Investment in entertainment companies and shares has often been overlooked by many investors, who operate under the assumption that one has to have access to large sums of capital to venture into this sector and that it is the preserve of only corporate investors. While this is true to some extent, there are now ways for individual investors to make investments and reap the huge returns that this sector is capable of offering.
Strategies for investing in the sports and entertainment sector
The sports and entertainment sector is heavily reliant on fan bases and trends that can be fickle and unpredictable. The risk factor is thus quite high, and as an investor, you need to take account of this risk in your investment strategy.
You can opt to invest in the sector through mutual funds, which allows you to share the risk with other investors. The funds are collected from the individual investors and pooled together in one large investment that is managed by professionals.
You can also invest in films as an individual investor by speculating on the failure or success of a film. You do this by purchasing or selling futures contracts which trade the profits expected to be made from movie openings.
In the sports industry, you can spread the risk by partnering with someone or a group of people, then making the investment together.
Wesley Edens: a sports and entertainment industry success story
Wesley Edens is a principal, founder and Co-Chairman of the Board of Directors of Fortress Investment Group LLC. His company, worth $62 billion, is involved in alternative asset management.
In 2014, business executive Wesley Edens partnered with Marc Lasry to buy the Milwaukee Bucks for an estimated price of $550 million. In so doing, Wesley Edens wanted to make use of the lessons he had learned while building a successful investment firm and turn the sports team into a success story. He has unveiled the strategies he intends to use, which include improving the management of the team’s day-to-day operations, as well as drafting talented new players. Investors can learn much by observing Edens and draw lessons on how to correctly go about sports investing.
Investing in the sports and entertainment sector requires you to have the right investment strategies in place if you are to be successful, including risk management strategies. Once you are prepared, the sector is open to all, both large and small investors, so long as you go for the investment instruments that are best suited to you.