Many experts believe that sports franchise ownership has entered a new era where teams and leagues are run as disciplined entrepreneurial businesses. As a result, more investors are entering the sports industry, attracted to the disproportionate annualized returns available in sports, with limited relative downside risk.
Sports represent a significant uncorrelated diversification opportunity for a portfolio, but investing discipline is critical to achieve favorable risk-adjusted returns.
Opportunities in sports investment are not limited to teams and leagues, but also include streaming video, wearables, AR, VR, crypto and web3, collectibles, gaming, and the rise of sports betting.