Investing in sports teams offers uncorrelated growth and potential high returns

  • Private investors are turning to sports for diversification and growth opportunities
  • Major investors include Certuity, Arctos Sports Partners, Redbird Capital Partners, and Caz Investments
  • Private-equity firms have stakes in 63 major sports teams in North America valued at $234.3 billion
  • Sports teams’ growth is driven by media rights and long-term contracts
  • Sports teams are scarce assets with high global viewership
  • Certuity has invested in NBA, MLB, and European soccer teams
  • Investors should consider factors such as team profitability, viewership, and league-level capabilities
  • Expected returns are generally consistent with double-digit private equity returns
  • Certuity is interested in emerging sports leagues for future opportunities

Private investors are increasingly looking to sports as a way to diversify their portfolios and capitalize on the growth of sports leagues and teams. Major investors in this space include Certuity, Arctos Sports Partners, Redbird Capital Partners, and Caz Investments. Private-equity firms currently have stakes in 63 major sports teams in North America, with a total value of $234.3 billion. The growth of sports teams is driven by media rights and long-term contracts, which provide a steady stream of revenue even in tough times. Sports teams also have high global viewership and are considered scarce assets. Certuity, for example, has invested in NBA, MLB, and European soccer teams. When investing in sports, it’s important to consider factors such as team profitability, viewership, and league-level capabilities. Expected returns are generally consistent with double-digit private equity returns. While Certuity is currently focused on major, traditional sports teams and leagues, they are also keeping an eye on emerging leagues for future opportunities. Investing in sports teams offers uncorrelated growth and the potential for high returns.

Public Companies: Phoenix Suns (N/A), Portland Trail Blazers (N/A), Certuity (N/A), Arctos Sports Partners (N/A), Redbird Capital Partners (N/A), Caz Investments (N/A), Major League Baseball (N/A), National Basketball Association (N/A), National Hockey Association (N/A), Major League Soccer (N/A), National Football League (N/A), Blue Owl (N/A), Dyal Homecourt Partners (N/A), Atlanta Hawks (N/A), United Wholesale Mortgage (N/A), Women’s National Basketball Association (N/A), English Premier League (N/A), NHL (N/A), MLB (N/A)
Private Companies:
Key People: Mat Ishbia (CEO of United Wholesale Mortgage), Dylan Kremer (co-CIO at Certuity)

Factuality Level: 7
Justification: The article provides information about the increasing interest of private investors in sports leagues and teams, and the reasons behind this trend. It mentions specific investment firms and their involvement in various sports leagues. The article also discusses the factors that make sports a potentially attractive investment, such as media rights and long-term contracts. However, the article lacks specific data or evidence to support some of its claims, such as the valuation of sports teams and the potential returns for investors. Overall, the article provides some useful information but could benefit from more in-depth analysis and supporting evidence.

Noise Level: 7
Justification: The article provides information on the increasing trend of private investors investing in sports leagues and teams. It discusses the reasons why sports are seen as an attractive investment opportunity, such as the uncorrelated growth and revenue streams from media rights. The article also mentions specific investment firms and their involvement in sports investing. However, the article lacks in-depth analysis and evidence to support its claims. It also briefly touches on the risks of sports investing without providing a comprehensive examination. Overall, the article provides some insights into the topic but lacks depth and rigor.

Financial Relevance: Yes
Financial Markets Impacted: The article discusses private investors seeking to capitalize on the growth of sports leagues and teams, which could potentially impact the financial markets and companies involved in the sports industry.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on the investment opportunities in sports leagues and teams, without mentioning any extreme events or their impact.

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