Sportico hosted its Invest in Sports conference on finance and opportunity at The Times Center in New York City on Wednesday, featuring high-profile team owners, executives, moguls and athletes who unpacked the best opportunities to transform the industry and capture the greatest returns.
Here’s a recap of some of the conference highlights:
Business of the Yankees: Chairperson Hal Steinbrenner and President Randy Levine
After the Yankees’ most disappointing season since 1992, Steinbrenner said he isn’t selling the New York Yankees, despite some fans’ pleas. The managing general partner said during the “Business of the Yankees” session that he plans to keep it in the family; his niece and a trio of nephews are already involved in team decision-making.
In the meantime, he’s focused on a variety of on-field and off-field initiatives, including reeling in Gen-Zers to be the next generation of Yankees fans.
“They have so much different content that they consume, between sports and non-sports, so we’re really focusing a concerted effort into YES [Network] try to get them into baseball, watching the Yankees, and most importantly and most difficulty, keeping them,” he said.
Fireside Chat: Monumental Sports and Entertainment CEO Ted Leonsis
Leonsis, who recently purchased regional sports network NBC Sports Washington, now renamed Monumental Sports Network, believes in the power of bundling as a way to provide several direct offerings to consumers. During his fireside chat, the former America Online senior executive used Uber (NYSE: UBER) as a prime example, since the tech company now provides far more than just ride-hailing services. He wants to offer a one-stop shop for his fans.
“I think that there’s a lot of upside in bundling, and I want to put parking in there,” he said. “We want to put food services in there. We want to put a whole bunch of other things that are central in our city as a part of that because if you want to be the most important team, most important company you need to be able to be central to the way people live their lives.”
Building a Growing Portfolio: Harris Blitzer Sports & Entertainment co-managing partner David Blitzer, RedBird Capital Partners founder Gerry Cardinale and Arctos Sports Partners managing partner David ‘Doc’ O’Connor
Arctos Sports Partners, a private equity platform, has been a trailblazer when it comes to investing in pro sports as institutional investment is now welcome in MLB, NHL, MLS and NBA. Notably absent from that list if the NFL; O’Connor stopped short of offering his elevator pitch to the league but offered what PE could give to the league.
“An increase in liquidity creates incredible opportunities for innovation,” he said. “The North American sports ecosystem has been incredibly inefficient over the years, which is one of the catalysts for some leagues opening to institutional capital. We’re in the very early innings… You’re only going to see greater liquidity across the leagues that are already open.”
The Financial Rocketship of Women’s Sports: National Womens Soccer League commissioner Jessica Berman, Monarch Collective co-founder Jasmine Robinson and Katlyn Gao, CEO of League One Volleyball
There’s an unprecedented amount of growth across the women’s sports landscape from leagues and teams while new investment firms like Monarch Collective are doubling down on the trajectory. Berman, who took over her post last year, is witnessing this firsthand as she leads a new era for the NWSL.
“You build for the future and get your owners aligned around being long-term greedy, which is something I’ve talked a lot about,” she said. “You have to recognize that it’s better to take a little bit longer and do it right then to get there quicker and have it be fragile.”
Closing Conversation: New York Mets owner Steve Cohen
Despite being a lifelong New York Mets fan, Cohen was hesitant to take the reins of the club he cheered for as a kid growing up on Long Island. The billionaire hedge fund manager nonetheless ponied up the $2.4 billion in 2020 and has spent the last three years understanding the “nuance” of owning a club.
“I felt like [the team] was an unpolished gem, and if I could turn this sucker around, it would be really cool,” Cohen said. “I’ve had one good season, and this year didn’t pan out the way we hoped. It’s still brick by brick… There’s a lot of good things going on [behind the scenes] that’ll pay off down the road.”
- Two-time Super Bowl champion Justin Tuck, now a Goldman Sachs Private Wealth Management managing director, spoke about his transition from locker room to boardroom.
- ONE championship co-founder Hua Fung Teh touched on the promising future of mixed martial arts, among other things.
- Isos Capital founder George Barrios and Dynasty Equity CEO Don Cornwell spoke about the role that private equity plays across the sports landscape.
- Allen & Company managing director Steve Greenberg and The Raine Group partner Colin Neville talked banking’s biggest deals and transactions with Rich Raffetto, president of City National Bank.
- Cleveland Browns principal partner Jimmy Haslam and Jon Ledecky, co-owner of the New York Islanders, provided insights into the mindsets of pro sports team owners.
- Atlanta Hawks co-owner Grant Hill, National Basketball Players Association executive director Tamika Tremaglio, Premier Lacrosse League co-founder Paul Rabil and Meta director of sports partnerships Evan Shugerman discussed the new wave of pro athletes becoming bona fide entrepreneurs and investors in sports-related properties in a conversation moderated by City National Bank’s Todd Burach.
At the close of the event, Next League introduced its new chief commercial officer, Roland Lange, who will be responsible for creating and executing commercial strategies aimed at accelerating the growth of the overall business.
