From Sporting Glory to Investment Success: How Sports Stars are Dominating the Business Arena

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Sports stars often remain connected to their industry after their career ends – in the form of an investment. An expert explains the background.

“I spent a lot of money on alcohol, women and fast cars, and I just squandered the rest.” Just like English football legend George Best, sports stars in the past have not been known for being clever with their money.

That has changed today. And, unsurprisingly, ex-athletes invest most often in the sports industry. Former ski dominator Lindsey Vonn recently announced her involvement in soccer with the US women’s team Utah Royals. Current and former sports greats such as Lewis Hamilton, David Beckham, Patrick Mahomes, Michael Jordan and Serena Williams are also involved in sports clubs.

Legend: He also parked his money in baseball NFL quarterback Patrick Mahomes, here in the jersey of the Kansas City Royals baseball team, was already investing during his playing days. Reuters/USA Today Sports

Christian Lang, head of sports management at the University of St. Gallen, explains: “They have a certain level of expertise in the sports market because they have seen everything themselves and had a look behind the scenes. Now they want to bring in this knowledge.”

For financial reasons, I would not advise Roger Federer to invest in FC Basel.

Another important thing: Former sports stars usually have the necessary change. According to Lang, the passion for sport is not the primary focus of such investments. Rather, the familiar faces hope that their participation will pay off in the long term.

Crisis-proof and lucrative

«It is said that the sports industry is the gold of the modern era. It is relatively crisis-proof. After Corona, it experienced strong growth again, which is why it is attractive for investments,” says Lang.

The situation on the Swiss sports market is more complicated. In football, for example, almost every major club is struggling with a structural deficit. That’s why it’s difficult to stay in the black.

Lang explains: “For financial reasons, I would not advise Roger Federer to invest in FC Basel. But absolutely for emotional reasons.”

2024-03-18 18:09:29
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