Technology, data and infrastructure the new frontier for sport investment
Technology, data and infrastructure are going to be at the forefront of sports investment as money moves beyond simply buying teams, according to new analysis.
It could help the global sports market grow by nearly 45 per cent at the end of the decade, according to Investec, from $417bn last year to upwards of $600bn by 2030.
The FTSE 100 bank says that the UK can be a global leader in managing this transition, with the ability to go deeper than a surface-level club purchase.
The international bank’s Oliver Cardigan said: “The UK is part of a global fanbase which streams and attends multiple British sports fixtures and events each year. There’s also growing participation in sports, whether exercising or competing, which increases the potential wallet share within UK Sports.”
The research – which details the 10-20 per cent return margins cited for sport-adjacent investments – comes ahead of an Investec UK Sports Summit, taking place this week, which will convene £1 trillion of capital at their Gresham Street headquarters.
Sport investment changing direction
Added Cardigan: “It’s this combination of watching and playing sports which is creating multiple growth opportunities looking for investment.”
Investec’s report states that “technology is becoming the operating layer that determines whether sporting attention can be converted into revenue”, and adds that “fandom is one of the most under-monetised assets in sport”.
It follows Liverpool FC being valued at around £5bn after a consortium featuring Amazon founder Jeff Bezes purchased a significant minority stake in the Merseyside club.
Furthermore vacuum cleaner tycoon Sir James Dyson and AFC Bournemouth owners Black Knight invested in Bath Rugby and Exeter Chiefs respectively earlier this year as rugby union continues to look for external growth.
Cardigan said: “According to the findings of our whitepaper, the most attractive fan propositions combine emotional loyalty with clear routes to spend. Members-only content, premium access, athlete-led storytelling and personalised offers can all increase wallet share.”