Picks & Shovels Sports Companies

Every day, there seems to be a launch of a new sports league.

And while a handful will go on to succeed…

This has attracted builders who see the need to help support them with technology.

Pick-and-shovel companies will breed massive wins in sports.

Let’s Dive In 👇

A Brief History of Picks & Shovels

The idea of “picks and shovels” comes from the California Gold Rush in the 1800s.

Thousands of people rushed west to dig for gold. A few struck it rich. Most walked away with nothing.

But the real winners?

They were the ones selling the supplies — the jeans, the picks, the shovels, the wagons, the saloons.

They didn’t care who found gold.

They just knew more people would keep coming…and all of them needed tools.

This strategy has played out repeatedly:

• In tech: AWS, Stripe, and Twilio built platforms powering thousands of startups.
• In crypto: Coinbase sold infrastructure to traders and projects.
• In e-commerce: Shopify helped others build their brands instead of competing with them.
• In AI: NVIDIA sells the chips, regardless of which app or model breaks out.

And now?

It’s happening in sports.

Here are some examples of companies executing on it (and a deeper dive into understanding “picks and shovels” within sports).

New Sports Leagues

I could give dozens of examples, but I’ll pick a few to illustrate my point:

• Women’s volleyball has 3+ leagues
• Soccer has hundreds of leagues and new formats
• Golf is seeing alternative formats and creator leagues
• Combat sports have seen many new leagues and formats like slapboxing

The reality is that there are only so many eyeballs and so much time for consumers to watch sports.

Most categories will see at least one winner, multiple losers, and some won’t see any make it all.

So the best way to hedge your bet if you don’t create or invest in a league is in the pick and shovel plays supporting them (it’s also a great diversification strategy).

Two Example Companies

The leagues themselves are betting on a singular project.

The pick and shovel companies are betting on the macro of sports, knowing that all the leagues will need tech (and aren’t well-capitalized enough to do it themselves).

Example companies:

1. ALT Sports Data
   An odds and data platform that gives emerging sports access to the betting market. It’s hard to gain visibility without data partners — and ALT helps bridge that gap.
2. Fastbreak AI
   A sports scheduling platform working with dozens of leagues to optimize season structure, reduce travel, and increase broadcast value. It’s a problem every league has — and one they can’t solve on their own.

These companies aren’t betting on one breakout league…

They’re bets on the macro trend: more alternative leagues, more need, more spend.

If one client folds?

It doesn’t matter — another five are onboarding. This is diversification, with built-in compounding.

Here’s what other pick-and-shovel companies are doing:

• Selling tech infrastructure → OTT platforms, wearable data, automated cameras
• Providing league operations → stat tracking, betting integrity
• Offering marketing muscle → Fan engagement, social growth, creator-driven media
• Running monetization rails → Sponsorship tools, ticketing, payment systems

Instead of betting on which league takes off, they’re building businesses that grow no matter who wins.

Why This Strategy Works

The “league” model is fragile, while the “support the leagues” model is antifragile.

Here’s why:

• Diversified upside → Dozens of small contracts vs. one big swing
• Standardization edge → Every new client makes onboarding easier
• Acquisition potential → Infrastructure players are prime targets for exits
• Data flywheels → The more leagues they serve, the better their product gets

It’s the sports version of Amazon Web Services (AWS).

Quietly powering everyone from startups to giants — and compounding as the entire ecosystem grows.

What to Watch Next

We’re already seeing the early signs of where this goes next:

• Founders building tools for leagues, not leagues themselves
• Leagues offering equity to infra partners in exchange for help
• Investors favoring B2B sports tech over fan-facing brands
• The emergence of a true operating system for modern sports

Some people want to own the next PFL (and for those ambitious enough, it could reap massive results).

Then, some are building the tools that the PFL and hundreds of others need to survive.

Exciting times are ahead — no matter if you’re building the league or a pick-and-shovel startup.