Financial Opportunities in the Sports Industry

You know investors now definitely see sports as an asset class when J.P. Morgan, Goldman Sachs, and Morgan Stanley all decide to allocate time and resources to launching sports-focused teams / reports / indexes. 📈 ➡️ J.P. Morgan   6 months ago, J.P. Morgan launched a new "sports investment banking coverage group" to cover investments in sports franchises for their clients around the globe.   Fred Turpin, J.P. Morgan’s Global Head of Media and Communications Investment Banking declared then: “With top sports franchises in the US and Europe now valued at more than $400 billion in total, sports have become an increasingly large asset class, attracting more and more institutional investors.”   ➡️ Goldman Sachs   Last month, GS released a report called "Changing the Game: Unlocking new opportunities in sports" in which they picture sports as an "outperforming asset class generating opportunities for corporates and investors to diversify their assets and unlock value."   Here's a quote from Dave Dase, Global Co-Head of Sports Franchise:   "The days of just selling tickets and concessions are over; sports are rapidly expanding into 24/7 data management platforms that bring best-in-class customization - helping teams grow and increase the monetization of their fan base across all business verticals.”   Trends quoted in the report include:   📱 Evolving media landscape shaping a new era for sports rights   🤝 Minority stakeholders becoming an essential part of the capital structure in parallel with soaring sports teams’ valuations 🎮 Expanding range of sports-adjacent businesses 🥅 Modern-day stadiums generating new avenues for monetization   ➡️ Morgan Stanley And now, Morgan Stanley’s wealth management division is launching an investment index tied to sports leagues.   Name of the index?   The "Parametric Custom Core Sports League" strategy.   The portfolio's holdings will consist of 250 to 400 securities from companies that have sponsorship, media, advertising deals, and other associations with major sports leagues, including the NBA, WNBA, NFL, NWSL, MLS, MLB, LPGA, PGA, NHL, US Open Tennis, F1, Nascar, and college basketball.   The portfolio is aimed at high net worth sports fans with a $250k investment minimum.   It will allow them to invest in a curated index of companies with strong sponsorship, media and advertisement ties to the most prominent sports leagues.   Sandra Richards, Managing Director and Head of Morgan Stanley’s Global Sports and Entertainment Division, stated:   “We see the demand from our clients that are asking about ways to invest in sports. And it’s going to continue.”   To be noted that they'll use Nielsen Sports as its data source to track the activity, spending and visibility of the companies with exposure to professional sports leagues.

The Next Big Opportunity is Indian Sports 🚀 At V3 Ventures, we’re passionate about partnering with founders building consumer brands of tomorrow driving multi-decadal impact. As investors, we believe there is a landgrab opportunity to build category-defining consumer brands in the sports industry in India! From global cricket dominance to Olympic success in hockey, badminton, wrestling, and boxing, India is already a sporting powerhouse. But beyond traditional sports, a new era is unfolding with the impending pickleball and padel revolution in India. With an increased investment in infrastructure, grassroots coaching programs, and the commercialization of regional leagues leading to 800M+ sports viewership and 100-150M active weekly participation, India’s sports ecosystem is ripe for disruption. Here’s where we see the biggest opportunities: 🏸 Sporting Goods & Equipment India’s $3.9B sporting goods industry is due for a shake-up. For too long, legacy brands have failed to cater to casual and recreational players with their prices, leaving gaps in affordability, innovation, and accessibility due their focus on player sponsorships and exports as none of them have scaled beyond ₹300 Cr. Meanwhile, brands like Decathlon have demonstrated the potential for success, building a ₹4,000 Cr business in just over a decade. The next frontier? A mass-premium, multi-sport sporting goods brand that bridges the gap between functionality and affordability. Think cricket bats, pickleball gear, badminton equipment, and sports shoes—designed for India’s growing tribe of amateur athletes. The market is waiting for a bold, aspirational challenger brand to capture this underserved audience. 🏟️ Managed Multi-Sport Facilities India’s 20,000+ unorganized sports centers face significant operational challenges—fragmented ownership, high capex, low maintenance, and lack of value-added services. Yet, the rise of pickleball and padel courts (1,000+ already built!) is reshaping this landscape. Platforms for venue bookings and interest in multi-sport facilities present a landgrab opportunity to build a pan-India, capex-light network of organized, branded facilities. Here’s the math: A two-court pickleball facility can be built for ₹6L or lower if a tennis court is repurposed. With a 45% occupancy rate (20-30% on weekdays and 80% on weekends) and charges of ₹600/hour, such a facility can generate ₹2L in monthly revenues, operating at a 50% profit margin and achieving payback in under 12 months, assuming ₹1L of monthly operating spends (rent, salaries and upkeep). Add-ons like coaching, equipment rental, and cafés can further boost occupancy and ARPUs. We’ve already seen examples of multi-sport facilities generating ₹15L+/month already. 🏅 If you’re building the future of Indian sports, let’s talk! Drop your favorite challenger sports businesses in the comments or write to me at abhalerao@verlinvest.asia. #SportsInIndia #ConsumerBrands #Startup

Closing the Monetization Gap in Women’s Sports: A $2.5 Billion Opportunity Summary • Explosive Growth: Between 2022–2024, women’s sports revenue in the U.S. grew 4.5x faster than men’s sports. Despite this, women’s sports accounted for <2% of the $75B U.S. sports market in 2024. • Monetization Potential: By 2030, women’s sports could generate $2.5B in annual value, up from $1B in 2024 (a 250% increase). • Revenue Mix: Sponsorship will remain the largest driver, followed by ticket sales, media rights (~20%), and merchandise. Broadcast/media rights are the biggest area of untapped growth. • Stakeholders Driving Growth: • Investors (private equity, individuals like Alexis Ohanian, Michele Kang). • Marketers/sponsors (brands like Ally Financial, Gatorade, Skims). • Media companies (ESPN, ION, Paramount+). • Rights holders (WNBA, NWSL, LOVB, Unrivaled). • Fandom Expansion: • 4 in 5 U.S. sports fans follow women’s sports. • 60% became fans in just the last five years, driven by Olympics, World Cup, and NCAA women’s basketball. • Women’s sports fans are highly loyal to individual athletes, boosting sponsorship impact. • Record Viewership & Attendance: • NCAA women’s basketball finals in 2024 outdrew the men’s game (18.9M vs. 14.8M viewers). • WNBA Finals doubled viewership year-over-year. • NWSL’s new media deals (CBS, ESPN, Prime) saw rights values increase 40x. • Attendance surged 55% between 2021–2024, with teams moving to larger arenas. • New Leagues & Expansion: NWSL, WNBA, and new leagues like the PWHL, LOVB, AUSL, and Unrivaled are fueling expansion. Key Challenges 1. Fragmented Fan Attention : Fans often follow both men’s and women’s sports, stretching engagement. 2. Fewer Avid Fans : Only 39% of women’s sports fans are avid (vs. 69% in men’s sports). Casual fans are less engaged and more likely to watch less in the future. 3. Access Gaps : Many women’s games lack prime-time slots or are locked behind niche streaming services. 4. Market Maturity : Shorter history, less proven ROI, and smaller scale still make investors and sponsors cautious. Takeaways • Now is the inflection point: women’s sports have proven audience demand, sponsorship traction, and rising viewership. • Stakeholders must act boldly: • Investors should back leagues/teams early for outsized growth. • Marketers should lean into storytelling around athletes, authenticity, and inclusion to deepen fan connections. • Media companies should expand coverage, prime-time slots, and digital storytelling. • Rights holders should enhance fan access, build digital engagement, and convert casual fans into avid ones. • The flywheel effect: More investment → better visibility → stronger fandom → higher monetization → even more investment. • Upside is likely underestimated: If challenges are addressed, $2.5B by 2030 may be a floor, not a ceiling.

🚨 Private Equity Is Taking Over Sports. From European football clubs to the NFL - and now college athletics - private equity is reshaping how sports are owned, funded, and operated, creating an entirely new wave of jobs and investment opportunities along the way. This isn’t isolated - this is a system shift. In just five years: – Over $50B in private equity capital has flowed into global sports – The NFL approved PE ownership for the first time (2024) – CVC, RedBird, Arctos, Ares, and Silver Lake became major sports investors – Entire sports investment divisions have been built within top firms Here’s how private equity is changing the game - and where new opportunities are emerging 👇 👔 The Rise of Private Equity in Sports Sports have become a core portfolio category for institutional investors. Teams, media rights, and stadiums are now managed like assets - driving demand for finance, strategy, and operations professionals who understand both business and the game. – Multi-billion-dollar franchise valuations – Stadium and real-estate development deals – Media and data-driven revenue strategies – University partnerships for NIL and facility funding 🎓 The Collegiate Shift U.S. college athletics generated $19B in 2019, but over one-third came from non-commercial support. That imbalance is why universities are exploring private equity partnerships to modernize and monetize athletic operations. The proposed Big Ten $2B private equity deal shows what’s next: – Immediate financial relief amid facility debt, NIL costs, and player compensation pressures – A new commercial arm (“Big Ten Enterprises”) to manage media rights and sponsorships – But hesitation remains - governance concerns, loss of control, and unequal payouts 💼 Role Expansion Trends: Finance Meets Sports As private equity becomes central to sports, entirely new hybrid job opportunities are emerging: – Sports Investment Analysts blending valuation + sports ops insight – Portfolio Strategy Managers guiding growth across PE-backed franchises – Real Estate & Infrastructure Specialists leading stadium + district projects – Data & Media Analysts optimizing broadcast + sponsorship value – University Investment Liaisons shaping NIL + facility strategies ⚠️ Why This Matters for Your Career Private equity is transforming sports from passion to portfolio - and with it, creating new pathways for analysts, strategists, and innovators to shape the industry’s next era. 💬 Where do you think the next major shift in private equity’s role in sports will happen?  ⬇️💭

🚀 The $718B Sports Investment Boom — And Why It’s Only the First Quarter Just back from an incredible session with Leaders in Sport x Sports Business Journal, where bright minds from The Raine Group, McKinsey & Company, and leaders across sports, media, and finance unpacked one of the fastest-moving frontiers: global sports investments. 💡 The big takeaway? Sports isn’t just entertainment anymore — it’s an asset class where culture, content & capital collide. Here’s where the smart money is flowing: 1️⃣ A $718B Industry — And Still Accelerating The global sports market is growing 7% annually, with even faster gains in: • Betting & iCasino (11% CAGR) - think DraftKings Inc., Sportradar, BetMGM • Youth sports (7% CAGR) - with players like Hudl, PlayOn Sports, TeamSnap What's next? Media rights, digital experiences, and next-gen fan engagement will drive the future. 2️⃣ Multi-Club Ownership is Changing the Game From BlueCo, parent company of Chelsea Football Club, to the Washington Commanders, investors are shifting from single-team plays to multi-club portfolios — crossing leagues and borders. Bigger deals. Bigger synergies. Bigger upside. 3️⃣ Women’s Sports — From Hype to Headline Investment Investment in women’s sports has skyrocketed — up 163% annually, with leagues like the National Women's Soccer League (NWSL), WNBA (Women's National Basketball Association), and women’s volleyball leading the way. Why? Rising fan engagement, cultural momentum, and massive untapped revenue — making women’s sports a magnet for institutional capital. 4️⃣ Private Equity — Calling the Plays Since 2022, 48% of all sports deals involved PE, with North America driving 60% of global activity. With leagues — even the National Football League (NFL) — opening to minority PE stakes, expect more creative deals and new capital partners. 5️⃣ Beyond Teams — Investing in the Whole Ecosystem Teams, leagues, and betting operators still attract 68% of investments, but smart capital is also flowing into: • Sports tech • Agencies • Youth development platforms Owning a team isn’t enough. Owning the value chain? That’s the play. 6️⃣ Pro Clubs Still Dominate — But the Pie is Expanding ~40% of all sports investment dollars still flow into pro teams, but there’s growing capital flowing into: • Media rights & streaming • Global grassroots development The future isn’t just on the field — it’s in platforms bringing sports to the world. 7️⃣ The Best Investors Understand Capital AND Culture Sports have always shaped culture — but today, they’re also: • A global content engine • A high-growth asset class The leaders of tomorrow — from LeBron's ownership group to Sixth Street’s diversified platform — aren’t just buying teams. They’re building ecosystems at the intersection of competition, content, and community. Bottom Line There’s never been a more exciting time to sit at the crossroads of capital and culture — and sports is where it's all happening.

Why Brazilian soccer clubs are the best undervalued assets in global football investing... For decades, Brazilian soccer clubs have been some of the most mismanaged assets in global sports. Before 2021, these clubs operated as non-profit associations, meaning there was little incentive for financial discipline, commercial growth, or long-term planning. The result was massive debt, outdated business practices, and untapped commercial potential. That changed when Brazil passed the SAF (Sociedade Anônima do Futebol / Soccer Limited Company) law, allowing private entities to own and operate clubs like true businesses. Since then, we’ve seen a fundamental shift in how these assets are run. It’s creating one of the best buying opportunities in sports. Here’s why: Distressed Assets Turnaround Potential → Debt Restructuring & Institutional Capital Injection Many clubs are burdened with debt but can be turned around through structured debt renegotiation, professional management, and private capital injections. Under Commercialized Revenue Streams → Revenue Expansion & Modernization Opportunity Sponsorships, ticketing, merchandising, and media rights are significantly under-monetized compared to Europe. The right ownership structure can modernize these streams and unlock exponential growth League Growth Upside → Upcoming League Privatization Will Drive Valuations Brazil is on track to consolidate its domestic league into a more centralized, Premier League-style entity. As more clubs turn private, media deals and revenue-sharing agreements will drive a sharp rise in valuations Player Development Machine → The Best Talent Arbitrage Play in Global Soccer No country produces more elite soccer talent at scale than Brazil. Clubs sit on incredible player pipelines, yet many struggle to capture the full financial upside. MCO groups and private investors can turn these academies into talent development hubs, increasing player transfer sales and ROI. Private equity and MCOs aren't sitting on the sidelines: → Sportsbank has entered a period of exclusivity to invest in Eagle Football Holdings, which is the majority owner of Botafogo (Brazil and South America's reigning champions). Ares Management, a $300B+ investment giant, has already lent $300M to Eagle and holds equity in the company. Ares’ partners, Mark Affolter and Jim Miller, sit on Eagle’s board. → Treecorp, a Brazilian private equity firm, recently acquired Coritiba. One of the first PE-led club purchases in Brazil with plans to develop a mixed-used stadium real estate asset. → Bahia was acquired by City Football Group, which counts Silver Lake as a key backer, reinforcing the MCO strategy in Brazil. The window of opportunity won’t stay open for long: Right now, Brazilian soccer is where the English Premier League was in the late 90s, underdeveloped but on the verge of a massive financial boom.

Energising discussions at SuperReturn in Monaco this month, where I had the privilege of sharing insights on sports investing, alongside exploring transformative trends in private credit markets. 🌟 Here's a deeper dive into the key insights that emerged: 𝗦𝗽𝗼𝗿𝘁𝘀 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲 🏆 𝗟𝗲𝗮𝗴𝘂𝗲 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 1. The NFL's franchise model demonstrates how salary caps and revenue sharing create predictable investment returns 2. European football's promotion/relegation system, whilst riskier, offers unique value creation opportunities through performance improvement and media rights optimisation 3. Major leagues are increasingly focused on global expansion, with the NBA and F1 leading successful international market penetration 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀 1. Pickleball's remarkable growth trajectory showcases how rapidly new sports can scale with proper infrastructure and investment 2. Women's sports experiencing unprecedented growth, with the NWSL attracting significant capital 3. Esports and digital engagement platforms still continuing their push to create new monetisation channels, particularly in younger demographic segments 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 1. Private equity firms moving beyond pure ownership to value-add operational improvements 2. Growing focus on data analytics for both performance optimisation and fan engagement monetisation 3. Multi-club ownership models gaining traction, enabling operational synergies and talent development pipelines 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗖𝗿𝗲𝗱𝗶𝘁 𝗠𝗮𝗿𝗸𝗲𝘁 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 📈 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗮𝘁𝘂𝗿𝗮𝘁𝗶𝗼𝗻 1. Private credit continues its substantial expansion globally, with direct lending becoming a core allocation for institutional investors 2. Lenders showing increased sophistication in deal structures, with covenant-lite terms being balanced against stronger security packages 3. Growing emphasis on sector specialisation, particularly in technology, healthcare, and sustainable infrastructure 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝘀 1. Hybrid instruments combining traditional debt with equity-like features gaining popularity 2. ESG-linked credit facilities providing pricing incentives for sustainability performance 3. Australian private debt market emerging as a compelling opportunity, driven by banking sector consolidation 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 1. Enhanced focus on portfolio diversification across sectors and geographies 2. Development of secondary market trading platforms improving liquidity options 3. Innovative fund structures, including evergreen models, providing more flexible capital deployment options Continued in first comment #𝗦𝗽𝗼𝗿𝘁𝘀𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 #𝗣𝗿𝗶𝘃𝗮𝘁𝗲𝗖𝗿𝗲𝗱𝗶𝘁 #𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 #𝗙𝗶𝗻𝗮𝗻𝗰𝗲 #𝗦𝘂𝗽𝗲𝗿𝗥𝗲𝘁𝘂𝗿𝗻𝟮𝟬𝟮𝟰 #𝗠𝗼𝗻𝗮𝗰𝗼𝗖𝗼𝗻𝗳𝗲𝗿𝗲𝗻𝗰𝗲

Goldman Sachs Just Valued Excel Sports at $1B Sports agencies aren't service businesses anymore. They're infrastructure assets that Wall Street wants to own. Here's what week 43 revealed about where the money is flowing: 1. The Billion-Dollar Agency Play Goldman Sachs is acquiring Excel Sports Management for roughly $1 billion. That's not about athlete commissions—it's about controlling the entire value chain from talent representation to content production to brand consulting. When financial institutions pay billion-dollar valuations, it means the business model fundamentally changed. 2. Athletes Take Full Ownership NBA players Darius Garland, Aaron Nesmith, and Payton Pritchard are launching Off Court—and they own 100% of it. Not equity stakes. Not advisory roles. Complete ownership. That's athletes recognising they don't need venture capital to build platforms when they are the platform. 3. The G League Wearable Mandate The NBA G League may require all players to use approved wearable devices in games and practices. This isn't about fitness tracking—it's about creating comprehensive development datasets that make call-up decisions objective instead of subjective. Every physical metric standardised across every affiliate team. 4. AI Agents Run Content Now Presidio launched Resonate, an agentic AI platform that autonomously manages sports content without human oversight. Not AI assistance—AI agents that organise, tag, and distribute thousands of assets across systems. That's entire content workflows running on autopilot. 5. NEP Gets $700M Investment 26North Partners invested $700 million in NEP Group, the infrastructure behind live sports broadcasts. While everyone focuses on streaming rights, the real value is in the production technology that makes broadcasts possible. Infrastructure always wins. This is consolidation at institutional scale. Wall Street sees sports representation, production infrastructure, and athlete platforms as billion-dollar asset classes. The real question: When athletes own their platforms and AI runs content operations, what role do traditional intermediaries play? I analysed these 5 shifts plus 25 other major developments including Barclays Center's $100M tech upgrade and CVC's multibillion-dollar refinancing in this week's Sports Tech Weekly newsletter—link in comments.

📈 The narrative around women's sports investment has shifted from potential to undeniable return. Women's sports revenue is projected to hit at least $2.35 billion globally this year, with over $1.26 billion coming directly from sponsorships (Source: Deloitte). To capitalize on this growth, brands should consider these 5 themes: 1. The WNBA & NIL Superstar Effect The arrival of superstars like Caitlin Clark (State Farm, Gatorade) and Angel Reese (Beats by Dre, McDonald's) have created instant team value - for example, the Indiana Fever saw 43% increase in sponsorship volume (Source: SponsorUnited). The 2026 upside 👉 explosive rise in player comp & endorsements as the WNBA's new media rights deal & CBA negotiations are expected to raise the salary floor. This will undoubtedly influence the broader women's sports ecosystem. Yesterday's price is not today's price. 2. Non-Traditional & High-Growth Categories New, non-endemic brands are engaging highly loyal fans. Examples like SEPHORA, Bobbie, and Opill are breaking category norms, capitalizing on the 1,500 brands sponsoring women's sports that aren't in men's. The 2026 upside 👉 consolidation of Health, Beauty, and Wellness sponsors moving beyond initial buzz to multi-year deals. While many brands consider direct competitors, non-endemics are impacting share of mind with innovative approaches to the space. 3. Record-Setting Jersey Sponsorships High-value, purpose-driven jersey deals are setting financial benchmarks, such as Ring (Portland Thorns FC) and Dove (Gotham FC). With 75% of NWSL fans more likely to try a sponsor's product (Source: MarketCast). The 2026 upside 👉 increased avg. team deal size and full value realization, closing the revenue gap between large & small market teams. 4. Banking & Financial Services as Cornerstones  Firms are leading the charge on equity & long-term stability. Ex: Ally drove change with its 50/50 Pledge for media spend parity, Chase's partnerships with A'ja Wilson and Alex Morgan highlight female athletes making business moves off the court, and Capital One's support of iHeart Women's Sports is scaling women's sports storytelling at unprecedented levels. The 2026 upside 👉 shift to product integration and equity-driven campaigns (co-branded products, athlete-specific investment tools) that link fin services to athletes & fans. . 5. Global Apparel & Athlete-Specific Lines  Apparel deals are evolving into cultural product launches, moving beyond uniforms. Nike's deal with Liga MX Femenil & $10MM shoe deal with stars like Cat Macario signals this shift. The 2026 upside 👉 proliferation of signature athlete gear and lifestyle collections across global women's sports, creating sustained, multi-season retail product cycles. The early-adopter window is closing. Brands need to move to capture authentic fan loyalty. Which of these 5 trends will have the biggest ROI for sponsors in 2026? Share your predictions below!

The business of sports stands at a pivotal moment. For decades, teams have relied on sponsorship, media rights, and game day revenue. That model, while successful, leaves enormous value untouched. Across industries, brands like Delta Air Lines Skymiles and Starbucks have built billion dollar loyalty ecosystems. Yet in sports, where fan affinity & loyalty is unrivaled, many teams remain stuck in old business. The opportunity is massive... The new generation of sports business will be a 360 revenue engine. Fan wallets, seamless loyalty, onchain payments, first-party fan data, each touchpoint being monetized. Teams have long feared the complexity: the staffing, infrastructure, and operational headache. But that barrier is now gone. Solutions like Uptop offer out of the box platforms, ready to launch. The question isn’t whether sports can replicate the success of some of those other models, it’s rather, once adopted, how fast it will outpace them. The teams that adopt these new models will unlock new revenue streams, stronger fan relationships, and future proof their business.