Summary: Buying National Basketball Association (NBA) stock and combining your passion for sports and investing might seem like a perfect investment option. Unfortunately, NBA is not a publicly traded company, so you can’t buy NBA stock directly. However, as this sports league is tightly associated with a number of large, publicly traded companies, you can invest in them and gain exposure to the NBA indirectly. To do that, investors can register an account at online stock trading platforms such as eToro.
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About NBA
league comprising thirty teams in the United States and Canada. The association has a long history and is considered one of the most premiere basketball (and sports in general) leagues in the world, being worth around $90 billion and enjoying a massive global fan base spanning over 200 countries.
NBA IPO
An Initial Public Offering (IPO) refers to the period when a company offers its shares to the public on a stock exchange for the first time. However, as of December 2023, NBA has not yet gone public. That means you can’t invest in the NBA directly, as there is no such thing as a unitary NBA stock. Instead, you will have to take an alternative approach and gain exposure to this league indirectly — by investing in some of the companies it is associated with.
How to buy NBA stock: Step-by-step
To buy NBA-associated stock and gain exposure to the sports industry, you can take the following steps:
Note
Step 1: Find an NBA-associated company to invest in
As mentioned, the NBA is not publicly traded, so there is no such thing as an NBA stock. What’s more, there are no NBA teams that are publicly traded, either. This is because the association itself is owned by the very teams it comprises, meaning the owners of said teams have equal stakes in the whole business.
So, how do you invest in the NBA? The most intuitive and convenient way to do so is to invest in some of its sponsors. The NBA is one of the largest sports leagues in the world, so it has a lot of investors vying for dominance in the industry. Among the largest ones, however, are companies such as:
- 2K Sports: 2K Sports is a video game publisher and a subsidiary of Take-Two Entertainment, which owns another major gaming label — Rockstar Games. Take-Two Entertainment is traded on the NASDAQ Stock Market (NASDAQ: TTWO), and it’s one of the better-performing S&P 500 components, which means it could be a good investment venue for those looking to gain exposure to both the gaming and sports industries;
- Nike (NYSE: NKE): Nike needs no introduction, being one of the most recognizable and profitable sports brands in the world. Given its $160.72 billion worth, its reputation, and solid performance as an S&P 100 component, it is hardly surprising that it’s one of the foremost NBA investors. In fact, the company had an eight-year, $1 billion contract with the league. To learn more, read our guide on how to buy Nike stock;
- Pepsico (NASDAQ: PEP): Pepsico is one of the largest multinational food and beverage corporations and an S&P 100 component with a lot of stake in the NBA. In fact, its Starry brand has been named the official drink of the NBA, and the company signed a multi-year sponsorship deal with the NBA, reportedly worth $300 million.
An alternative option
An alternative option would be to invest in a company owned by someone who also owns an NBA team. MSG Sports, for example, is owned by James L. Dolan, the chairman of the New York Knicks. MSG Sports is one of America’s largest sports holding companies and an S&P 600 component that recently hit a record revenue of $887 million on Knicks. To learn more about how to buy MSG Sports stock, you can read our dedicated guide.
Note
Step 2: Find a solid broker and register an account
To invest in a company associated with the NBA, you must choose a solid broker that will give you access to all the relevant sports stocks. There are a lot of brokers available nowadays. So, when trying to choose one based on your investment goals and strategies, consider factors such as:
- Fees;
- Platform accessibility;
- Customer support;
- Trading tool availability;
- Order types;
- Etc.
Our go-to broker for sports investments is eToro, a well-regulated and licensed platform with features such as:
- Commission-free stock trading;
- Over 2,000 stocks from 17 different exchanges;
- Fractional shares;
- Ready-made investment portfolios;
- Social trading.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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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.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 3: Funding your account
Once you have opened your trading account, you will have to fund it before you start adding sports stocks to your portfolio. Each broker has its own set of available payment methods, but usually, you can:
- Transfer money to it from your bank account;
- Use a wire;
- Scan a check;
- Use third-party payment systems like PayPal;
- Etc.
Note
Step 4: Placing an order
Once you have funded your account, you can start placing orders and buying stocks. To do that, simply follow these steps:
- Log in to your broker account;
- Search for the stock you wish to buy using its ticker symbol (or just type in the company name);
- Specify the number of shares you would like to buy;
- Review your order one last time to ensure everything is fine;
- Submit your order for execution.
Note that you’ll have several order options when buying stocks. The two most common ones are:
- Market order: This type of order is recommended for new traders. In essence, it instructs the broker to purchase the stock at its current price. If the stock is available, it will be added to your portfolio immediately;
- Limit order: Limit orders let you specify a target price at which you want to buy the stock. Naturally, the trade will be executed when the price hits your desired numbers.
What to keep in mind when investing in NBA-associated companies
Investing in sports companies is appealing since it gives investors a chance to generate income by investing in something they are passionate about. However, it is important to remember that all investments are risky and that you should put emotions aside when buying stocks. In addition, consider things such as:
- The company’s business model: Make sure how much the company actually depends on the NBA sponsorships. Ideally, you should invest in a company with a multi-asset portfolio with a solid presence in more than one sector;
- Fan sentiment: Sports brands tend to rely on fan loyalty and engagement to generate profit. If the company is falling out of favor with its fan base, maybe it would be wiser to look for alternative investment options;
- Reach: The more global reach a company has, the better, especially since NBA enjoys global popularity.
Pros and cons of investing in NBA-related stocks
Pros
- Some companies that have invested in the NBA have solid growth potential and revenue;
- The sports industry is always growing, and NBA is one of the most popular sports leagues in the world;
- It’s a good way to diversify your portfolio and gain exposure to multiple industries at the same time. For example, if you invest in Take-Two Entertainment, you can have a stake in two large industries, namely gaming and sports.
Cons
- You will probably have no direct ownership rights in the association or any of the teams it comprises;
- Sports franchises can suffer in adverse economic conditions (e.g., something like the COVID-19 pandemic).
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 NBA stock
Is the NBA a publicly traded company?
No, the NBA is not a publicly traded company. It is owned by owners of the teams that it comprises.
Can you buy NBA stock directly?
Since the NBA is not a publicly traded company, you cannot buy its stock directly.
How to buy NBA stock?
You cannot buy NBA stock directly. Instead, you can invest in companies that have invested in it or that manage some of the teams it comprises. To do that, you can make an account on online stock trading platforms such as eToro.
Is sports investing worth it?
All investments are inherently risky, and whether they are worth it depends on a number of factors, such as the market conditions, the performance of the company you’re investing in, the status of your portfolio, etc.
What is the NBA stock price?
NBA does not have a publicly traded stock.
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.
