This Stock’s Slide Is an Omen for Sports Teams
From Yahoo Finance.: 2025-04-03 13:17:00
Thursday’s market-wide selloff post-Trump’s tariffs announcement will impact sports stocks and teams. Vivid Seats stock dropped 10% due to concerns about economic slowdown affecting non-essential spending on live events. Despite economic downturns, sports teams have historically maintained value. Vivid Seats relies heavily on live event demand, with sports contributing 31% to its revenue.
New tariffs threaten in-person sporting attendance growth, as Fitch’s annual “global sports outlook” highlighted live event demand. U.S. leagues vary in financial reliance on live events – NFL at 17%, NBA at 26%, MLB at 31%, MLS at 39%, NHL at 44%. Stocks tied to sports team ownership saw smaller dips than Vivid Seats.
Atlanta Braves Holdings and MSG Sports experienced 3% stock drops, reflecting the market selloff’s impact on sports team ownership. U.S. sports leagues show varying levels of reliance on ticket sales for revenue.