My main takeaway so far this year…
Sports will be one of the best industries to build in over the next decade.
Why?
Because tech is no longer the moat…distribution, brand, and live interaction are.
And sports offers that at scale:
- Media – one of the last places for live eyeballs
- IP – brand and distribution will be greater than tech
- Entertainment – authentic interactions mixed with sports
- Participation – from youth to college to pro to adult rec, tech can’t replace activity
Let’s Go Deeper on H1 2025 ????
H1 2025 in Sports Business
The first half of the year was loaded with movement!
Here’s what stood out the most:
More Large Funds Targeting Minority Stakes
- Mark Cuban unveiled a $750 million sports fund.
- Dave Checketts, former MSG Sports CEO, announced a $1.2 billion fund.
- TPG (a $250B+ private equity giant) launched a $1.6 billion dedicated sports investment vehicle alongside Rory McIlroy.
They want to capture a small sliver of this…
I expect to see more announcements in this area over 2025, but we’ve likely reached the peak, as the scarcity of teams caps how many funds can operate here.
The Gap Largens in Early-Stage
I’ll keep iterating this until I’m blue in the face…
There are numerous groups deploying capital into sports now, but very few do so at the early stages (which can mean either directly or indirectly through funds).
This will create problems over time, as there are fewer capital onramps into sports.
So, why is this happening?
Three key challenges at the early stages of sports:
- Fragmentation
- Funds playing the AUM game
- Uncertainty around market sizes
Due to the reasons above – I expect the early stages to remain turbulent for founders through the end of the year.
We’re trying to narrow the gap with the Profluence platform, as there are other ways to build a company successfully beyond just raising capital.
College Sports is Unraveling (Quietly)
The House v. NCAA settlement is reshaping college sports economics: ~$2.8B in damages and revenue sharing for athletes ahead.
What’s the implication?
Schools are becoming semi-pro teams – with new budget structures, revenue models, and labor dynamics on the horizon.
Elevate Sports Ventures, a management consulting firm specializing in teams and leagues, has reportedly raised a $500 million fund to invest in the collegiate space, with the capital support of Velocity Capital Management.
The thing is…
Most college programs aren’t profitable, so expect funds in the space to be in the business of lending (not writing equity checks).
Miniaturized Sports Increasing
Unique versions of sports continue to pop up.
Think 3×3 basketball, simulator golf, condensed racquet sports, etc.
Five reasons why:
- lower barriers to entry
- internet is fragmenting
- new monetization avenues
- changing consumer behavior
- shifting league capital-raising models
I don’t see these miniaturized sports concepts slowing down anytime soon.
M&A Remains Strong
2024 was by far the strongest year in history for sports mergers and acquisitions (M&A).
Teamworks recently raised $235m in a Series F round. I expect them to make multiple acquisitions in the months to come.
2025 is off to a strong start in M&A – we will break this down further at the end of the year.
Several large funds are also entering the space, creating a need for those at earlier stages to consolidate entities to make these investments more attractive:
- Norwest Venture Partners (backers of Uber, Calm, & Opendoor) is interested in doing more deals within sports.
- General Atlantic ($100B AUM) expressed interest in doing more sports investments.
- RedBird Capital raised $4.7B in fresh capital and partnered with Weatherford Capital to take on college sports.
Interest in the growth stages of sports is at an all-time high.
Big Leagues Acting More Like Investors
MLB is showing this heavily so far this year…
- minority investment in Jomboy Media
- minority investment in Athletes Unlimited (softball)
It makes sense for leagues to invest capital in initiatives that they help drive forward…
This is why the NFL expanded its strategic partnership through the 2030 Super Bowl with Genius Sports (they are also the largest shareholder).
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What I’m Watching in H2 2025
It’s super important for anyone building in sports to keep an eye on these developments:
More Entertainment Mixing with Sports
The Super Bowl is watched by millions just for the:
- commercials
- halftime show
Other sports properties are starting to take advantage of this and launching concerts (or other entertainment options) around the main sporting event.
Whether you’re a tech company, investor, or league operator, I would start thinking about the opportunities here.
I will go deeper on this in a future piece.
The Venue Boom Will Accelerate
Every week, there’s a new stadium proposal in sports as the real estate playbook continues to expand.
Venues now double as tech-enabled fan hubs, live content studios, and multi-use developments.
Saudi, Abu Dhabi, and Singapore-backed funds are looking to co-develop venues globally.
Global Events Market = $958 Billion
????????%: Business Events
????????%: Sports
????????%: Music Concerts
????????%: Conferences
????????%: Festivals
????????%: Others
This will exceed $1 Trillion in 2026, largely due to sports.
Expect to see more sports-related events, infrastructure, and real estate headlines this year.
New Wave in Sports Health
There’s becoming an outsized emphasis on health and wellness among younger consumers.
This goes beyond aesthetics – it’s about optimizing performance and longevity.
- From wearables like Whoop and Oura Rings to personalized nutrition and glucose monitors, young consumers are investing heavily in their well-being.
- We’ve seen the rise of connected fitness platforms like Peloton, Tonal, and Mirror, blending technology with behavioral shifts toward self-care.
Sports and fitness brands are uniquely positioned to cater to this trend.
I think sports and health are going to start mixing more and more…this is a good space to be building in.
Youth Sports
2025 is already off to a fast start:
- IMG Academy acquired SportsRecruits
- GenStar/Bluestar acquiring Playmetrics
- Dick’s Sporting Goods Investment in Unrivaled Sports $120m round
Two key areas to watch:
- post-grad programs
- academies and facilities
Youth Sports undergo intense cycles of capital interest, and we still haven’t reached the peak of the current cycle.
I expect to see more and more announcements in this niche throughout the year.
Expansion, Globalization, & Tech Integrations
The NBA is exploring the creation of a new European league, while the NFL has expanded its Global Markets Program, adding new teams and markets, including Greece and the United Arab Emirates.
Expect global downstream expansion to continue while at the same time…
Expect the tech component of sports to continue improving:
- The NFL has integrated Sony’s Hawk-Eye cameras to revolutionize line-to-gain measurements, moving away from manual processes.
- Similarly, the MLB is testing an automated ball-strike system, known as Robo-Umps, to enhance umpiring accuracy.
- The NBA is set to launch a biomechanics program with motion capture labs across all teams, aiming to optimize player performance and reduce injuries.
Many of you are building technologies that can be implemented – keep going.
2025 is off to a great start across sports!
Have questions? Need assistance with something? Post them to the Profluence feed or attend office hours. We’ve built the platform to help!
