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On publicly-traded sports companies
Excerpted from Moag & Co.'s Industry Analysis Winter 2002 edition
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» Major League Baseball's new labor deal
» The full Winter 2002 sports business report from Moag & Co. (Adobe Acrobat reader required)
» Baseball: Two strikes and out? (Adobe Acrobat reader required)

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A. Publicly-traded sports companies generally

The sports industry is not widely represented in the public equity markets. Sports franchises generally are privately owned investments. The Sporting 40 Index, however, tracks publicly traded companies that have links to the sports industry. The index breaks sports companies into the following eight categories:

  • Media/Team Owners
  • Footwear/Apparel
  • Manufacturers/Licensees
  • Products
  • Facilities
  • Internet
  • Motorsports
  • Service

The Sporting 40 Index has outperformed the Dow Jones Industrial Average (DJIA), Nasdaq, and S&P 500 since March 2000. Until 2001, the Sporting 40 mimicked, but underperformed, the S&P 500 and the DJIA. As the U.S. economy moved toward a recession in early 2001, the Sporting 40 index began to outperform first the S&P 500 and, shortly thereafter, the DJIA.

B. Specific publicly-traded sports sectors

We have concentrated on three sports-focused industry segments for this analysis: sports-related products, sport facilities operators, and motorsports.

Sports-related products

Sports-related product companies include companies that produce content-oriented products such as scoreboards or digital viewing enhancements, and do not include equipment manufacturers. These companies maintain a similar performance record versus the S&P 500. They underperformed the S&P 500 until the overall U.S. economy appeared heading toward a recession. During March 2001, shares of sports product companies began to outperform the S&P 500 and currently are trading over 20% higher than the S&P 500 index.

Sports facilities

Operators of sports facilities, such as Churchill Downs, have outperformed the S&P 500 recently. From June 2000 through late November 2000, facilities companies outperformed the S&P 500 by approximately 20%. Beginning in 2Q 2001, facilities companies began to steadily outperform the S&P 500. Both facilities companies and the S&P 500 were trading below their relative values at the beginning of 2001; however, shares of facilities companies are performing comparatively better than the S&P.

Motorsports

The motorsports sector is currently trading at values 40% greater than those of the S&P 500. Similar to other sectors in the community of publicly traded sports companies, motorsports companies underperformed the broader market until signs of a declining economy appeared. At the beginning of 2Q 2001, motorsports companies surpassed the S&P 500 performance and continue to trade at values well beyond the S&P index.


Sporting 40 Index, Street & Smith's Sports Business Journal
CompanyTicker Symbol
FRANCHISES
Boston CelticsBOS
Orlando PredatorsPRED
MEDIA/TEAM OWNERS
AOL Time WarnerAOL
CablevisionCVC
ComcastCMCSK
Fox Entertainment GroupFOX
Gaylord EntertainmentGET
Tribune Co. TRB
Walt DisneyDIS
FOOTWEAR/APPAREL
Fila HoldingsFLH
NikeNKE
PumaPMMAY
ReebokRBK
RussellRML
MANUFACTURERS/LICENSEES
Amer GroupAGPDY
Callaway GolfELY
Fotoball USAFUSA
Head N.V.HED
RawlingsRAWL
ToppsTOPP
PRODUCTS
Electronic ArtsERTS
DaktronicsDAKT
Princeton Video ImagePVII
FACILITIES
AramarkRMK
Churchill DownsCHDN
Magna EntertainmentMIEC
INTERNET
GSI CommerceGSIC
SportsLine.comSPLN
Tickets.comTIXX
MOTORSPORTS
Action PerformanceATN
CARTMPH
Dover Downs EntertainmentDVD
Intíl SpeedwayISCA
Speedway MotorsportsTRK
Team SportsTSPT
SERVICE
Bull Run BULL
Clear Channel CCU
Foot Locker Z
Interpublic Group IPG
The Sports Authority TSA
TRADING OVERSEAS
BSkyB Group (London) BSY
Manchester United (London) MNU
Wembley (London) WMY
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