Sixth Street’s Post

The modern era of professional sports arena and stadium sponsorships can be traced back to the 1990s, when a host of new buildings were constructed to house both existing teams and franchises that suddenly found themselves in new cities (whether through expansion or relocation). As more venues were built, the industry’s power brokers realized longstanding tradition of naming them after locations or important historical figures could be used to generate extra cash. “Sponsorships had been a staple of the philanthropic world — hospitals, university buildings, etc.,” Mark Rosentraub, a professor of sport management at the University of Michigan, told me. “But the sustaining interest in sport and owners seeking new sources of revenue, as player salaries rose, created a new synergy.” We can see this by looking at naming trends in the so-called Big Four North American men’s pro leagues: the NFL, NBA, NHL, and MLB. From the 1970s through the 1980s, the share of home venues that were named either generically (i.e., Atlanta-Fulton County Stadium) or in tribute to an individual (Comiskey Park, etc.) was 97.3%. In almost every other case, the sponsor hailed from the food-and-beverage industry — such as Rich Stadium in Buffalo or Busch Stadium in St. Louis. #brands #brand #stadiums #stadiumnames #namingtrends #sports #sportsmanagement https://lnkd.in/ehd67RG4

Angel City FC gets a record-breaking valuation It’s always great to see a sports team owned by its fans, but this isn’t like the Green Bay Packers. Hollywood power couple and OG Angel City FC fans, TV journalist Willow Bay and her husband, Disney CEO Bob Iger, finalized a deal to buy the LA-based women’s soccer team. The sale values the club at $250 million, making it the most valuable women’s sports team in the world. Some details of the agreement: Bay and Iger will invest $50 million and take controlling ownership from Reddit co-founder Alexis Ohanian. Bay will lead the board and represent ACFC on the National Women’s Soccer League’s Board of Governors. All existing owners—a group that reads like the invite list to Oprah’s birthday party—will continue to be involved, including Natalie Portman (a co-founder), Billie Jean King, and former USWNT players such as Abby Wambach and Mia Hamm. Show me the money: Bay predicts that ACFC can ride growing interest and investment in women’s sports to a $1 billion valuation in the “modestly near term.” The team generated $33 million in revenue last year, the most of any women’s sports team in the world (according to the team), and was No. 1 in NWSL attendance and sponsorship revenue. But it’s not without its devils…the team ranks 11th out of 14 teams this season and has been dogged by reports of infighting.—CC https://lnkd.in/eWbiTPiN

New Post: Could 50 Cent Bring Ice Cube’s Big 3 League to Shreveport? - https://lnkd.in/gMkY2zB8, Louisiana could become a hub for basketball as 50 Cent aims to bring Ice Cube's Big3 league to the city. The Expo Hall is being transformed into the Shreveport Indoor Sports Complex, set to host high-profile basketball events. This initiative could revitalize the downtown area and strengthen the community spirit around sports. SHREVEPORT, Louisiana - The city of Shreveport could be poised to become a new focal point for basketball enthusiasts. The transformation of the city’s Expo Hall, a former film industry venue, into a sports complex, aligns with rapper and entrepreneur 50 Cent's aspirations to bring Ice Cube's Big3 basketball league to Shreveport. This development raises the prospect of the city hosting high-profile basketball events, potentially reshaping its sports landscape. Originally known as Expo Hall, and later rebranded as Stageworks for the film industry, this venue has witnessed various phases of utility. Under Mayor Adrian Perkins' administration, a significant investment of $4.7 million was made to convert this facility into the Shreveport Indoor Sports Complex. With 48,000 square feet of space, the complex is designed to accommodate multiple sports, including basketball, volleyball, and even pickleball. Photographer: Briant Garcia Professional Boxing Event at StageWorks

Great Forbes article delving into the wealthiest sports team owners in the U.S. for 2024. It highlights the undeniable rise of the sports industry as one of the fastest-growing sectors in entertainment and media, further reinforcing what I’ve long believed about its powerful impact and influence.

New Post: Could 50 Cent Bring Ice Cube’s Big 3 League to Shreveport? - https://lnkd.in/gMkY2zB8, Louisiana could become a hub for basketball as 50 Cent aims to bring Ice Cube's Big3 league to the city. The Expo Hall is being transformed into the Shreveport Indoor Sports Complex, set to host high-profile basketball events. This initiative could revitalize the downtown area and strengthen the community spirit around sports. SHREVEPORT, Louisiana - Shreveport, a could be poised to become a new focal point for basketball enthusiasts. The transformation of the city’s Expo Hall, a former film industry venue, into a sports complex, aligns with rapper and entrepreneur 50 Cent's aspirations to bring Ice Cube's Big3 basketball league to Shreveport. This development raises the prospect of the city hosting high-profile basketball events, potentially reshaping its sports landscape. Originally known as Expo Hall, and later rebranded as Stageworks for the film industry, this venue has witnessed various phases of utility. Under Mayor Adrian Perkins' administration, a significant investment of $4.7 million was made to convert this facility into the Shreveport Indoor Sports Complex. With 48,000 square feet of space, the complex is designed to accommodate multiple sports, including basketball, volleyball, and even pickleball. Photographer: Briant Garcia Professional Boxing Event at StageWorks

Great Forbes article delving into the wealthiest sports team owners in the U.S. for 2024. It highlights the undeniable rise of the sports industry as one of the fastest-growing sectors in entertainment and media, further reinforcing what I’ve long believed about its powerful impact and influence.

Portland Thorns FC has been acquired by Bhathal family-owned RAJ Sports for reported $63 million. According to a November 2023 release by Deloitte, women’s sports is expected to generate worldwide revenues of $1.28 billion this year. If this prediction comes true, it will mark the first time that annual global profits for women’s sports will have surpassed $1 billion and a total of at least 300% higher than Deloitte’s previous valuation entering 2021. When Boardroom caught up with Thorns FC forward Sophia Smith in November 2023, the 2022 NWSL champion said she hopes the new owners continue to show a vested interest and investment in the club and women’s sports as a whole. “What we want in new ownership is someone who’s going to come in and raise the standard even higher so that Portland remains at the top in every category possible. Whether that’s investing in a facility for us, getting a grass training field, all of those things are super important for us,” “Our vision is to support new, widespread growth for the Thorns, the people of Portland, and for women’s sports as a whole,” said Bhathal Merage. “Specifically, we bring deep experience in professional sports and large-scale real estate developments that create thriving community centers, making us well-positioned to deliver valuable assets that will support further growth for the players, staff, and fans.” -------------- Good to see the quote from Thorns FC Forward Sophia Smith about what she and her teammates what to see in an ownership group. Customer discovery 101. Learn what your customer needs are and how they want it resolved. Ownership = Stewardship. The time you're blessed to steward an entity that serves others, how will you answer the call to serve them? #sportsbusiness #Teamacquisition #womenssoccer

We all know there's a lot of money to be made in sports. From investing in teams to venues to merch to anything involving Taylor Swift's boyfriend and his brother, the opportunities seem almost endless. For anyone thinking of investing big or small in the business of sports, check out this upcoming session from my friends at the Museum of American Finance. It's sure to be a lively, thought-provoking and interesting discussion. https://lnkd.in/gBnuF88y #sportsmarketing #sports #investing #sportsfans #justdoit #gopats #godawgs

August 2024 Sports M&A Activity In the midst of a Summer Olympics, deal flow was unsurprisingly quieter in August with Deloitte’s M&A team research identifying around 10 transactions involving rightsholders. Here are a few observations from August’s market activity:   PE touchdown confirmed August saw NFL team owners vote for approved PE funds to acquire minority stakes (as silent partners) of up to 10% (minimum 3%) in up to six franchises each. With the following key notes: 📒 Three approved funds and one five-fund consortium. ⏲ Stakes purchased cannot be sold for at least six years. 💰 Sportico analysis suggest this could result in investment north of $3 billion by funds. ⚖ Restrictions on proportion of a funds assets (20%) that can be invested in one franchise and the amount one individual (7.5%) or NFL team owner (3%) can account of a fund's assets. The decision provides NFL owners access to a significant new pool of capital, having taken their time before allowing PE investment present in other big US sport leagues since 2019/20.   British basketball spotlight 🏀 August saw significant M&A activity within the British basketball ecosystem following the British Basketball Federation licensing men’s professional basketball to Super League Basketball. 🦁 London Lions was acquired by Lithuanian tech hub Tesonet, who also own EuroLeague’s Žalgiris, forming a multi-club ownership group within European basketball. 💸 Former British basketball player Dan Clark was awarded Surrey’s basketball franchise following the folding of the previous team, whilst the Sherwood Family Investment Office acquired the Manchester Giants.   Singing & hooping 🤳 Ed Sheeran & Kevin Durant stole headlines this month following high-profile minority investments in Ipswich Town and PSG. 🎙 Ed Sheeran’s investment highlights how sports properties may look to leverage high-profile individuals with strong local infinity as ambassador’s that can unlock commercial growth. 🏀 KD’s investment highlights an approach to leveraging a superstar in a sport or subject with rising domestic popularity (i.e. basketball in France), who can contribute to unlocking new markets and demographics.   RedBull’s energetic year 🏯 RedBull continued its acquisitive 2024, closing its third investment of 2024 by investing in its sixth football club, third tier Japanese side Omiya Ardija. 🥤 RedBull currently holds investments in five other football clubs (RB Bragantino, RB Salzburg, RB Leipzig, New York RB and Leeds United), two Formula 1 teams (RB Racing and RB Formula 1) and one cycling team (Bora-Hansgrohe). 🌟 The company’s focus on leveraging sport for brand development and market expansion highlights the unique attraction of sports investments and how it can be utilised to amplify existing portfolio assets for strategic corporates. Please reach out if you are in or exploring the sports M&A market, I would love to chat!   #deloitte #sports #manda  #DeloitteinSports

From The Economist: New leagues are not just storming the field in America. They are a global phenomenon, with the exception of China, where professional sport has struggled in recent years, with a major corruption scandal rocking football. The Kings League, for football, was founded in Spain in 2022, has expanded to Latin America and will soon launch in Italy. That same year investors launched a baseball team in the United Arab Emirates, which aims for sport to account for 0.5% of its GDP by 2031. Saudi Arabia is spending billions on sports and founded LIV Golf, a tour that includes teams in what is usually a solo game; next the country will reportedly invest as much as $2bn in a professional boxing league. Investors are rooting for many of the upstart leagues, and it is not hard to understand why. Teams have appreciated handsomely over the past few decades in America, with valuations outperforming the S&P 500. A #sports franchise also offers diversified income streams, with revenue from broadcast deals, sponsorship, ticket sales and merchandise. Traditional teams are few and expensive, especially since private-equity firms and sovereign-wealth funds have got in the game in recent years; startup leagues are cheaper, but still come with bragging rights for wealthy owners. A professional baseball squad costs about a hundred times more than a bull-riding outfit, but a PBR Teams event can have as many viewers as some baseball teams, according to Marc Lasry of Avenue Capital Group, a hedge fund that owns the New York Mavericks and has invested in SailGP and pickleball. “There’s a huge arbitrage there,” he insists. Rapidly appreciating #media rights have boosted the value of teams and given an assist to new leagues. In a business full of uncertainty, sports enthusiasts are probably the biggest fans of live #entertainment. Broadcasters are paying ever more for the privilege of distributing it to them. The entry of streamers like Amazon Prime Video, Apple TV + and Netflix into the scrum has further pushed up prices for sports rights. Once leagues had to compete for limited airtime; now there is a platform for everyone and everything. I don’t think this would have happened 20 years ago without the advances in #technology. There’s just more eyeballs out there,” says Mike Keenan, who runs the sport practice for PwC Intense fan culture, which has swept the world of entertainment writ large, has given new teams a boost. So strong is appetite for watching #sport that viewers want to turn on shows about athletes even when they are off the pitch. PBR was the subject of Netflix and Amazon series. Next year Brad Pitt will star in a #film about Formula 1, which has already featured in a hit documentary series on Netflix. In other words, there are more ways than ever to find fans—and to be one. That does not mean that a golden age for leagues will translate into gold for everyone. “Historically there is a lot of roadkill in this space” #TV #streaming