WEBVTT

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How has sports morphed into
one of the most compelling

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institutional-grade asset classes
in the world?

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In 2011,

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the sports industry on a combined
basis was worth about $500 billion.

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Today, we’re looking at a
$2.5 trillion industry.

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What once started as a passion project, a vanity project,

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an interesting project to own,

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has morphed now

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into an institutional-grade
asset class

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that we are finding all over
the world is attractive to investors.

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In the US, that asset class
has compounded

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13% annually for the last 60 years.

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It’s survived bull markets
and bear markets

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on an uncorrelated basis.

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Sports is fundamentally changed

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because of new technologies
and because of culture.

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There are more billionaires than there
ever were before.

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And there are more ways to consume

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intellectual property

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than there ever were before.

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However, there are not a glut
of new sports teams.

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What was once an
entertainment venue

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that depended on sales of tickets,
hot dogs, and beer,

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now has become what we see
as a global real estate

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multimedia multi-sport
ownership group,

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and oftentimes
a global conglomerate.

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This is fueled by new media deals
and the proliferation of media

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over various new channels.

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Real estate opportunities

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such as plazas
and mixed use opportunities,

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the monetization of
intellectual property

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of the teams and the leagues
in a way that they never could before.

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It’s not just naming
rights and suite sponsorships.

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It’s the global proliferation of the intellectual property

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across the world.

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In 2011,

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the average NBA valuation for a team
was about $400 million.

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Going into 2026, an NBA franchise
is valued at

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$5.5 billion.

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Now, because a single buyer

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is going to have a very hard time

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coming up with the liquidity
to pay for a $5.5 billion asset,

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the leagues have loosened their rules.

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They’ve allowed private investment
funds, pension funds,

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sovereign wealth funds,

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and, increasingly,
consortiums of wealthy individuals

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that are coming together

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to support the control owner in acquiring the asset.

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As well,

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all of those institutions
and entities and buyers

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need liquidity to make this work.

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So there are various lending options, hybrid securities, and

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all kinds of institutional
and private capital sources

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that are funding the buyers
and their consortiums.

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And behind them are lenders
lending primarily

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to those institutions who are ultimately funding the buyers.

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I’m Matt Eisler, Head of Sports
Capital at Latham & Watkins.

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I’ve been advising on sports
transactions for over 13 years,

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and I’m excited to help clients

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navigate one of the most compelling

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and rapidly institutionalizing
sectors in the world.