“This is the basic premise for investing in companies that partner with ProSports Leagues, that these companies are getting a better ROI on key marketing dollars spent than their competitors which has the potential to drive revenue and profitability,” Fullerton said.
As the sports leagues continue to grow, companies will have the opportunity to partner with the various franchises to engage and connect with a broader customer base. Currently, over 55% of American’s consider themselves sports fans.
As a way to participate in this potential growth opportunity, Paul Starkey, Founder of Indexxchange and Sports ETFs Advisory Board Member for SportsETFs, pointed to the ProSports Sponsors ETF (BATS: FANZ), which is comprised of companies that are official sponsors of the major professional football, baseball, hockey and basketball leagues in the United States, along with national sports broadcasters with rights agreements with such leagues.
The ETF will try to take advantage of the growth potential of these companies partnered with major sports leagues and encompass market exposure in several sectors, including large tilts toward consumer discretionary, consumer staples, information technology and financials.
Financial advisors who are interested in learning more about opportunities in sports advertising can watch the webcast here on demand.