The Sports Playmaker: Investment Roundup (21st April)

Liberty Media Anticipates Huge ROI on $500M Investment in Las Vegas Grand Prix

Formula 1 owner, Liberty Media, has reportedly invested over $500 million in its Las Vegas operations, with a permanent paddock building set to provide key race functions and host year-round events. Liberty CEO Greg Maffei spoke to investors last week and assured them that the company would see a "very good return on that money," which has been applied to infrastructure and promotions around the Las Vegas Grand Prix scheduled for November.

The 300,000-square-foot paddock facility is around 60% complete, according to reports. Maffei stated that while the race will have a high revenue stream and cost stream, it is more important to ensure a great experience for everyone involved in the first year.

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LeBron James and Fenway Sports Group Invest $900 Million in Pittsburgh Penguins

LeBron James, the Los Angeles Lakers star, is no stranger to diversifying his financial portfolio. The NBA icon has several sources of income, ranging from his lucrative playing contract to his media company and even his production deals. However, one of the most noteworthy aspects of James' financial success is his ownership of Fenway Sports Group (FSG).

FSG is a global sports and entertainment company that owns and operates some of the most iconic franchises in sports, including the Boston Red Sox, Liverpool FC, and most recently, the Pittsburgh Penguins. FSG's latest investment in the NHL team has piqued the interest of many, including fans of the team and James himself.

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PointsBet Hires Investment Bank for Sale of U.S. Sports Betting Business

PointsBet, an Australian-based sports betting operator, has hired Moelis & Company, a New York-based investment bank, to sell its North American business. According to the Australian Financial Review, PointsBet has yet to make a profit in the US market, which is dominated by major sportsbooks like DraftKings and FanDuel. As the seventh-largest sports betting operator in the US in terms of market share, PointsBet is looking to take advantage of the inevitable industry consolidation.

PointsBet's decision to sell its North American business does not come as a surprise, as the company explored a sale of its Australian operations in 2022 to Melbourne-based Betr in a deal valued between $135 million and $168 million. However, the company rejected Betr's offer in December 2022, deeming it too low.

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Social Cycling App Receives Funding Boost From Sports Stars

Link My Ride, a social cycling app, has secured investment from a range of high-profile names across the sports industry, including Formula 1 star Valtteri Bottas, professional cyclists Daryl Impey, Tiffany Cromwell, and Ryan Gibbons. The investment will help to secure the next phases of development, adding strength to the leadership board with years of collective experience and expansive networks across the sport.

Valtteri Bottas, a ten-time Formula 1 race winner currently representing the Alfa Romeo-Ferrari team, made headlines in the cycling world after finishing fourth in the SBT GRVL event in Colorado in 2022. He has since launched FNLD GRVL, a new gravel cycling event in Lahti, Finland. He said that he was excited about the potential of Link My Ride and wanted to explore business opportunities that excite him personally.

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Investment Opportunity

Hexis is a digital ecosystem platform that empowers athletes and coaches with 24/7 personalised nutrition powered by AI. The need for personalised, data-driven nutrition has never been greater, but nutritionists cannot scale to meet the real-time demands of the consumer. Hexis is the future of personalised nutrition coaching.

The software-as-a-service product was launched in Q3 2022 and is now generating revenue from both B2B (sports teams, organisations, coaches) and B2C (athletes and fitness enthusiasts) channels. The business model includes three-, six- and 12-month subscriptions, with over 500 paying subscribers. Hexis anticipates 10,000 users by the end of year one, generating over GBP635,000 in revenue, growing to 355,000 users and over GBP30m in revenue by year five.

Hexis is seeking GBP1.5m for tech and product development, marketing, salaries and other overheads.

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