The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: How a Angel City Makes $31M per Season | How Sports Teams Can and Should Be Better Businesses | Why Every Sports Team Will Look Like a Media Agency and Founding The Most Valuable Women's Sports Team with Alexis Ohanian

Aug 7, 2024

Alexis Ohanian, founder of the venture capital firm Seven Seven Six and co-founder of Reddit, dives into the financial dynamics of Angel City Football Team, revealing its impressive $31M revenue. He discusses unique sponsorships, the costs of running sports teams, and the current state of sports asset valuations. Ohanian also reflects on the evolving role of women's soccer and the integration of technology in team operations. The conversation highlights the future of sports as media-driven businesses and the importance of community engagement.

01:13:14

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Alexis Ohanian

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Quick takeaways

Alexis Ohanian emphasizes the necessity of leveraging star athletes and marketing strategies to shift the perception of women's sports towards profitable business ventures.

The podcast discusses how women's sports must renegotiate media rights and enhance revenue strategies to secure better funding opportunities historically dominated by male sports.

Ohanian advocates for a tech-first approach in sports management, suggesting that leveraging technology can streamline operations, enhance fan engagement, and maximize revenue.

Deep dives

The Rise of Women's Sports Ownership

The conversation highlights the growing interest and investment in women's sports, particularly women's soccer. Alexis Ohanian's journey into sports ownership began when he noticed the undervaluation of women's teams, prompting him to invest in the NWSL after a tweet inspired by the low sale price of a team. His vision focused on harnessing the potential for growth by enhancing marketing strategies and leveraging star players like Megan Rapinoe. This mindset reflects a shift in the perception of women's sports from charitable endeavors to valuable business ventures.

Intro

2min

The Rise of Women's Soccer Ownership

8min

Navigating the Intersection of Sports and Startup Dynamics

4min

Building a Sports Brand from the Ground Up

6min

Financial Futures in Women's Sports

22min

Revolutionizing Sports Team Operations Through Software and Culture

2min

Navigating Capital and Control in Sports Team Management

2min

Valuations and Innovations in Sports

17min

Sweet Success and Athletic Passion

6min

10.

Reflections on Time Management and Personal Values

5min

Alexis Ohanian is the Founder and General Partner of Seven Seven Six, an early-stage venture capital firm with $970M AUM. Prior to 776, Alexis was the Co-Founder of Initialized, one of the most successful early-stage firms in history with their first fund returning 56x DPI. Before Initialized, Alexis was a Partner at the world-famous Y Combinator and before that was one of the Co-Founders of Reddit.

In Today's Discussion with Alexis Ohanian We Touch On:

1. $31M in Revenue: The P&L of a Sports Team:

What are the core revenue drivers for Angel City Football Team?
How did Alexis convince Tony @ Doordash to write the largest-ever brand sponsorship check to have the Doordash name on the Angel City shirt?
How much money does Angel City make from ticket sales per year?
What does the revenue from merchandise look like for Angel City? How has it changed with time?

2. How to Spend $31M Annually To Run a Team:

What are the single biggest costs in running a sports team?
Does Alexis believe that salary caps are good or bad for leagues?
How much money is spent by clubs on content and software today? How should that change?

3. More Cash in Sports Than Ever:

Prices for teams are at an all-time high. Are we in a bubble for sports assets?
What remains under-priced and what is over-priced today?
What are the pros and cons of private equity entering sports ownership in a meaningful way?
Who is the worst sports team owner who despite his mismanagement, still made billions?

4. Alexis Ohanian: AMA:

How did Alexis and Serena William's children become millionaires through sports team ownership?
How did Alexis turn a $10,000 check into $17.1M?
How did a $10,000 check into a shoe company make Alexis $7M?
Why does Alexis believe that sports becomes even more valuable in a world of AI?

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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: How a Angel City Makes $31M per Season | How Sports Teams Can and Should Be Better Businesses | Why Every Sports Team Will Look Like a Media Agency and Founding The Most Valuable Women's Sports Team with Alexis Ohanian

Episode guests