Carburton Street, London -- Ever felt jealous over the money sports stars earn? If so, there's a growing sector of the stock market just for you. Even if your physical exercise is limited to looking for the television remote control, you can cash in on the burgeoning pay packets of the country's finest sporting talent. Listed on the Alternative Investment Market, there are a handful of small management firms whose profits are linked to the earning power of sporting greats.
One of the largest listed companies in this niche industry is CSS Stellar (LSE: CSS). CSS represents ex-rower Sir Stephen Redgrave, Grand Prix newcomer Allan McNish and soccer player Steve McManaman. Amongst many other services, the group provides financial advice to footballers, an industry very much in a growth phase at present. Aided by acquisitions, CSS profits are expected to double this year, with 27% earnings growth expected the year after. However, CSS shares presently stand on a forward price to earnings ratio (P/E) of 24.
Playing alongside CSS in the provision of financial advice for footballers is Kingsbridge (LSE: KNG). Kingsbridge recently bought one of its main rivals and now describes itself as "undoubtedly the No. 1 football related IFA". Although famous client names and broker forecasts are thin on the ground, you can safely say Kingsbridge exhibits chunky earnings growth potential and a P/E of well over 20.
Football is also important to Proactive Sports (LSE: PAS). It currently has over 200 players on its books, with offices in the UK, Holland, Denmark and Greece. The game's transfer market is a prime profit generator, as the group provides advice to players and clubs during transfer negotiations. Peter Schmeichel's move from Sporting Lisbon to Aston Villa was one transfer Poactive had a hand in. Although profits are expected to grow by 'only' 15% next year, Proactive shares current sit on a very reasonable P/E of 11.
But perhaps the most exciting company in this industry is Sports Entertainment & Media (LSE: SM.). Although the company has the obligatory footballers on its books (it renegotiated Thierry Henry's contract with Arsenal), but Sports Entertainment runs the boxing business affairs of Lennox Lewis. Although group profits of £2m are expected in 2002, should Lewis deliver a knockout blow to Mike Tyson next year, Sports Entertainment shareholders could be punching the air with delight. At the moment, the shares languish on a P/E of 14.
More: AIM Companies discussion board
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