Goldman Sachs Exchanges Investing in Sports: The Next Trillion Dollar Market?
4 snips
Nov 15, 2024 
In this engaging discussion, Josh Harris, co-founder of Apollo Global Management and a notable sports franchise owner, shares insights on the surge of institutional investors in professional sports. Dave Dase and Elis Jones from Goldman Sachs delve into the booming sports investment landscape, emphasizing the rising media rights and potential in women's sports. They also explore how Formula One's transformation into an entertainment juggernaut boosts its visibility. The emotional and financial aspects of sports investments are highlighted, showcasing the unique blend of passion and profit.
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Sports Market Reach
- Sports has a global addressable market, with growing distribution networks through technology.
- Its importance was highlighted during COVID-19 as a non-cyclical, high-revenue industry.
Sports Investment Appeal
- Institutional investors are drawn to sports due to uncorrelated returns, long-duration assets, and strong league governance.
- Scarcity, aggressive revenue growth, and the potential for capitalization changes also contribute.
European Sports Ownership
- European sports have a more diverse ownership structure than North America, including ultra-high-net-worth individuals, sovereign wealth funds, and institutional capital.
- However, not all European sports businesses generate free cash flow, leading to greater valuation differences.