can provide exposure to the retail side of the sports industry, which has a consistent demand. In face, feel free to check out our Hot to Buy Academy Sports Stock guide.
Note
Step 2: Choose a brokerage and open an account
To invest in the sports industry, including any potential MLB-related opportunities, you’ll need to use a brokerage platform. However, be careful to opt for one that offers sport stocks, has a license, and has a user-friendly interface.
Our go-to brokerage for buying sports stocks is eToro. Aside from having access to the stocks we’ve mentioned above, it’s also licensed by FinCEN. Furthermore, it’s home to over 30 million user accounts worldwide, and it offers:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Step 3: Deposit funds
Once you have decided on a brokerage that suits your investment profile the best and opened an account, you’ll need to fund it. This process is usually straightforward, as most broker platforms allow for various funding options. Therefore, deposit the money for the stock you wish to purchase, as well as for any additional fees.
Step 4: Make your investment
Finally, to make your investment, you’ll need to log into your newly-made brokerage account and search for the company you wish to invest in. To do so, you should find the search option and type in the ticker symbol, which is a code that identifies stocks. For example, MSGS stands for MSG Sports.
Keep in mind that you’ll need to choose between different order types, such as:
- Market order: Executes the trade immediately at the current market price, regardless of the price’s specific value;
- Limit order: Sets a specific price at which the investor is willing to buy or sell, and the trade is executed only if the market reaches or betters that price.
Note
Pros and cons of buying sports stocks
Before diving into investing in sports stocks, it’s essential to weigh the pros and cons:
Pros
- Passion investment: If you’re a dedicated sports fan, investing in the sports industry can be emotionally rewarding;
- Diversification: Sports investments can add diversity to your investment portfolio;
- Potential growth: The sports sector, including leagues like MLB, can experience growth as interest in sports continues to expand.
Cons
- Risk: Like all investments, sports-related investments come with risks, including market volatility and potential losses;
- Limited influence: Unlike direct stock ownership, these investments might not grant you voting rights or direct influence on team or league decisions;
- Market dependency: The success of sports investments can be tied to the overall performance of the sports industry.
What to avoid when buying stock
As you consider investing in sports stocks or related investments, keep in mind these common mistakes to avoid:
- Lack of research: Don’t invest blindly. Research the investment thoroughly and understand its potential risks and rewards;
- Overinvesting: Avoid putting all your funds into sports-related investments. Diversification is key to managing risk;
- Impulsive decisions: Emotional decisions can lead to poor investment choices. Stay rational and stick to your investment strategy;
- Neglecting fees: Be aware of any fees associated with buying, selling, or holding the investment. High fees can eat into your returns.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy MLB stock
Can I buy MLB stocks directly?
As of 2024, MLB has not yet gone public, so you can’t buy direct MLB stocks. However, you can explore sports-related investments through brokerage platforms like eToro.
How do I choose a brokerage?
Look for a reputable brokerage that offers access to sports-related investments or ETFs. Consider factors like fees, investment options, and ease of use.
Are sports investments risky?
Yes, like all investments, sports-related investments come with risks. Various factors like economic conditions and public interest can influence the sports industry’s performance.
Can I make money by investing in sports stocks?
Yes, it’s possible to make money, but there are no guarantees. The value of your investments can go up or down based on market conditions.
What's the minimum amount for investing in sports stocks?
The minimum amount can vary depending on the brokerage and the specific investment option. Some brokerages might have low minimum deposit requirements.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
