Trophy assets are those assets that are incredibly rare and in high demand for investors. Because of how few chances investors get to buy them, when they go on sale, we often see a bidding war.
Whether it is a Picasso painting or a house by the beach, the scarcity of these assets have made them great investments. And there these days there is a no better trophy asset than a professional sports team.
This article explores two of the trophy assets that are likely to go on sale this year, English Premier League football team Manchester United (NYSE: MANU) and wrestling league World Wrestling Entertainment (NYSE: WWE).
There were a few examples from 2022 that showed the excitement around professional sports teams. The English Premier League’s Chelsea and the National Football League’s Denver Broncos were two of the most sought after clubs and both sold for well above their Forbes valuation.
If these two trophy assets do sell in 2023 (and, importantly, it is still an ‘if’) we should expect similar bidding wars as billionaires, asset managers and sovereign wealth funds try to take their opportunity.
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