Athletes that are looking for endorsement deals and sponsorships can benefit from their target companies already today. Most athletes have a very profound knowledge of the merchandise sold by sport companies and can easily tell why one brand is better than the other. Even though emotional opinions are not always good financial indicators, this knowledge might be beneficial when buying shares in sport companies. If there is a company that you worship, then why not own a piece of it?
Puma, Reebok, Nike and Adidas used to offer very similar products when I was a teenager. Now it seems as if only Nike has evolved. All other companies are still using the same materials and fabrics as ten years ago. Reebok added some cool crossfit designs and Puma did their race car shoes and Usain Bolt items. Under Armour is making a name for itself but the clothing is very basic.
So currently my money is in Nike. Literally.
I'm not sponsored by Nike. I sponsor them.
Below you can see how Nike stock price has evolved the past five years. Can you see a pattern? If you are worried about buying the stock when the price is at an all time high, you can decrease the timing risk by dividing your purchase into several parts. Buy some stock today and some stock in three months, for instance.
Historical value increases are no guarantee for future value increases. And oh yeah, the quarterly dividend is not shown in the graph.
For some reason Nike is currently not doing any cool graphics on their clothing. Luckily, we got Explosive Mode for that.