Sports fans can take a stake in support network
AS 36 players line up on the green of the MCG today, it’s worth remembering the myriad enterprises that enable sportspeople to leap higher and kick further – while also tending their wounds.
Unlike in the US or the UK it’s not possible for fans to “own” a football team, with the exception of the Asx-listed NRL club Brisbane Broncos (BBL). With the top 20 holders (including News Corporation on 68 per cent) accounting for 95 per cent of the register, liquidity is minuscule.
However there’s no shortage of stocks exposed to the behind-the-scenes sports activities.
For example, Cogstate (ASX: CGS) has developed a more reliable concussion test than the old “what day of the week is it” routine?
A must-have device in a club doctor’s toolbox, the Cogstate test is a screen-based tool that can deliver a result within 15 minutes.
Footy codes have several billion reasons to take concussion more seriously, given the size of negligence payouts in the US. Further refining concussion measurement, HITIQ (ASX:HIQ) listed in June last year on the back of its concussion-detecting analytics that are embedded in a mouth guard. HITIQ has concussion management and detection tie ups with the AFL, as well as offshore codes including ice hockey, lacrosse, US football and mixed martial arts. The company is also “exclusive concussion management technology partner” for the Rugby World Cup, which kicks off on October 15.
In the days of yore, a decent performance used to be known as “kicking a bag”, but the folk at Catapult Group (ASX:CAT) are more scientific. Catapult was an early mover in wearable devices that capture players’ performance data. Having signed up Hawthorn Football Club as its first client in 2007, Catapult says it now has 3400 professional teams as customers.
When a player is cruelly felled, the paramedics may reach for the “green whistle”, which is not a reference to the umpire but to a device that dispenses the pain killer Penthrox. Medical Developments (ASX:MVP) owns the rights to Penthrox, which is now sold in dozens of countries.
While sport is meant to be nourishing for the body and soul, it’s not exactly the case for joints. Paradigm Pharmaceuticals (ASX:PAR) is lifting the hopes of superannuated footballers with its anti-inflammatory lead compound to treat knees and joints, pentosan polysulfate sodium (PPS). While PPS is yet to be approved, it hasn’t stopped dozens of former AFL players using the drug under a special access scheme.
As with game plans, often the best medical devices are the simple one. Take Rhinomed (ASX:RNO), which developed Turbine, a clip-like device that attaches to the nose and dilates the nostril, allowing athletes (typically cyclists) to inhale more air. While Turbine remains on sale, Rhinomed has moved on to devices for sleep apnoea and Covid testing.
Not all of these stocks have kicked on but it’s not over until the final siren.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions