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 roundup of industry news highlighting some of these themes and related transactions.
- Julianna Barbieri, Senior VP of Content and Partnerships at the International Tennis Hall of Fame (ITHF), spearheaded the development of a virtual reality metaverse museum within six months, featuring tennis legends, curated exhibits, and interactive experiences, with Infosys as the developer.
- The ITHF aims to provide an interactive and free virtual experience for fans worldwide, sharing the history of tennis and celebrating the sport's icons, with no intention to charge for access.
- The success of the metaverse venture will be measured by visitor engagement, time spent in the metaverse, and repeat visits, potentially leading to future expansions like incorporating Oculus Rift or introducing a virtual store and NFTs. Other hall of fames has also embraced virtual components for immersive museum experiences.
- Charter Communications has reached a deal with Disney to restore Disney-owned networks to its pay-television customers, ending a nearly eleven-day blackout. Charter agreed to a significant increase on its previous annual fee of over $2.2 billion to Disney, but the deal includes access to ad-supported versions of Disney+ and ESPN+ for Charter's customers, extending the reach of Disney's streaming platforms.
- The inclusion of streaming elements in the deal is seen as a potential tipping point for the industry, setting a precedent for future agreements between providers and networks with streaming services. Other carriers and networks with streaming platforms, such as NBC/Peacock, CBS/Paramount+, and TNT/TBS/Max, may consider similar deals in the future.
- The deal allows Disney to potentially increase subscriptions by making it easier for Charter customers to sign up for non-ad-supported Disney+ or ESPN+ and have the payment added to their cable or broadband bill. Despite initial concerns, the deal suggests that the current pay-tv ecosystem is likely to remain in its current form for the foreseeable future.
- The Vegas Golden Knights and Scripps have launched a direct-to-consumer streaming service called KnightTime+ as the team shifts its local TV broadcasts from AT&T SportsNet to Scripps-owned broadcast station KMCC this season.
- KnightTime+ will offer fans within the team's television territory the ability to stream all 69 locally broadcast regular-season games, along with the first round of the playoffs, on various devices for a subscription fee of $69.99. Alternatively, fans can purchase individual games for $6.99 each.
- The platform was developed in partnership with ViewLift and includes a trial period during which the club's six preseason games are available for free to users.
- The Ohio State vs. Notre Dame college football game drew a historic viewership of 10.5 million on NBC.
- This high viewership reflects the enduring popularity of college football and the strong fanbase for both Ohio State and Notre Dame.
- The game's success in terms of viewership highlights the value of college football as a television sports property and its ability to attract a significant audience.
- The NFL Thursday Night Football matchup between the San Francisco 49ers and New York Giants, streamed exclusively on Amazon Prime Video, set a viewership record with an average audience of over 11.2 million viewers.
- This high viewership indicates the growing popularity of streaming platforms for live sports events and the potential for future digital partnerships in the sports broadcasting landscape.
- The success of this game on Amazon Prime Video demonstrates the increasing importance of digital platforms in reaching sports fans and engaging a broader audience.
- The Australian Football League (AFL) and AFL Women's (AFLW) have reached a historic joint agreement for a new collective bargaining agreement (CBA) that covers both men's and women's leagues. This agreement is a significant step toward gender equity in Australian sports.
- The CBA ensures equal pay for male and female players, marking a landmark achievement in the world of professional sports. Both the AFL and AFLW players will receive the same base pay and match payments.
- Additionally, the agreement outlines a guaranteed season schedule for both leagues until 2027, providing stability and growth opportunities for Australian football.
NFL’s Next International Goal (Transformational Growth Levers)
- The NFL is exploring the possibility of hosting regular-season games in Spain and Brazil as part of its international expansion efforts. These potential international games aim to further grow the NFL's global fan base and brand presence.
- While the NFL has successfully hosted games in London and Mexico City in the past, Spain and Brazil represent new frontiers for American football. Expanding into these countries could introduce the sport to new audiences and create opportunities for fan engagement.
- The NFL's international push aligns with its strategy to make American football a global sport and increase its reach beyond the United States, potentially paving the way for more international games in the coming years.
- NFL's partnership with BetMGM and the launch of a new in-game betting platform called BetVision aims to engage football fans in sports betting during live games.
- BetVision will offer real-time betting odds, statistics, and interactive features to enhance the betting experience for NFL fans while they watch games through streaming platforms or the NFL app.
- The NFL sees this initiative to cater to the growing interest in sports betting and to provide fans with an immersive and interactive way to engage with NFL games through live betting options.
- The increasing interest from Wall Street investors in sports leagues highlights their growing involvement and investments in various sports properties.
- Wall Street investors are attracted to sports leagues due to the potential for significant returns on investment, driven by factors such as media rights deals, expanding digital platforms, and the global popularity of sports.
- However, there are still challenges and risks associated with Wall Street's involvement in sports, including concerns about the commercialization of sports and potential conflicts of interest between investors and the leagues' objectives.
- NFL owners are considering increasing their debt limit from $350 million to a substantial $1.6 billion, potentially allowing teams to access more capital for various purposes.
- This move could provide NFL franchises with greater financial flexibility for investments such as stadium renovations, player contracts, and other strategic initiatives.
- The proposed debt limit increase reflects the NFL's recognition of the evolving financial landscape in professional sports and the desire to remain competitive and financially secure in the industry.
- A group of investors associated with the Chicago Bears, an NFL team, has acquired Bournemouth Football Club, a lower-league English football club, from owner Bill Foley.
- The purchase of Bournemouth FC by the Chicago Bears investors marks their expansion into the international sports market, diversifying their sports portfolio beyond American football.
- This move reflects the growing trend of American sports franchises and investors seeking opportunities in international sports, demonstrating the appeal of soccer and its potential for growth in the global sports industry.
- The Golden State Warriors, an NBA team, are considering selling a minority stake in the franchise, which could generate significant interest from investors.
- The potential sale is estimated to value the Golden State Warriors at over $6 billion, underlining the robust financial position and market appeal of the franchise.
- This move aligns with the broader trend in professional sports, where teams explore selling minority ownership stakes to attract capital and leverage the increasing value of sports franchises in the market.
- Drew Scott, known for his role in the popular TV series "Property Brothers," has acquired a minority stake in the Western Hockey League's (WHL) Vancouver Giants.
- This investment highlights the growing interest of celebrities and well-known personalities in sports ownership, especially in the junior hockey league, as they seek to contribute to the development of young athletes and promote the sport.
- Drew Scott's involvement in the WHL's Vancouver Giants demonstrates the potential for partnerships between entertainment figures and sports organizations to further popularize and support minor league hockey.
- A women's professional volleyball league, known as Athletes Unlimited Volleyball, has secured $35 million in funding in its latest investment round.
- This significant funding infusion showcases the growing interest and financial support for women's sports and leagues, emphasizing the potential for growth in the women's volleyball market.
- Athletes Unlimited Volleyball aims to leverage this capital to enhance its operations, expand its reach, and further develop opportunities for female athletes in the sport.
- NBA legend Magic Johnson has expressed openness to potentially acquiring a minority ownership stake in the New York Knicks, a storied franchise in the league.
- This development underscores the appeal of the Knicks as an investment opportunity in the sports industry, with Johnson's interest highlighting the ongoing trend of prominent figures exploring ownership roles in professional sports teams.
- While discussions are in the early stages, Magic Johnson's potential involvement in the Knicks' ownership group could bring added prestige and recognition to the franchise.
- Spire Motorsports, a NASCAR Cup Series team, has acquired Kyle Busch Motorsports, a prominent team in the NASCAR Camping World Truck Series, expanding its presence in the sport.
- This acquisition allows Spire Motorsports to diversify its involvement in NASCAR, tapping into the truck series, and potentially providing more development opportunities for emerging talent.
- The move underscores the evolving landscape of NASCAR and the strategic decisions made by teams to enhance their competitive edge and long-term sustainability within the sport.
- Tottenham Hotspur, a Premier League football club, is currently valued at approximately $2.8 billion, according to recent reports.
- The club has expressed openness to selling a stake in its ownership, which could potentially attract investment from interested parties looking to be part of the football industry.
- This move by Tottenham reflects the increasing trend of sports franchises seeking outside investment to enhance their financial stability and competitiveness in the global sports market.
- Ryan Sports Ventures, led by Rex Ryan, the former NFL coach, is exploring the possibility of acquiring a minority stake in multiple European soccer teams, particularly in England's Premier League.
- The potential investment signifies the increasing interest of American sports figures and investors in European soccer, recognizing the global appeal and financial potential of the sport.
- This move aligns with the trend of cross-border ownership and investment in the sports industry, as American investors seek opportunities in the lucrative world of European soccer.
- French soccer club Olympique Lyonnais, commonly known as Lyon, is actively seeking to raise €300 million (approximately $332 million) in capital.
- The capital raise is aimed at strengthening Lyon's financial position and supporting the club's growth and development, both domestically and internationally.
- This initiative underscores the financial challenges faced by many football clubs and the importance of securing substantial investments to remain competitive and sustainable in the highly competitive world of European soccer.
- LKYSUNZ, an Asian Formula 1 (F1) team hopeful, has successfully secured $1 billion in funding, signaling its strong commitment to entering the competitive world of Formula 1 racing.
- This substantial funding injection positions LKYSUNZ as a serious contender in its pursuit to become an F1 team, as it demonstrates financial stability and the ability to meet the high costs associated with participation in the F1 championship.
- The investment highlights the growing interest and potential for expansion of Formula 1 in the Asian market, as well as the attractiveness of motorsport as an investment opportunity for businesses and entrepreneurs in the region.
- Rugby Australia (RA) has chosen to borrow $60 million rather than seeking private equity investment in the short term, indicating a preference for financial stability over a quick infusion of cash.
- The decision reflects RA's cautious approach to managing its finances and avoiding a potentially short-term boost from private equity, which could have long-term implications for the organization's control and decision-making.
- RA's choice underscores the importance of maintaining independence and control in the long run, even if it means taking on debt to support its operations and development.
- The PGA Tour is exploring the possibility of attracting US investors to join its Liv Golf Investments venture, which is aimed at creating a new global golf league.
- Saudi Arabia's Public Investment Fund (PIF) has expressed interest in supporting the Liv Golf project, potentially injecting significant capital into the venture.
- The PGA Tour's consideration of US investors and Saudi PIF involvement highlights the evolving landscape of professional golf and its pursuit of new investment opportunities and international expansion.
- TeachMe, an edtech startup focused on sports and entertainment education, has secured seed funding from 1984 Ventures, a sports tech investment firm.
- The amount of the seed funding round has not been disclosed, but this investment demonstrates growing interest in the intersection of sports and education technology.
- TeachMe aims to leverage this funding to expand its platform, offering specialized courses and educational content to individuals interested in sports and entertainment industries, emphasizing the potential for innovative education solutions in the sports sector.
- WBDS, a sports marketing and talent agency founded by Chris Georgiou, is among the investors in a new athlete-focused fund.
- The fund aims to support athletes in various sports by providing financial backing and resources to help them excel in their careers.
- This initiative reflects the growing trend of athlete-centered investment and support structures, recognizing the importance of athlete development and success both on and off the field.
