Sports Industry Expert Panel
The event featured a distinguished panel of experts in sports and entertainment, including:
- Kelsey Thomas—Senior Manager, Withum
- Kurt Schneider—Executive Chair and Founder, Field Level Advisory Group
- Jessie Sarkis—Associate Counsel, National Football League
- Rob O’Neel—Chief Investment Officer, ai.io
- Matt Laporta—Partner, True Up Capital
- Chris Keyes—General Manager, Cheddr
- Tracy Deforge—Chief Executive Officer and Founder, The Players Impact
Sports Industry Capital Flow
The event started with a discussion on capital flows in the sports industry, with panelists noting how sports-related investments differ from traditional private equity, particularly in how success is measured through cash flow rather than EBITDA. Investment opportunities continue to emerge in real estate development companies that support the sports industry, including both permanent and temporary stadium construction. There has also been a shift in how universities manage their athletic programs in light of new NCAA regulations and the need to professionalize their brands. Universities have increasing potential to leverage their intellectual property and fan bases to generate revenue through various content and engagement strategies. Additionally, new investment opportunities are emerging in existing sports leagues, such as the WNBA, as well as new sports leagues, such as flag football and cricket.
Growth in the Next Era of Sports
The sports ecosystem is unlocking new avenues for growth, driven by fans, athletes, investors, and the founders building what comes next. The NFL’s consumer products and gaming division generates over $1 billion annually through licensing deals with companies such as Nike and Fanatics. Sports leagues and teams are expanding their merchandising efforts through partnerships with fashion brands, and these co-branding initiatives have been well received, as evidenced by the success and popularity of the NFL Nike “Rivalries” uniforms, which celebrate each city’s identity and culture, among other co-branding efforts. Furthermore, international growth strategies are gaining momentum, with a focus on targeted marketing in specific regions to build global fandom across various leagues and sports.
Athletes are increasingly entering the investment arena, gaining access to early-stage opportunities and equity. There has been a shift away from focusing solely on high-profile investors toward recognizing the value athletes bring through their insights, expertise, and ability to leverage their popularity and social media following. Current trends suggest that athletes will continue to enter the venture capital space as early-stage investors.
There has been rapid growth in sports betting and online gambling, with the US sports betting industry generating approximately $170 billion in regulated gaming revenue last year alone, with in-game betting accounting for 50% to 60% of those wagers. Industry trends suggest that sports betting and online gambling will only continue to grow, driven by advances in technology and the widespread global reach of the sports industry.
The Future of Sports—Institutions, Athletes, and Emerging Models
Technology integration is creating fresh opportunities for the future of sports that would not have been imaginable just a few years ago. Continued innovations in technology are shaping the way institutions operate, how athletes are discovered, and the new models taking hold in the sports industry and its related investments. Technology is transforming scouting and talent development, where mobile-first data access is revolutionizing the ability to discover and sign athletes. For example, ai.io has developed a mobile platform that digitizes athletic drills, enabling scouts to evaluate athletes worldwide. This technology is giving exposure to athletes who would otherwise go unseen, increasing the competitive landscape and providing broader global outreach. Traditionally, scouting required extensive travel to evaluate hundreds of prospects; modern technology now achieves the same results in a fraction of the time and cost.
The developing sports market has seen significant changes in youth and collegiate sports, particularly regarding player classification, athletes extending their college stays, and the impact of NIL (Name, Image, and Likeness) on athlete opportunities. Youth sports continue to grow, expanding into new markets and new disciplines. Fan engagement remains a key driver of success in the sports industry, with an ongoing emphasis on emotional connection, whether from parents engaging with youth sports or from the dedicated fandom of collegiate and professional teams.
Investors in the sports industry should carefully analyze revenue streams and governance structures in sports-related transactions and investments, with particular attention to data and the consumption habits of new generations. The continued evolution of the sports industry represents an exciting time for fans, athletes, and investors to engage in both traditional and innovative ways.
