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Sports investments are everywhere
Matt Ober
June 14, 2024
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Investing in sports is hot. Everyone wants a piece of the action. Can the trend continue? Can you make money?
According to a recent Goldman event, investing in sports is top of mind for family offices. Women’s sports, UFC, Soccer, etc. Is there money to be made? Everyone points to how much money Mark Cuban made recently by selling the majority of his stake in the Dallas Mavericks. I have recently seen the women's soccer team in San Diego trade hands. Originally bought for $2m and sold for $120m!
I get the expansion of women’s soccer and soccer in the US in general. I am biased, but growing up playing soccer, it has always been a matter of time in my mind that soccer would grow in the US. It’s too big of a sport and business globally to not have more success and opportunity in the US.
The expansion of new leagues, new sports, and with that new investment opportunities are popping up everywhere. We saw Slamball make a comeback with our good friend Roger Ehrenberg investing. We at Social Leverage invested in the Grass League from Grass Clippings which is a high-stakes par 3 golf tournament and league. We also announced recently our investment in CommonWealth which is making it easy for everyone to invest in sports. Starting with horseracing and expanding to golf, tennis, and beyond.
What is it about sports investing that is interesting? The revenue potential is there. From media rights to merchandise to sponsorships, and more. The excitement is obvious. Who wouldn’t want to attend live events, and follow athletes and teams they have a financial incentive in? Can money be made? I think with the scarcity of availability, the excitement of winning and live events, and the expansion of advertising/media interest, the answer is a clear Yes. How much, how long, and what sports will be successful is something to think further about. With the potential for the NFL to allow PE investors to invest in the near future could that make football valuations skyrocket. If the NFL goes up in value, does The Rock’s UFL inch up as well?
As a sports fan and active investor, I couldn’t be more excited. I bought my first two racehorses on CommonWealth and I have seen a handful of decks for investing in soccer teams, new versions of the UFC, pickleball leagues and teams, and so many other unique sports opportunities. The rise of sports investing is a big trend and with that will be a lot more investing in and around the technology, data, and innovation that help these teams and leagues be successful. Whether that is companies like Gemini Sports Analytics which we are investors in or AltSportsData which is a great company based here in Carlsbad. Sports investing as a category is here for the long haul and I am excited to see the ecosystem and opportunities expand.
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