We are seeing the confluence of an emerging asset class in sports merging with perhaps the greatest asset class of all-time: technology. Both asset classes are attracting global attention and sports is the new incubator for technology. Technologies from AI to cutting-edge biotech are cutting their teeth in the sports ecosystem first. This convergence is greatly boosted by rapidly growing interest in sports ownership.
FON’s Andy Schneider points out, “What we’re seeing today is the institutionalization of sports ownership. Family offices are no longer looking only at NFL, NBA, or MLB teams. They’re investing across European football clubs, Formula One teams, cricket leagues, women’s sports, esports, and emerging global sports properties. Sports has become a legitimate global asset class.”
This nuanced and downstream focus on leagues beyond the elite leagues allows sports innovations whether it be athlete performance or fan engagement or enterprise AI to find crucial early adopters. Emerging leagues are hungry for growth just like the sports innovators are. It’s a perfect match and a founding pillar for TFO Sports, who recently launched a fund at the convergence of highly sought-after sports properties and technology. By bringing both leagues and technology into the same portfolio TFO is accelerating the growth of both sets of stakeholders – sports franchises and technology.
TFO’s Managing Partner Matt Sherman expands on the thesis:
“TFO Sports has a strong pipeline and process to identify and invest in the highest growth technology companies that can gain widespread adoption through global sport. Additionally, our unique ability to be able to invest and serve as an innovation partner to a wide range of global sports leagues and teams gives our LPs the diversification necessary to generate alpha in this asset class.”
Beyond deal selectivity TFO brings an exceptional commitment to operating excellence to achieve those sought after alphas. TFO’s General Partner & General Counsel David Foster sums it up:
“Network in sports is everything. We have assembled a team of industry veterans and professional athlete executives to open up doors and execute growth strategies for our portfolio companies.”
The global stage of sports gives AI companies a crucial proving ground as they try to permeate various aspects of sports – from fan experiences to player health & performance but only in roles that keep our beloved sports truly ours.
As family offices continue to diversify beyond traditional investments, sports technology and franchises are increasingly being viewed alongside private equity, venture capital, real estate, and private credit as a core alternative asset class. The next decade may see more family office capital flow into sports than at any time in history.
Learn more about the TFO Sports Fund Here or contact info@tfoequity.com
