The current market value of one share of a team, determined by championship probability.
A stock price is the current cost to purchase one share of a particular team. In a sports stock market, prices are primarily driven by championship probability rather than supply and demand. As a team's chances of winning the championship change, their stock price adjusts accordingly. Prices can range from less than $1 for heavy underdogs to over $50 for strong favorites.
Stock prices on Sporty Stocks are calculated using the formula: Price = Championship Probability x $100 x 0.95. This means a team with a 50% championship probability would be priced at $47.50. The 0.95 multiplier represents the house edge, similar to how real markets have transaction costs.
The Oklahoma City Thunder have a 25% chance to win the NBA Finals. Their stock price would be 0.25 x $100 x 0.95 = $23.75 per share. If an injury to a key player drops their probability to 18%, the price adjusts to 0.18 x $100 x 0.95 = $17.10.
Stock prices change because championship probabilities change. When a team wins games, makes trades, or gets healthy players back, their odds improve and price rises. Losses and injuries cause prices to drop.
The maximum theoretical price is $95 (95% championship probability). In practice, even strong favorites rarely exceed $50-60 because there is always uncertainty in sports.
Championship Probability
The statistical likelihood that a team will win their league championship, expressed as a percentage.
Price History
A historical record of a stock's price changes over time, typically displayed as a chart.
Buy Low, Sell High
The fundamental trading strategy of purchasing assets at a low price and selling them after the price increases.
Market Volatility
The degree of rapid and unpredictable price changes in a market or individual stock.
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