Something new is coming to the world of sports: real futures trading.
On 11 August 2026, the world's largest futures and options trading house, CME Group (NASDAQ: CME) announced it would partner with the National Hockey League and a startup called FutureSports to launch the world's first index-based hockey futures contracts.
Unlike the kind of futures you might find at multiple sports wagering outfits that might involve things like betting on which team will win the Stanley Cup next year or which goalie will win the Vezina Trophy, the kind of futures contracts now being developed for the NHL have a lot more to do with giving sports-related businesses and investors new tools to hedge their risks in addition to simple speculation.
The Chicago Tribune gives an overview of what the CME Group/FutureSports/NHL partnership is looking to bring about:
Futures contracts, tied to the value of indexes, allow investors to buy or sell an asset at an agreed price by a specific date. It also allows traders to hedge risks.
For decades, futures contracts have primarily been associated with agriculture products, like corn and soybeans, or energy commodities, such as oil and natural gas, as well as stock indexes like the S&P 500. Futures even got the Hollywood treatment with the 1983 film “Trading Places,” when Dan Aykroyd and Eddie Murphy’s characters cashed in on orange juice futures, and over 20 years later, inspired a federal provision nicknamed the Eddie Murphy Rule.
FutureSports and CME’s new offering means if the Blackhawks play poorly, for example, a season ticket holder could take a short position on the team’s index to try and recoup some of their ticket investment losses. Corporate sponsors, which spend millions annually on sports deals, could buy hockey futures to limit their exposure if a key athlete gets injured or the team just fails to meet expectations.
The companies highlighted other potential market participants like garage and parking lot operators, retailers and even the sports franchises.
There are real businesses and people who have real money on the line that depend on how well a team performs. For example, consider one of the Chicago Blackhawks' star players, Connor Bedard. One of the top offensive players in the NHL when healthy, Bedard's career has been repeatedly knocked by injuries, forcing him to miss playing in significant parts of several seasons.
Every time he's been sidelined, the Blackhawks' ability to score goals and win games has been notably reduced. While not the only reason for the team's bottom-of-their-division status in recent seasons, his absence from the ice when injured has certainly been a contributing factor.
With futures trading however, the businesses whose revenues rise and fall with the team's fortunes would have a way to cushion the losses they might otherwise face. For example, if Connor Bedard isn't playing, it's tougher to sell hockey sweaters with his name and number on them. Or to sell Connor Bedard Funko-pop figurines at Chicago's sporting goods stores. Or to fill restaurants near the United Center on the Blackhawks' game nights. Hedging using futures contracts could make a lot of sense for the owners of these businesses to offset their otherwise unmitigated loss of revenue and potentially even stabilize it in the face of an adverse event like a key player not being able to play.
Futures trading falls into the kind of higher risk investing we consider to be suitable mainly for well-established and well-funded operators. It's definitely not for the faint-of-heart or for those who have low tolerances for risk. The Chicago Tribune's article understates that aspect of the venture:
Trading futures is complex and its investors are savvy. Even retail traders, who buy for themselves and often make smaller trades, use similar financial analysis tools as institutional investors.
“Anyone considering trading them should understand the mechanics, costs and risks first and seek professional guidance as appropriate,” said Joseph Cusick, senior vice president and portfolio specialist at Calamos Investments in Naperville. “Futures traders can experience rapid gains or losses because of margin requirements.”
That's putting it mildly, especially since real futures trading might involve using leverage (or borrowing) to fund an inherently speculative investment.
It will be interesting to see how the proposed NHL futures market plays out. If all goes as planned, NHL futures will go live 28 September 2026. Right in time for the NHL's 2026-27 season to get underway.
Image Credit: Microsoft Copilot Designer. Prompt: "An editorial cartoon of a Wall Street bull and bear playing hockey where the scoreboard shows 'CME Group / FutureSports / NHL Index' with value of 7500".
Labels: ideas, investing, risk, sports
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