STN #117 - The 2023 trend ??

?? The 2023 trend ??

Like every year-end, we are bombarded with communications about the recap of the past year and predictions about the future.

So I want to add to the list by pointing out a trend that I see as extremely clear and that can bring a major leap forward for sports organisations: investments in sports-tech companies.

After the NBA, which has repeatedly declared and demonstrated its change in business model, the owners of the other major league in the USA, the NFL, have also approved a new investment this time in the sneaker and clothing company NOBULL.

The company had already reached an agreement in October to become the official partner of the NFL Scouting Combine.

For the uninitiated, the NFL Scouting Combine is a week-long American football sporting event held each year in late February and early March.

During the days of the event, the executive heads, coaches, doctors and scouts of the 32 National Football League (NFL) teams observe more than 300 of the best players from various colleges around the country undergo aptitude, medical and individual tests with the aim of proving their abilities ahead of the upcoming NFL Draft held at the end of April.

In addition, the NFL owners have also agreed to add $5 million each - for a total of $160 million - in 32 Equity, the league's investment fund.

This contribution brings the total amount invested by the owners in 32 Equity to $256 million, not counting the proceeds already re-invested.

Since its founding in 2013, 32 Equity has invested in NFL data provider Genius Sports, athlete recovery device company Hyperice, and software companies Appetize, Skillz, and Strivr, all of which work with the league.?

Last April, the league also invested $320 million in Fanatics, with a valuation of $27 billion.

The company has relationships with the league as a retailer and supplier of collectables, as well as a sports betting deal with the Washington Commanders.?

The trend is therefore clear: to decouple the business model from TV rights and sponsorship alone and to link up, through investments, with the most strategic partners, helping them to grow in every dimension of the business: an absolutely WIN-WIN approach that, I imagine, we will also see very soon in Europe.

Merry Christmas!

?? The software that optimises transfers ??

Sevilla FC has recouped more than €1,000,000 in player transfer fees after developing new software that helped the LaLiga club identify more than 700 transactions involving home-grown players in 53 leagues and competitions in the last two years alone.

For each transfer in a player's career, FIFA imposes compensation on the club or academies that trained the player from the age of 12-23, typically five per cent of the transfer.?

In collaboration with LaLiga Tech, Sevilla's Transfer Tracker is now available under licence to help other clubs keep track of relevant transfers and submit appropriate compensation claims.

Until now, in fact, only the most prominent clubs have always had the staff to track all transfers, losing track of all movements and not getting the compensation they were entitled to.

LaLiga Tech reports that it has already started working with Argentinian, Brazilian, Chilean and Portuguese clubs to implement the tool, inviting other clubs to express interest.

?? A new sports-tech fund from an athlete ??

Indian cricket star Shikhar Dhawan has announced the launch of a $75 million sports technology investment fund.

The fund will invest in startups in areas such as esports, gaming and Web 3.0 and will also develop an accelerator programme as well as an esports studio.

Announced during Abu Dhabi Finance Week (ADFW), Dhawan's new fund targets first investments in the first quarter of 2023.

"I am excited to start a new venture and embark on this journey in venture capital," said Dhawan.

"One Global Ventures will go beyond traditional investment models and provide unprecedented access to the sports ecosystem around the world.

We are starting humbly, but aim to reach higher and aspire to set new benchmarks for leadership in venture capital, sports and technology.

I am very grateful to sport and look forward to the contribution of this fund to the growth of the sport as well as the economy."