Most investors looking to profit from this year’s FIFA World Cup may already be thinking too late.

That’s the view of Jodian Aris, Assistant Vice President of Research and Strategy at Sagicor Investments, who says the biggest opportunities tied to major sporting events often emerge years before the first game is played.

Speaking on Taking Stock with Kalilah Enriquez Reynolds, Aris argued that while the World Cup generates billions of dollars in economic activity, investors should focus less on the tournament itself and more on the long-term trends and infrastructure investments created around it.

“The major mistake that persons may make is just waiting until the tail end, which is the actual event day, to start thinking about how it is that I could be investing,” Aris said.

Instead, she believes investors should be looking much earlier in the cycle.

“When the announcement is made for which city is going to be hosting the World Cup eight years from now, 12 years from now, that’s probably the point where you’d want to buy into something within construction in that space,” she said.

World Cup Boost Often Short-Lived

Aris acknowledged that major sporting events do provide a temporary boost to local economies through tourism, hospitality and entertainment spending.

“It’s significant, but not in the way that we’d ideally want,” she said. “What you tend to find with major sporting events is that there is a short-term boost to the local economy. However, it’s not sustained.”

Visitors attending major sporting events spend money on accommodations, food, transportation and recreation, creating a surge in economic activity.

“There is boosting that happens to your economy from the event. Persons are coming into your space, they’re coming for accommodations, there’s food, there’s other entertainment that people partake of, and it’s the introduction of tourism into your space,” Aris explained.

However, she cautioned that the long-term economic benefits are often overstated.

“What you find is that there tend to be cost overruns,” she said. “They tend to not necessarily use these facilities on a long-term or continuous basis.”

Look Beyond Hotels and Restaurants

While sectors such as hospitality, tourism, food and beverage, recreation and entertainment typically benefit during major sporting events, Aris warned investors against assuming those gains automatically translate into profits.

“Even though you may be getting increased revenues, you may find that the additional expenses associated with employment, providing additional space, additional seating, as well as other promotional activities, may just be sufficient to protect the brand but not necessarily reap a net profit,” she said.

Instead, she believes investors should focus on industries that continue benefiting long after the tournament ends.

“The smart money tends to follow where it is that these events may leave lasting impact,” Aris said.

One example is sports technology.

“If you look at how sports have progressed with the infusion of technology being applied, you find that for those companies that are providing this resource, now it is something sustained,” she said.

Caribbean Opportunities

For Caribbean investors, Aris sees opportunities closer to home as well.

“There definitely are opportunities,” she said, pointing to businesses tied to sports, recreation and betting activity.

She noted that companies such as Supreme Ventures could benefit from increased sports betting activity during major international tournaments, while businesses that successfully convert temporary visitors into long-term customers may also see lasting gains.

“You may not find that after five and a half weeks if you had a crowd of 20 that it just drops. You may find that you have a lingering amount of persons that may remain,” she said.

Focus on What Lasts

Ultimately, Aris said investors should avoid chasing headlines and instead focus on businesses that benefit from long-term structural changes.

“The smart money looks at what is long-lasting and what can be sustained, and it goes in that direction,” she said.

For investors hoping to profit from the World Cup, that may mean looking beyond the matches themselves and focusing on the industries, technologies and infrastructure that continue generating returns long after the final whistle.