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Boehly and executives share growth insights at ‘Invest in Sports’ event

One of the realities of trying to invest in a sports team: you can’t tinker every day. Just ask Todd Boehly, minority owner of the Los Angeles Lakers and Dodgers and president of Eldridge.

Speaking as part of SporticoLive’s ‘Investing in Sports’ summit, which will stream online starting Thursday at noon ET, Boehly says professional sports is unlike any other business – humbling because you can do it all correctly and fail, but exciting because there are no guarantees. Some might say the same for investing in the industry, which continues to see new waves of capital and growth opportunities.

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“Winning is precious,” said Boehly, who joined Sports Industry Group’s Chuck Baker for a panel discussion titled “Nurturing Global Sports Brands,” moderated by Sportico Managing Editor Scott Soshnick. “Once you start earning more, and with consistency, you will have more opportunities for equity and brand associations.”

These associations and relationships are more imperative than ever as the landscape experiences a historic explosion of new capital across franchises, leagues and infrastructure. Despite the financial fallout from the pandemic, there has been an unparalleled collection of offers. The latest investment class includes a slew of new names including athletes, celebrities and media moguls.

But perhaps the most interesting wrinkle has been the rise of private equity funding, with several sports and physical education examples coming together, like Elysian Park Ventures and the Dodgers.

Arctos Sports Partners, a sports private equity fund, is also a leader in the space, with stakes in the Golden State Warriors, Sacramento Kings and Fenway Sports Group (parent of the Boston Red Sox, Liverpool FC and Roush Racing). Ian Charles, founder and managing partner of Arctos, says it takes unconventional thinking, coupled with a change in league regulations, to see these investments grow to the highest possible level, which in turn does even more. increase the valuations of sports franchises.

“There’s so much potential for growth in this ecosystem today,” said Charles, who joined Arctos co-founder David O’Connor for a panel discussion titled “Private Investments in Sports professional”, facilitated by Sportico’s Brendan Coffey. “The provision of growth capital can help these assets realize their growth potential, which can sometimes be limited by internally financed growth.”

Some of the current trends in sports investing are probably here to tell. Allen & Co chief executive Steve Greenberg said there is a new market for sponsors, from institutions to wealthy families, which he says is in its infancy. Greenberg added that pent-up demand has factored in some recent sales, with similar offers likely stabilizing after 2022.

Either way, the rise of private sector and big business investment has impressed even the most seasoned sports bankers.

“I’ve seen a flood of new capital flow into the industry that historically never thought of investing in sports assets,” Raine Group partner Colin Neville told a Bankers Roundtable. “, moderated by Sportico’s Eben Novy-Williams. “So it’s definitely going to get more competitive, but as always, the cream is rising to the top.”

A range of topics were discussed at the summit, from what prompted Arctos to be aggressive in buying limited stakes in franchises, to how e-commerce mogul Marc Lore and Alex Rodriguez secured ownership. Minnesota Timberwolves and Minnesota Lynx of the WNBA.

“Sometimes the best trading strategy is to not trade at all,” Lore said.