Latest news with #sportsinvestment
Argaam
3 days ago
- Business
- Argaam
Saudi Arabia seeks to privatize stadiums: Official
Basim Ibrahim, Sport Sector Investment Development Director, the Ministry of Investment, said there are distinctive investment opportunities managed by the Ministry of Sports in the Kingdom. This includes offering sports stadiums to the private sector for management and commercial operation. Thus, the stadiums would turn entirely into a commercial project, not only intended for hosting sports matches. In an interview with Asharq, Ibrahim confirmed that the Ministries of Sports and Investment are working on privatizing sports clubs. He added that eight clubs were already privatized in the first phase, and 14 others will be offered for privatization in the second phase. The remaining clubs will also be privatized in other phases. There is still a focus on specialized sectors in the investment field, including sports medicine, sports manufacturing, and sports technology, Ibrahim said. He added that investors are being assured that this is the ideal time to enter the Saudi market and seize other opportunities such as attracting sports academies, gyms, and sports tourism.
New York Times
5 days ago
- Business
- New York Times
Red Bull Italy SailGP team acquired by Grazioli-Venier's Muse Sport consortium
A consortium partially led by Muse Capital founding partner Assia Grazioli-Venier has acquired the Red Bull Italy SailGP team. Known for backing consumer technology companies, women's health and women's sports, Grazioli-Venier is setting sail with a team valued at $45 million through her sports advisory arm, Muse Sport. Advertisement The acquisition marks a first for the global racing championship, establishing Red Bull Italy as the first SailGP team with a female-led ownership group. Grazioli-Venier has partnered with luxury brand entrepreneur Gian Luca Passi de Preposulo, who will serve as chairman of the board, and two-time America's Cup winner Jimmy Spithill, who joins as co-owner and CEO to lead the consortium. The investor group features an impressive roster of sports industry leaders and seasoned professionals, including Alexander Gilkes, Heather Karatz, Peter Delgrosso and Dr Jennifer Ashton, as well as Hollywood's own Anne Hathaway. The team is valued at $45 million. 'I've made a career of being ahead of the curve of trends the last two decades, and have a knack for spotting talent and identifying things before most people — from streaming 20 years ago to women's healthcare nine years ago,' Grazioli-Venier told The Athletic. After establishing Muse Sport, Grazioli-Venier was an early investor in the emerging sports and women's sports boom, buying a stake in Washington Spirit in 2021 when Michele Kang was a minority investor. She also invested in Miami Pickleball, and Haley Rosen's media platform Just Women's Sports. More recently, she became chair of the board of the Women's Pro Baseball League (WPBL). Grazioli-Venier's father competed in the inaugural Whitbread Race in 1973 (now known as the Ocean Race) and first came across the United States SailGP team when it came up for sale two years ago. She was not immediately interested. 'But then, as soon as I looked under the hood, I realized it was completely the opposite. This is not our grandfather sailing, or even my own father's sailing. This is not even sailing. It's foiling. 'Commercially sustainable, global, all year round, exhilarating, digital and experiential and with core values that aligned with ours at Muse — men and women on the same team through the Women's Pathway programme, and climate sustainability as 'powered by nature'.' Advertisement After investing in November 2023, Grazioli-Venier hailed the sport's dedication to diversity and is now in the process of selling her minority stake in the U.S. team. Founded by Larry Ellison, a tech entrepreneur and one of the richest men in the world, SailGP features 12 identical F50 catamarans competing in high-speed, two-day events around the world. Across its first four seasons, SailGP grew from six teams and five events to 12 teams and 12 events. The league's co-founders, Ellison and five-time America's Cup winner Russell Coutts, were the original majority owners of SailGP, but with Red Bull Italy team's acquisition, 10 of 12 teams on the start-line are now privately funded, with future boats joining the league all independently owned and financed. Two years ago, SailGP was selling teams between $5 million and $10 million. Last year, former Milwaukee Bucks owner Marc Lasry led a group of investors and acquired the US team for $35 million, the largest sale at the time. In March, Real Madrid superstar Kylian Mbappe bought a stake in the France SailGP team. The league is founded on a few core principles: a cost cap and shared technology across all teams. 'It's a commercially sound, sustainable business model, which is very rare in sports, especially in racing,' Grazioli-Venier says. 'The fact that you could break even by year two, and potentially pay dividends to investors, is almost unheard of. Most sports teams burn through cash and rely on capital injections. This model flips that script, it's sustainable and smart, and that's why it is very interesting to me.' SailGP is also the only professional sports league where women and men are fully integrated, competing together on teams. For Grazioli-Venier, it was also important that the league increased gender equity in sailing by accelerating the training and development of female athletes. Since the launch of the 'Women's Pathway' in 2021, female athletes have been on board all F50 boats in every SailGP race. Advertisement On the commercial side, with Red Bull as title partner, Red Bull Italy's ambition is to become one of the most innovative and brand-driven presences in the championship. Grazioli-Venier explains that their 'Made in Italy' consortium blends expertise and cutting-edge technology, but culturally resonant storytelling and top-class entertainment. 'Partnering with Gian Luca Passi de Preposulo, who brings extensive experience in luxury brands, was an essential component for making this a successful endeavor,' she says. SailGP has grown its audience in the U.S. since its inaugural season in 2019. This season, CBS featured 54 hours of SailGP across its networks. The league said last season that 1.78 million tuned into November's Spain Sail GP on CBS, the largest linear TV audience in the U.S. for any race on water in 30 years, including the Olympics and America's Cup. This season, the 2025 KPMG Australia Sail Grand Prix in Sydney delivered the league's largest global TV audience, reaching 21.1 million viewers worldwide: 'It's always been a digital-first product as well as a broadcast-first product as well as an experiential product,' Grazioli-Venier says. 'They've essentially mastered every aspect of fan engagement — wherever the audience is, they're there. And Larry's working on exciting innovations to elevate the experience even further.'
CNN
6 days ago
- Business
- CNN
Ohanian discusses minority stake in Chelsea women's team
CNN World Sport's Don Riddell speaks with Reddit co-founder Alexis Ohanian about his latest investment and why the entrepreneur believes Chelsea could become the first billion-dollar franchise in women's sports.
CNN
6 days ago
- Business
- CNN
Ohanian discusses minority stake in Chelsea women's team
CNN World Sport's Don Riddell speaks with Reddit co-founder Alexis Ohanian about his latest investment and why the entrepreneur believes Chelsea could become the first billion-dollar franchise in women's sports.
Forbes
24-05-2025
- Business
- Forbes
Why Climate Risk Is A Threat To The Sports Investment Boom
NEW YORK, NEW YORK - JUNE 06: General view of hazy conditions resulting from Canadian wildfires as ... More Anthony Rizzo #48 of the New York Yankees jogs to the dugout during the second inning against the Chicago White Sox at Yankee Stadium on June 06, 2023 in the Bronx borough of New York City. (Photo by) As sport transforms into a dynamic and lucrative asset class, the environmental crisis is accelerating. Savvy sports investors are increasingly factoring in growing climate risks, recognizing their potential to disrupt operations and erode returns. The global appeal of sport, lucrative media rights, and the potential for substantial returns is attracting private equity firms, sovereign wealth funds, institutional investors, celebrities and athletes. No longer just "trophy assets," men's and women's sports now present viable investment opportunities. Even with economic headwinds, investors are bullish on sports. Mark Cuban, Rashaun Williams, and Steve Cannon have launched a sports-focused private equity fund, looking to raise $750 million to target minority investments in NBA, MLB, and NFL teams. Rory McIlroy has teamed up with TPG to launch a sports investment fund, and Standard Chartered have launched a fund focused on sports for high net worth clients. These are just announcements from the past several weeks. DALLAS, TEXAS - APRIL 11: Mark Cuban reacts after the Dallas Mavericks score during the first half ... More against the Toronto Raptors at American Airlines Center on April 11, 2025 in Dallas, Texas. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by) Financial prospects are enticing, but the escalating climate crisis creates risk for sport investments. By 2050, corporate exposure to climate risks is expected to triple, putting more than $1.14 trillion in market value at risk for companies on the world's largest stock exchanges. This includes sports organizations, which are particularly vulnerable due to their reliance on physical infrastructure and scheduled events. Investors in sport need to 'consider how exposed their investment portfolios are to physical climate risks," confirms Daniel Keir, climate resilience specialist at Zurich Resilience Solutions. Hazards differ according to geography, but include flooding, wildfires, extreme heat, storm surges, and other severe weather events. NFL stadiums could face an estimated $11 billion in climate-related losses by 2050. TOPSHOT - A panoramic view shows the Imola racetrack on May 18, 2023 after heavy rains caused ... More flooding across Italy's northern Emilia Romagna region, killing nine people. The flooding caused the cancellation of Sunday's Formula One Emilia Romagna Grand Prix scheduled in Imola, with organisers saying they could not guarantee the safety of fans, teams and staff. (Photo by STRINGER / AFP) (Photo by STRINGER/AFP via Getty Images) As well as physical threats to infrastructure, such as extreme weather causing roofs to come off stadiums, or golf courses disappearing due to coastal erosion, sports face additional financial risks stemming from the climate crisis. Organisers may face rising insurance premiums and revenue disruption from ticketing, sponsorship or broadcast if events are cancelled or altered. If values aren't aligned, revenue can be missed from potential sponsors with a strong sustainability ethos, and conversely, partnering with unethical or polluting organisations can cause reputational risks. QUEENS, NEW YORK, UNITED STATES - 2023/04/07: Participants seen holding a banner at the protest. ... More Mets fans and climate activists targeted the Mets' opening day to send a strong message about climate change and the teams sponsors role in it. After the third inning, activists dropped one large banner that read Mets Drop Citi. (Photo by Erik McGregor/LightRocket via Getty Images) It's worth noting that direct climate impacts on a stadium can have broader investment ramifications too. 'Stadiums often act as economic anchors and catalysts for broader urban development," Austin Clack, Climate X's physical risk solutions lead for North America told me. 'Climate risks that endanger these assets can reduce investor confidence and stall development plans in the surrounding area, leading to stranded project investment and overall lowered investment inflow into communities.' Despite growing awareness and risk, these considerations are not yet central to all investment decisions in the sports sector. 'If the internal rate of return doesn't stack up, ESG won't save the deal and if the IRR is strong but there are climate risks, the investment can still go ahead,' Michael Broughton, founder of Sports Investment Partners LLP told me. Climate risks may currently only filter as a priority for investors when they create the potential for a tangible impact on forecasted cash flow, but they are a consideration. The United Nations-supported Principles for Responsible Investment encourage investors to always incorporate ESG issues into investment analysis and decision-making processes. This photograph shows a view of a building of the SK Moelingen football club surrounded by water ... More after heavy rain in Fourons-Voeren on May 18, 2024. The Liege region in eastern Belgium was hit by flooding, with some 550 requests for assistance recorded on May 17, 2024, night, in the province of Liege, and 150 firefighters mobilized, caused by torrential rain, also hitting France and Germany. (Photo by BRUNO FAHY / Belga / AFP) / Belgium OUT (Photo by BRUNO FAHY/Belga/AFP via Getty Images) Climate risks are likely to be a larger consideration for investment in smaller sports clubs, where a more direct line can be drawn between issues such as flooding and core revenue drivers such as match-day viability and income. It's not only financial risk, which naturally sits at the heart of investments, that needs to be considered. Reputational risk carries greater weight in sports due to heightened media attention and public scrutiny. This includes 'changing consumer preferences regarding transparency and ethical behaviour,' says Philip Cronje, business unit manager of Aon South Africa's sports, recreation and entertainment division. Beyond mitigating risk, climate action presents a commercial upside for investors. There is a lot of opportunity for fan and sponsor engagement on this topic. Broughton believes 'the fan comes first,' and that a better understanding of fans leads to better business outcomes. With sports fans increasingly engaging on climate issues, climate-positive initiatives can enhance the appeal of a sports organisation seeking investment. Sustainability is a strong selling point as part of a pitch. It enhances the story even if it's not the core proposition. The integration of climate risk and ESG considerations into sports investments is evolving rapidly. As the financial implications of climate change become increasingly apparent, investors are likely to place greater emphasis on sustainability, and look more intently at risk. Although climate risk or sustainability may not yet be deal breakers in many sports investments, investors should consistently engage on these issues when considering any opportunity in the sector. Aligning investment strategies with this engagement will not just safeguard and future-proof assets, but also unlock upsides through fan trust and sponsorship appeal. In the melting pot of an evolving sports investment landscape and accelerating climate crisis, prioritizing climate risk and sustainability isn't just a tick-box exercise. It is a strategic imperative that is fundamental for success. Austin Clack sums it up well, saying 'investors should recognize that climate risk is not a distant concern but an imminent financial reality that must be factored into investment strategies immediately."
