The $100 per share reward paid to stockholders when their team wins the championship.
A championship payout is the fixed reward given to holders of a winning team's shares at the conclusion of the championship. In a sports stock market, this payout is what gives team shares their fundamental value. Since each share pays a fixed amount if the team wins, the expected value of a share is directly tied to the team's probability of winning. Shares of non-winning teams become worthless at the end of the championship.
On Sporty Stocks, each share pays out exactly $100 in play money if the team wins the Super Bowl (NFL), Stanley Cup (NHL), or NBA Finals (NBA). This fixed payout is what determines stock prices. If you buy a team at $10 and they win, you earn $100 per share - a 10x return on your investment.
You own 200 shares of the Edmonton Oilers, purchased at an average price of $5.00 (total cost: $1,000). The Oilers win the Stanley Cup. Each of your 200 shares pays out $100, giving you $20,000 in play money. Your profit is $19,000.
Shares of teams that do not win the championship become worthless at the end of the season. However, you can sell these shares anytime before the season ends to recover some of your investment.
The payout happens automatically when a team wins their championship. For NFL it is the Super Bowl, for NHL it is the Stanley Cup, and for NBA it is the NBA Finals.
Championship Probability
The statistical likelihood that a team will win their league championship, expressed as a percentage.
Team Shares
Individual units of ownership in a sports team stock that can be bought and sold on the market.
Sports Stocks
Tradeable shares of professional sports teams whose prices move based on championship odds.
Stock Price
The current market value of one share of a team, determined by championship probability.
Put your knowledge into practice. Get $10,000 in play money and trade NFL, NHL, and NBA team shares.