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Goldman Sachs Exchanges

Investing in Sports: A New Media Model

Nov 22, 2024
Dave Dase, Global Co-Head of Sports Investment Banking, and Gene Sykes, Co-Chair of Mergers and Acquisitions, dive into the shifting tides of sports media. They explore the staggering valuations of sports teams and the fierce competition between traditional broadcasters and tech giants for premium content. The conversation highlights how athletes are leveraging social media to create personal brands and drive social issues. Also on the table is the excitement surrounding the 2028 LA Olympics and the role of technology in transforming fan engagement.
27:51

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Podcast summary created with Snipd AI

Quick takeaways

  • The valuation of sports teams is increasingly linked to lucrative media rights deals, showcasing the competition between legacy broadcasters and tech platforms.
  • Technological advancements and direct-to-consumer models are reshaping sports engagement, emphasizing personalized content consumption and new marketing strategies.

Deep dives

The Surge of Media Rights Deals

The valuation of sports teams has increasingly hinged on lucrative media rights deals, epitomized by the recent NBA agreement worth $76 billion over 11 years. This monumental deal highlights a significant shift within the sports media landscape, where tech platforms are stepping in while traditional broadcasters are facing heightened competition. Companies with advanced distribution capabilities are eager to capitalize on the demand for live sports content, which remains exceptionally high despite the increase in streaming subscriptions. As advertisers seek access to aggregated audiences, they are prepared to invest substantial amounts to reach fans, which further underscores the escalating importance of media rights in shaping team valuations.

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