Brera Holdings highlights changing landscape of sports ownership

Brera Holdings (BREA) highlights the changing landscape of sports ownership that is attracting increased funding and fueling growth in professional sports.The company said, ” The sports ecosystem has experienced a vast transformation over the last decade. Investors today can not only engage with the sports landscape but also actively shape its evolution, with the emergence of sports-dedicated funds alongside private equity, sovereign wealth funds, and family offices.” Goldman Sachs’ “Changing the Game: Unlocking New Opportunities in Sports” from October 2024 identifies four investment categories – private equity, strategic investors, sovereign wealth funds, and ultra high-net-worth individuals and family offices. Taking a deeper dive” Private Equity: This sector is increasingly targeting leagues, attracted by their steady cash flows and media rights opportunities. Prominent firms like CVC Capital Partners and Silver Lake are capitalizing on prospects within major leagues such as La Liga, Serie A, Ligue 1, and the A-League. Multi-asset investors, such as Ares Management and Oaktree Capital, have also focused on credit investments. Strategic Investors: These organizations leverage their commercial brands through sponsorships at the league, team, and stadium levels, often pursuing complementary or sports-adjacent investments to bolster their existing assets. Sovereign Wealth Funds: With substantial capital reserves, funds such as the Public Investment Fund of Saudi Arabia and Mubadala Investment Company from the UAE are emerging as key players in the sports sector. Ultra-High-Net-Worth Individuals and Family Offices: Traditionally dominant in team ownership, these investors are increasingly building multi-sport platforms and exploring international ventures as the U.S. sports market becomes more saturated. The company said, ” The emergence of multi-club organizations-including Red Bull, Eagle Football, City Football Group, Qatar Sports Investments, and RedBird Capital-is also reshaping sports ownership. These groups aim to create synergies across multiple clubs through commercial initiatives and player trading transactions. In 2023, there were 38 multi-club ownership investments across professional soccer’s Big Five Leagues, reflecting a trend toward investing in emerging clubs rather than just established teams. According to the Report, the sports ecosystem has experienced considerable capital inflow over the past decade, yielding nearly 430% returns across various leagues and attracting a diverse array of investors. Major media companies like Apple TV, Amazon Prime, Netflix, Disney, and ESPN are securing rights and producing exclusive content, appealing to a new era of digitally-native fans who engage with sports across multiple platforms…As sports continue to captivate audiences, investment opportunities are abundant across various sectors. As stated in the Report, European clubs are modernizing their stadiums and enhancing matchday revenues, drawing inspiration from successful models in the United States. Notably, state-of-the-art facilities are being developed for teams like FC Barcelona, Real Madrid CF, and Tottenham Hotspur FC, significantly elevating the fan experience. Beyond stadiums, there are numerous revenue streams and investment opportunities in adjacent categories, including commercial sectors such as apparel, agencies, collectibles, gaming, and data; event day enhancements like stadium infrastructure, live events, and ticketing; as well as media initiatives encompassing streaming, digital content, e-sports, and fantasy sports. This multifaceted approach creates a dynamic landscape for investors seeking to capitalize on the evolving sports ecosystem.”