Commonwealth Sports Ventures into Athlete Investment

After celebrating significant success with the crowdfunded racehorse Mage at last year’s Kentucky Derby, Commonwealth Sports is now setting its sights on the sports of golf and tennis. The company plans to offer shares in the future winnings of athletes within these sports.

Commonwealth is set to announce a $4.5 million venture capital injection this Thursday. The funding round is led by tech-focused Social Leverage, along with Eberg Capital and ex-NFL star Larry Fitzgerald Jr., among others. The company is also poised to announce its acquisition of ALAO Invest, a regulatory-approved crowdfunding platform.

Commonwealth Sports Ventures into Athlete InvestmentThe firm’s strategy involves providing financial support to emerging athletes, allowing them to compete while investors gain a share of their future earnings. Last year, golfers Cooper Dossey and Joey Vrzich received backing, with each having a public offering aimed at raising up to $262,000 to cover competition-related expenses. In return, these athletes, with less than three years of professional experience post-college, will return a portion of their earnings over a six-year period.

Brian Doxtator, co-founder of Commonwealth, described the company’s business model in a recent interview, highlighting its origins in horse racing and subsequent expansion into other sports thanks to advancements in their technology platform.

Starting in 2019 with fractional racehorse ownership, Commonwealth found success not only with Mage but also with Country Grammar, the highest-earning racehorse of 2022. The innovative approach allowed hundreds of small investors to achieve substantial returns on their investments.

While athlete investment schemes have had mixed results in the past, Commonwealth believes its technology and balanced equity approach between athletes and investors will enable the model to flourish. Roger Ehrenberg, founder of Eberg, echoed this sentiment, emphasizing the unique connection between athletes and fans that their platform fosters.

With the integration of ALAO, Commonwealth is preparing to expand its offerings significantly, planning to sign numerous athletes across golf, tennis, and team sports, while continuing its involvement in horse racing.

In addition to competition funding, Commonwealth offers athletes flexible terms, including buy-out options, ensuring a fair and sustainable partnership. The company’s commitment to creating a genuine community of sports enthusiasts and investors aims to transform how fans engage with sports, making the investment experience both enjoyable and potentially profitable.

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