Short read: Tomorrow Is Today

Summer is a great time for a sports fan as most leagues reach their crescendos. This summer would be a particularly happy one for fans of RCB or Arsenal. Even better if like some of us, you support both. Like RCB which first won the IPL last year after 18 years, Arsenal fans have had to wait for 22 years to win the Premier League. Another popular sports team from a megapolis which hasn’t won a title for a long time is the New York Knicks who look likely to make it this year, after having taken a 3-1 lead in the finals with the most spectacular of comebacks in Game 4. But this isn’t a sports blog. What does spending on sports mean for fans from a personal finance perspective? Much like the football world cup which began earlier this week, tickets to the NBA finals at the iconic Madison Square Garden in NYC are atrociously priced with the cheapest tickets costing a cool USD 8,000.

There’s been plenty of debate on social media around whether it’s worth it or should you rather invest for the future. Tony Isola who writes about personal finance – spending, saving and investing, gives us a perspective.

For people especially GenZ who believe in living it up by funding their experiences through loans, this is obviously a bad idea. But for those who can afford, should you spend or invest?
“Who is anyone to judge if you spend money on things that provide great meaning to you? Only you can answer that question.”

He shares a sample financial plan of a well-funded client for context:

“…Let’s say a client who is a die-hard Knicks fan with a plan similar to the above asked me if they should spend 20k and take their grandchild to the game.

My answer is a resounding yes!

First, the Knicks haven’t won anything in 53 years. Who knows even if they are 2026 champs they won’t need another half-century before returning to glory.

Jet fans have been waiting 57 years, and Met’s partisans 40! NY sports fans should take nothing for granted. Championships are the astronomy equivalent to Haley’s Comet. Once in a lifetime events.

Second, money is all about memories, this experience could stay with a child for the next 70 years. Priceless experiences are rare and invaluable. Championship tickets could qualify as eulogy material. As one ages collecting moments rather than things should be of top priority.

Third, though this client, like many others, may have a large discretionary budget but won’t come close to funding it. 20k won’t ruin this plan and may provide a spark to do more with his money. Nobody lives forever.

There are some caveats here. This isn’t about clout chasing. Buying these tickets to be part of the in-crowd is gross. If you have the funds and live and die according to your team’s travails purchasing expensive tickets qualifies as something that defines meaningful.

Everyone’s different. The easy answer is this money should go into your grandchild’s 529 or custodial account and be worth multitudes more in the future.

Guess what, this client can do both or next year if he’s feeling guilt pangs. There’s plenty of time to fund an investment account, the same doesn’t apply to being part of a world championship.  No harm, no foul.

Life is lived in the now. Who knows how many years the mid 70’s Knick fanatic has left. He lived his whole life saving for tomorrow.

Tomorrow is today.

Go Knicks!”

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Note: The above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. The information provided is intended for educational purposes only. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India (SEBI) and is also an FME (Non-Retail) with the International Financial Services Centres Authority (IFSCA) as a provider of Portfolio Management Services. Additionally, Marcellus is also registered with US Securities and Exchange Commission (“US SEC”) as an Investment Advisor.