We believe a series of global macro tailwinds will help drive value creation across the TMT sector. Additionally, the sports industry offers its own secular trends that will further support significant value creation across the asset class. Below is a round up of industry news highlighting some of these themes and related transactions.
- Apple recently revealed its mixed-reality headset, Apple Vision Pro, that will change how people experience sports as fans can quickly switch between VR and AR
- The device has features such as multi-view broadcasts, immersive replays, and is expected to feature sports-watching and fitness on the headset
- ABC's live broadcast of the Formula 1 Monaco Grand Prix drew ~1.8m average viewers, marking the largest live U.S. audience ever and the 3rd?largest live audience for any F1 race in the country
- This year’s race outperformed last year’s viewership of ~1.6m average viewers on ESPN; F1 races are also up ~5% across ESPN, ESPN2, and ABC this season compared to last year
- Cricket’s popularity continues to soar with the 2023 IPL Final between the Chennai Super Kings and Gujarat Titans setting a new global record for digital viewership of ~32m concurrent viewers on JioCinema
- Cricket's popularity surge has led to increased investment and media attention, with efforts underway to add cricket to the 2028 Summer Olympics
- DAZN achieved record viewing figures for its coverage of the UEFA Women's Champions League in the 2022-23 season, with over 50m views on its dedicated YouTube channel (17% increase from previous season)
- Viewership increased across all devices, with mobile viewership rising ~53% and female viewership up ~3%
- In addition to allowing fans to invest in the outcome of sporting events, legalized sports betting also provides access to general sports information and insights
- Fans can now use sports betting lines to predict outcomes, and can use this to signal their sports expertise to their social networks
- PLL plans to assign all 8 of its clubs to home cities, states, or regions, and the league will invest in local marketing, community engagement, and non-profit work to drive fan engagement and sales
- The league believes tying clubs to cities will increase fan passion and create a stronger connection to sports traditions to attract both existing and casual fans
- The parties said that the agreement combines the golf-related business from Saudi Arabia’s sovereign wealth fund with the commercial and business rights of the PGA Tour and European Tour into a new, collectively owned for-profit entity.
- The parties also said that the merger will end the litigation between the parties, which have been at odds in court and in the court of public opinion since LIV’s launch.
- Alexis Ohanian and Serena and Venus Williams have purchased the first club in TGL, the new Monday night golf league backed by Tiger Woods and Rory McIlroy.
- The new team, called Los Angeles Golf Club (LAGC), is one of the inaugural six that the league is planning to auction before it begins play next year.
- TGL, a partnership between TMRW Sports and the PGA Tour, is hoping to use new technology, a shorter format and a custom-built venue in Florida to package golf in a brand-new way. Golfers already committed to the league include Woods, McIlroy, Jon Rahm and Collin Morikawa.
- The owners of the Chicago Sky have sold 10% of the team to a group of eight investors, most of them women, at an $85 million valuation—the second-highest in the league behind Seattle.
- The Storm raised $21 million from 15 new investors earlier this year at a $130 million valuation (which was widely reported as a $151 million post-money valuation).
- The new investors include Laura Ricketts, co-owner of MLB’s Chicago Cubs, and Foot Locker CEO Mary Dillon as well as Laura Desmond, CEO of Smartly.io, founder and CEO of private equity firm Eagle Vista Partners and operating partner at Providence Equity Partners.
- Spanish titans Real Madrid have topped Forbes’ latest list of the most valuable soccer teams in the world with a valuation of US$6.07 billion.
- Real Madrid increased their valuation by 19% YoY to US$6.07bn.
- Manchester United ranks second on the list with a $6bn valuation, up 30%.
- English soccer club Leeds United are set to be sold to 49ers Enterprises and the new owners could be in place within a week, according to The Telegraph. Deal includes ownership of Elland Road
- The investment arm of the National Football League’s (NFL) San Francisco 49ers initially took a 15 percent stake in Leeds in 2018 for a reported sum of UK￡10 million (US$12.4 million) before gradually increasing its shareholding in the team, which now stands at 44 percent.
- 49ers Enterprises already had the option to take control of Leeds from Andrea Radrizzani’s Aser Ventures and was reportedly trying to complete a takeover of the Yorkshire outfit during the 2022/23 season.
- However, the club’s eventual relegation from the Premier League to the second-tier Championship complicated matters. 49ers Enterprises’ original deal, which purportedly valued Leeds at more than UK￡400 million (US$497 million), was contingent on the club staying in the top flight.
- The Saudi sovereign wealth fund, PIF, has acquired majority stakes in four of Saudi Arabia's biggest soccer clubs, including Al Nassr, which is the team Cristiano Ronaldo plays for.
- The move is part of a government initiative to privatize and develop the clubs, with the aim of making the Saudi Pro League a top global league and attracting elite players.
- Experiential Squared (E2), the parent company to global racehorse ownership platform MyRacehorse, has raised US$7 million?in a recent funding round.
- The additional funding will allow E2 to expand its business into other sports and territories. Currently, the company is operating in the US and Australia, with the MyRaceHorse platform currently boasting an active user base of close to 100,000. The UK and Ireland are the next?target?markets for E2.?
- MyRacehorse app allows users to review, analyze, and purchase fractional shares in racehorses at a low entry point.
- The company could first be expanding its operations into the NASCAR motorsport series, having confirmed that negotiations for the purchase of a prominent team were already underway.
- Hang Media has raised ~$5 million between its seed and ongoing Series A round to build out a platform that hosts athlete-led video watch parties during sporting events.
- Hang is working to deliver memorable second screen viewing experiences, by creating opportunities for fans to connect and interact with one another and their favorite players, that sit alongside the traditional three-hour game broadcast. The early returns suggest the startup has tapped into a fundamental behavioral trend.
- The average Hang stream draws 800,000 spectators for 80 minutes. 40% of those viewers are between 18 and 34 years of age.
- Sports and entertainment technology partnerships insights platform Zoomph announced the completion of its Series A funding round spearheaded by Jurassic Capital, a growth equity firm in the SaaS vertical based in Durham, N.C.
- The round also includes Lalotte Ventures, a Montreal early-stage VC fund in the portfolio of Seattle Kraken limited partner Mitch Garber. Lalotte made an investment in betting odds supplier Sports IQ in 2021. Zoomph had previously raised $1.7M in funding in a seed round on Jan 1, 2017.
- Zoomph’s business intelligence product measures and analyzes engagement across social, streaming, linear and OTT, providing broadcast media valuations and consumer insights.
