On July 29, CME Group announced a long-term partnership with Futuresports. The Chicago-based administrator will transform official sports statistics into financial benchmarks for contracts.
The companies aim to address a problem faced by broadcasters, sponsors, insurers, stadium operators, and sportswear manufacturers. Revenues can depend on team results, athlete readiness, attendance, and viewer interest, yet standardized hedging tools are virtually non-existent.
Futuresports co-founder Lee Teylfort stated:
"The global sports industry generates $650 billion annually, yet until now there have been no liquid and reliable opportunities to hedge the extensive and diverse risks of the industry, which range from weather events to injuries, unforeseen behavioral issues, and much more."
"That is about to change. We are genuinely excited about the interest our business has generated in sports and related industries, as well as the quality of investors we have already managed to attract," noted Teylfort.
Performance Data Becomes a Tradable Benchmark
The contracts will track broad indices built on officially published, league-sanctioned statistical data, not the results of individual matches. Monthly and quarterly contracts will be settled in cash, allowing participants to exchange the final index value without the physical delivery of the underlying asset.
Companies exposed to risks of declining attendance, demand for merchandise, sponsorship value, or television audience will be able to partially offset these risks using regulated derivatives. Futuresports also expects these indices to be used to support exchange-traded funds and over-the-counter swaps.
Terry Duffy, Chairman and CEO of CME Group, stated:
"The contracts we are developing with Futuresports are based on carefully constructed indices and are backed by the transparency and integrity that only exchange-traded products can provide."
"This isn't just a new product — it's about introducing real pricing and risk management discipline into an industry that is ready for it," added the CME executive.
Sports Companies Gain a Hedging Tool
The market can serve companies whose financial performance depends on sports outcomes. A broadcaster may lose viewers if a popular team performs poorly, and sponsors, stadium operators, or sportswear manufacturers may lose revenue due to an injury or scandal.
Standardized indices will provide a common benchmark for transferring risk. Asset managers, pension funds, lenders, and trading firms will also be able to hedge broader sports-related exposures without relying on one specific event.
This sports initiative follows CME Group's broader expansion into index derivatives, including Nasdaq-CME crypto index futures, as well as round-the-clock trading of cryptocurrency futures and options. The latter brought in approximately $50 million in notional volume across over 7,200 contracts during the first weekend.
Regulatory Scrutiny to Determine Launch Terms
Futuresports will manage the indices using official league data. Participating leagues will provide statistics but will not control the calculations.
CME Group did not disclose which sports, leagues, or performance metrics will be featured first. The index composition will be determined by agreements with leagues, final technical specifications, and regulatory approval.
Under Commodity Futures Trading Commission (CFTC) contract listing procedures, designated contract markets can introduce products via self-certification or by seeking approval. CME Group plans to disclose details before trading begins.
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