Unlocking Wealth: How Ultra-Rich Families Strategically Invest in Sports, from Major Leagues to Exclusive Social Clubs

While the ultra-wealthy are investing less in startups, they’re diving deeper into sports. A recent survey from Goldman Sachs reveals that 25% of family offices have put money into sports or related areas like ticket sales and venues. Another quarter have their eyes on potential investments in this area.

For example, Julia Koch and her family just bought a minority stake in the NFL’s New York Giants. Similarly, billionaire Mark Walter acquired a majority stake in the Los Angeles Lakers, valued at a whopping $10 billion. In a different move, several Bay Area families, including venture capitalist Vinod Khosla, purchased a 6% stake in the San Francisco 49ers.

Despite this enthusiasm, there’s a noticeable gap in interest for women’s leagues and newer sports like pickleball. The Goldman Sachs survey showed that only 19% of family offices invested in women’s established leagues, and an even smaller 16% expressed interest in women’s emerging leagues or men’s minor leagues. In contrast, 71% favored major men’s leagues.

There are notable examples of investors backing women’s sports, with some billionaire investors securing new WNBA franchises recently. These investors seem to be looking for long-term growth rather than immediate cash flow.

According to Meena Flynn from Goldman Sachs, family offices can afford to take a patient approach to owning sports teams. She suggests this involves both passion and the promise of long-term value. Flynn also points out that sports investments can act as a hedge against inflation since they generate revenue from various sources, like streaming and ticket sales.

Moreover, sports owners are expanding their portfolios by investing in related sectors. For instance, David Blitzer from Blackstone is the first person to hold equity in all five major U.S. men’s sports leagues. His family office, Bolt Ventures, has also invested in businesses like Fantasy Life, a sports betting media firm, and Padel Haus, a social club chain for racket sports.

This shift in investment strategies highlights not just a financial trend but also an evolving landscape in sports, where long-term vision and a passion for the game collide. It’s a fascinating blend of finance and fandom that’s reshaping how wealth is managed in the sports world.



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