SportsInvest Newsflash (by Oakwell Sports Advisory)
Stay up-to-date with sports investment trends & events worldwide
Top Stories of the Week
Barcelona sells 24.5% stake in Barca Studios to Socios for $100m
Spanish soccer giants FC Barcelona have sold a 24.5% stake in its Barca Studios production arm to blockchain specialist firm Socios for $100m.
The transaction is the third recent injection of capital into the club through the use of what are described as ‘economic levers’ designed to improve Barca’s financial situation and help it sign players for the upcoming LaLiga season.
Barcelona have already sold 25% of their domestic broadcast income for the next 25 years and members have approved the sale of 49.95% of the club’s merchandising business to raise more immediate capital.
JD Sports sells Footasylum to Germany's Aurelius for €45m
Britain's largest sportswear retailer JD Sports Fashion will sell Footasylum to German asset management firm Aurelius Group for an enterprise value of about €45m.
Britain's competition regulator last year ordered JD Sports to sell Footasylum after it found that the combination could lead to a "worse deal" for consumers.
JD Sports, which sells brands such as Nike, Adidas, and Puma in its physical and online stores, bought Footasylum in 2019 for £86m in its quest for dominance in the sportswear market.
Flutter raises $1bn investment for sports betting’s future
FanDuel and Fox Bet’s parent company has raised $1bn to help finance growth, especially into emerging U.S. markets. Flutter sold eight million shares to investors to raise the capital. The move follows Flutter’s $6bn merger with The Stars Group, which was completed on May 5.
Fox Bet was originally created as a partnership between Fox and TSG, and Fox bought a 5% stake in TSG back in May 2019, which transferred over during the merger. Fox is now reportedly also planning to increase its stake in Flutter, though exact details of that deal have not been made public.
Flutter’s gaming assets include FanDuel and betting technology firm The Stars Group, which helped develop the Fox Bet mobile sports betting platform that launched last September.
Football
Serie A head warns foreign buyers not to put short-term profit over long-term investment
The president of Italy’s top football league has warned that foreign buyers of clubs must avoid the temptation of prioritising quick profits over long-term investment, as investors continue to pour capital into the sport.
Serie A president Lorenzo Casini, who was elected to the role in March, said he welcomed the arrival of foreign club owners and their expertise in sports but expressed concern that short-term goals could trump the wider needs of the league as a whole, such as improving Italy’s creaking stadiums.
The former head of cabinet of the Italian Ministry of Culture pointed out that some investors may have an investment horizon of five to seven years rather than a longer-term objective.
Fabregas commits to Serie B club Como as player and shareholder
Former Arsenal star Cesc Fabregas will become a shareholder at Italian Serie B club Como following his move to Italy.
The Spaniard became a part-owner of the Serie B club after penning a two-year playing deal, the club’s chief executive Dennis Wise confirmed.
“He owns part of the club, he’s a shareholder,” Wise told UK media. ”That’s what Cesc wants to get involved in. He’ll be here a lot longer than expected really. It was important, he felt that way, to be part of it going forward long-term. He could see what we’re trying to achieve at this football club. There’s a lot more to be done at the football club regarding where we want to end up, in Serie A. He sees it as a good opportunity and I’m pleased he’s on board.”
Motorsport
F1 star Hamilton joins Broncos ownership group
Lewis Hamilton, the Formula 1 motor racing star, has joined the ownership group of American football's Denver Broncos NFL team.
The franchise announced the addition of the seven-time world champion today and will join the Walton-Penner family ownership group that acquired the team in June.
The Walton-Penner consortium, led by billionaire Rob Walton, the heir to the Walmart corporation, along with his daughter Carrie Walton Penner and her husband Greg Penner, purchased the Broncos for $4.65bn, a record fee for a sports team.
Hong Kong billionaire Lo says Asian investors are eyeing F1 opportunities
Hong Kong-based businessman Calvin Lo says that he and other Asian investors are assessing opportunities to back Formula 1 teams.
Lo, who is the chief executive of insurance firm RE Lee International, confirmed he has an investment in the Williams team via its owner Dorilton Capital. It has been reported that the US-based company makes investments on Lo’s behalf.
Lo said he and other Asian investors are currently looking at “other teams, other opportunities”. He added: “In Asia right now, there is a lot of liquidity sitting around, it’s mind-blowing. I wouldn’t be surprised if the next news you hear…is maybe some consortium in Asia investing into some other teams.”
Porsche courts gulf sovereign funds for landmark IPO
Porsche is trying to secure anchor investments from some of the largest Middle Eastern sovereign wealth funds, as the iconic sports-car maker looks to pull off one of Europe’s biggest listings amid market headwinds and valuation concerns.
Abu Dhabi’s Mubadala Investment Co. and ADQ are among those considering committing funds to the Volkswagen AG unit’s listing. State-owned entities in other Gulf markets, including Saudi Arabia, are also exploring investments.
Advisers on the IPO have also approached major Canadian and Malaysian funds, as well as the Norwegian sovereign wealth fund. Volkswagen is considering offering more than 5% of Porsche’s preferred stock to anchor investors.
North Amercia
Dallas Cowboys top Sportico's NFL valuations at $7.6bn as average tops $4bn
The average NFL franchise is worth $4.14bn, up 18% over last year, according to Sportico’s calculations, which were derived from interviews with more than 30 bankers, lawyers, team executives, owners and consultants involved in the sport, as well as public documents. Collectively, the value of NFL franchises, including team-related businesses and real estate held by owners, is $132bn.
The Dallas Cowboys are the most valuable franchise in football and across all of sports at $7.64bn, $630m ahead of MLB’s Yankees. There are 16 NFL franchises worth at least $4bn, versus seven total in the other U.S. sports leagues (four MLB, three NBA).
Las Vegas Raiders valued at $6.5bn in offer for minority stake
The team’s value has skyrocketed after just two seasons in Sin City, at least based on the valuation in a pending sale of a minority stake.
Majority owner Mark Davis has an offer on the table for a limited-partner stake that places an enterprise value (the valuation for the entire team, including debt) of $6.5bn. The Raiders, who have paid off their $325m relocation fee to move from Oakland, have $1.3bn of debt, mostly related to the financing of $1.9bn Allegiant Stadium.
New Era gets new funding as major sports leagues take minority ownership stakes
New Era Cap Co.’s new deal to bring in more investors does much more than raise money for one of Buffalo’s biggest private companies.
It cements its relationship with three major professional baseball, football and basketball leagues that are its most important customers by bringing them in as minority owners.
Under the deal announced Thursday, New Era’s biggest minority investor, private-equity firm ACON Investments, is expanding its ownership stake beyond the 15% to 20% position it took in the sports apparel company beginning in January 2021. Neither ACON nor New Era said how much of a stake it now holds in the company.
The new investors brought into this deal are significant ones. Major League Baseball, the National Football League and the National Basketball Association will become minority owners in New Era, giving three of its biggest sports partners a direct stake in the company.
Basketball
Smart backboard maker joins race to create basketball’s digital future
With a “smart” basketball hoop design three years in the making, Huupe is hoping to bring the connected fitness era to the blacktop. The startup recently closed a seed round, having raised more than $3m to date.
Sports agency Paradigm Sports led the round, while NBA vets Thaddeus Young and Trevor Booker have invested as well.
Huupe’s design centers around the backboard, turning much of the glass into a large, protected screen paired with multiple sensors that could be used for activity tracking, remote training or virtual competitions. The company hopes to hit the market next year with a $4,000 product for indoor use (in-ground hoops regularly cost more than $2,000). Huupe is also planning to offer a subscription service.
Golf
Blitzer, Wie West, and EP Golf close $5.5m round for sports AI startup
Sportsbox AI, a company that uses motion-capture technology to improve athletic performance, has closed a $5.5m seed round from a group that includes golf pro Michelle Wie West and David Blitzer, co-owner of the Philadelphia 76ers and New Jersey Devils.
The round was led by EP Golf Ventures, a new investment partnership between the PGA of America and Elysian Park, a firm backed by the owners of the Los Angeles Dodgers. Announced in July, EP Golf’s aims to invest in companies that are innovating the sport, particularly in the world of coaching, training, health, hospitality and agriculture.
Sportsbox AI’s first product is golf-focused. It allows for 2D video shot from a smartphone to be converted into a 3D version that can be viewed from six different angles. The technology helps golfers—and instructors—analyze their swings and view important biometrics without the need for expensive motion-capture cameras or sensors.
Fantasy
Jock MKT, the stock market app for sports, raises $10m
Jock MKT, a fantasy sports app that lets users buy and sell shares of athletes, has raised $10m in Series A funding. The funding will be used to expand Jock MKT’s mobile app into 44 U.S. states and Canada.
New York-based Left Lane Capital led the round alongside participation from sports technology investment firm Will Ventures and Ryan Moore, a founding investor and board member at DraftKings. Boston-based Jock MKT launched last year and offers fantasy contests around the NFL, NBA, MLB, NHL, and PGA Tour.
The app lets users spend real money to buy virtual shares of athletes to use them in daily fantasy contests. An IPO is listed for each player prior to the start of contests, with share price fluctuating based on trading activity. Users can sell their shares to other players or hold on to them to receive payouts based on their score at the end of contests.
Cycling
Dutch Sport Tech Fund invests in cycling app co-founded by Tour De France stage winner Tom Pidcock
Dutch Sport Tech Fund, an investment firm based in Amstelveen, Netherlands, has invested in a cycling community app cofounded by professional rider Tom Pidcock, winner of a critical stage in this year’s Tour de France.
The fund seeks to invest in sports technology companies operating in athlete performance, data and analytics, as well as fan engagement.
Link My Ride, founded by Pidcock and former teammate Jacques Sauvagnargues, will allow riders, clubs, and brands to connect via a smartphone app and desktop platform.
Venture Capital
OutField Capital looks to the future with new R$50-70m investment fund
Brazilian venture capital fund OutField Capital, best known for its investments in esports organisation Team oNe and content platform Final Level, has announced the launch of a new venture fund in a move that sets its esports sights even higher.
OutField Capital 2 aims to raise between R$50m (£9.53m) and R$70m (£13.35m).
The fund promises to take advantage of all the knowledge gathered by OutField since its foundation in 2016, with the hope of taking its ventures to a new level. Alongside its investments, OutField also gained prominence in Brazilian esports through its consultancy services with a number of organisations.
Metaverse
Gen Z sports metaverse startup Stadium Live raises $10m to fund expansion
Stadium Live has raised $10m funding to continue the development of its digital environment for Gen Z sports fans.
The Series A round was led by KB Partners and Union Square Ventures, while it also included NBA star Kevin Durant’s Thirty Five ventures, as well as French soccer player Blaise Matuidi’s Origins Fund.
Dapper Labs Ventures, Position Ventures, Valhalla Ventures, 6th Man Ventures, Alumni Ventures, and Breakout Capital also participated.
Would you like to know more about sports investment over the coming weeks?
Please feel free to subscribe:
And to share :)
Best,
Achille