The National Football League is the king of professional sports in America. With millions of dedicated fans, massive media deals, and packed stadiums, the NFL is an absolute cash cow. But since the NFL itself is a private organization, there’s no NFL share price you can buy into.
Luckily, you can still profit from the NFL’s success by investing in related public companies. Keep reading to discover 5 winning NFL stocks that are scoring big financial gains thanks to their football connections.
How the NFL Became a Financial Juggernaut
With over $15 billion in yearly revenue, the NFL dominates the sports world. Half of the NFL’s huge profits come from lucrative TV broadcasting deals. The league splits this TV money evenly among all 32 teams.
After that, each franchise makes further millions from ticket sales, sponsorships, merchandising, and more. The stadium itself also pulls in cash from concessions, naming rights, and premium seating.
On game days, money trades hands in dozens of ways. From multi-million dollar endorsement deals to fans buying $10 hot dogs, there’s no shortage of financial opportunities surrounding football.
Once you understand all the components driving the NFL money machine, you can identify great stocks to profit from pigskin.
Big Brand Sponsorships Score Touchdowns
One way to tap into the NFL is by investing in major consumer brands that sponsor the league.
Nike (NKE) has an exclusive deal to supply uniforms and sideline apparel for all NFL teams through 2028. Imagine the constant Nike exposure on TV with coaches and players completely outfitted in the Swoosh logo.
Nike likely paid close to $1 billion for NFL rights. But that huge sum will pay off thanks to the unrivaled branding power of being the league’s sole apparel provider.
Stadium naming rights also offer valuable NFL exposure. SoFi recently acquired rights to the new Los Angeles football arena. Having both the Chargers and Rams as tenants gives the online finance company tons of brand visibility.
SoFi Uses Football to Fuel FinTech Growth
SoFi Technologies (SOFI) is a hot financial technology company aiming to disrupt traditional banking. SoFi landed naming rights for the flashy new SoFi Stadium, which will host Super Bowls and major events.
The stadium deal gives SoFi a huge marketing boost. This helps drive awareness and growth for SoFi’s main products like student loan refinancing, investing accounts, and personal loans.
SoFi is also expanding into a full-service banking system after recently securing a national bank charter. Between major business initiatives and its stadium naming rights, SoFi should continue seeing rapid user growth. That makes SOFI stock compelling.
Sports Betting: The NFL’s Next Big Play
Historically, the NFL opposed gambling on games to protect integrity. But with legal sports betting rapidly expanding, the NFL is now embracing bookmakers as new revenue drivers.
There’s massive untapped potential for the NFL to attract casual bettors who otherwise don’t follow football. People who enjoy wagering small amounts for entertainment could become a huge new NFL audience.
In-stadium sportsbooks also open profitable new avenues on game day. Overall, the NFL is wisely positioning itself to capitalize as sports gambling keeps spreading.
DraftKings and FanDuel: Betting Big on Football
DraftKings (DKNG) and FanDuel (PDYPY) stand to win big thanks to their exclusive NFL sports betting partnerships.
Both companies operate popular daily fantasy football contests. Now they are major players in the surging real-money NFL betting market too.
Their partnerships allow DraftKings and FanDuel to leverage NFL content and data to drive user engagement. As football wagering expands, expect these two giants to dominate the NFL betting landscape for years to come.
Caesars Enters the Game With Huge Casino Network
Caesars Entertainment (CZR) is the only casino company that’s an official NFL betting partner. This deal allows Caesars to offer NFL bets across its 50+ casino properties.
People visiting Caesars casinos for NFL wagers are likely to stick around after betting to eat, drink, and play casino games. That means NFL partnerships could significantly boost casino revenue on game days.
Owning a large gaming and hospitality network gives Caesars inherent advantages to profit from sports gambling’s growth. Caesars also recently partnered with the NBA, showing its eagerness to leverage pro sports wagering.
Arena Stocks: Concessions and Merch Boost Profits
Operating concessions and merchandise sales at NFL stadiums can deliver big profits. Market leader Legends handles food, beverage, retail, and sponsorships at major venues like SoFi Stadium.
Companies like Aramark (ARMK) and Delaware North also run large concession operations at NFL arenas. They retain a percentage of all sales on items like beer and hot dogs. More fans equals more profits.
Stadium concessionaires benefit from NFL attendance growth and rising ticket prices. And as more states legalize sports betting, concession revenues could get another boost from bettors sticking around longer on game days to wager.
ESPN and TV: Ratings Mean Big Advertising Dollars
The NFL’s huge national TV deals bring in billions annually. Television networks like ESPN pay top dollar for the right to broadcast live NFL games, which are consistently top-rated programs.
Disney owns ESPN, which will air 19 regular Monday Night Football games per season through 2033. High NFL ratings allow ESPN to charge more for commercials and make ESPN a must-have channel for many viewers.
The major broadcast and cable networks that air NFL games should continue raking in money as fans obsess over football and advertisers pay premium rates to reach those engaged audiences.
NFL Players Score Endorsement Deals
The NFL’s rising popularity has created massive marketing and endorsement opportunities. The league’s superstars can make tens of millions annually in off-field income from companies seeking an athlete partnership.
Jersey sales are also big business. Apparel brands like Nike fight to sign contracts with individual NFL stars and sell licensed jerseys bearing players’ names and numbers.
Investing in apparel companies tied to player endorsements and merchandising can further let you score financial gains from the NFL’s fame.
The NFL has become an absolute gold mine, with huge profits funneled to teams, brands, media networks, venues, and more. Savvy investors can seize a piece of the NFL money machine by buying stocks strategically positioned to ride pro football’s success.
